Century Energy Ltd.

Century Energy Ltd.

May 30, 2012 10:55 ET

Century Energy Signs Letter of Intent for St. Anthony Mineral Properties

CALGARY, ALBERTA--(Marketwire - May 30, 2012) -


Century Energy Ltd ("Century") (TSX VENTURE:CEY) is pleased to announce that it has signed a Letter of Intent with Pacific Iron Ore Corporation ("Pacific") for the right to acquire up to a 40% undivided interest in the St. Anthony and Best/King Bay mineral properties ("Property") located in the Beckington Lake, Squaw Lake and Fourbay Areas of Patricia Mining Division, Ontario ("Transaction"). The Property is comprised of approximately 8,784 hectares. The Property is more fully described in the NI 43-101 technical report dated June 12, 2009 which can be found on Pacific's website at www.pacificironorecorp.com .

The non-binding Letter of Intent is subject to several conditions including applicable regulatory approval, board of director's approval, due diligence, an updated NI 43-101 to substantiate the proposed Phase I work program and completion of a financing by Century. Century intends to complete an equity private placement offering of a minimum of $2M prior to or concurrent with the closing of the Transaction. Details of the private placement offering will be announced at a later date. The Transaction is scheduled to close no later than September 29, 2012 or such other date as determined by Century and Pacific.

Century shall be entitled to earn an initial 20% undivided interest in the Property by making a $2M cash payment for expenditures on the Property's Phase 1 work program. Century shall be entitled to earn an additional 20% undivided interest for a further $2.5M payment within 12 months of the closing of the Transaction or $3M payment within 24 months of the closing of the Transaction.

Century intends to continue to pursue exploration on its oil and gas properties located in Saskatchewan.

This news release may contain certain forward-looking statements, including the entering into of a definitive agreement for the Transaction, the proposed private placement and the timing for each, the proposed closing date for the Transaction and the costs for Century to earn the second 20% undivided interest in the Property, all of which involve substantial known and unknown risks and uncertainties, many of which are beyond the Company's control. The Letter of Intent is non-binding and there is no assurance that the parties will reach a definitive agreement, and if it does, there is no assurance that the conditions thereunder will be met. Such risks and uncertainties include, without limitation, risks associated with mining exploration, development, exploitation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other explorers and producers, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, and stock market volatility. Century's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds that Century may raise in the proposed private placement. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to Century or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Century does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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