Chieftain Metals Inc.
TSX : CFB

Chieftain Metals Inc.

April 16, 2013 18:44 ET

Chieftain Metals Inc. Announces Internal Reorganization

Chieftain Metals Corp. to Become New Public Holding Company of Chieftain Metals Inc.

TORONTO, ONTARIO--(Marketwired - April 16, 2013) - Chieftain Metals Inc. ("Chieftain" or the "Company") (TSX:CFB) announces that its Board of Directors approved the submission of an internal corporate reorganization to shareholders for approval at the upcoming annual meeting of shareholders of the Company scheduled for May 15, 2013. The Company has incorporated Chieftain Metals Corp. (the "Holding Company") to facilitate the internal reorganization, which will proceed by way of a statutory plan of arrangement and, if completed, will result in Chieftain shareholders exchanging their existing Chieftain securities for equivalent securities in the Holding Company on a one-for-one basis. As a result, the Company will become a wholly-owned subsidiary of the Holding Company and securityholders of the Company will become securityholders of the Holding Company, which will have the same share structure and the same number and class of outstanding securities as Chieftain currently has.

The proposed internal reorganization is intended to allow flexibility with project financing and potential partnerships as well as to better position the assets of Chieftain (including its flagship asset, the Tulsequah Chief Project) for future development and increasing shareholder value by separating the operating assets from the public corporation without the costly and time consuming transfer of existing approvals and permits.

If the internal reorganization is completed, the shares of the Holding Company will be listed on the Toronto Stock Exchange in substitution for the shares of Chieftain. The proposed internal reorganization has been conditionally approved by the Toronto Stock Exchange and remains subject (among other things) to shareholder approval. Full details of the plan of arrangement will be found in the shareholders' proxy information package, to be mailed to shareholders on or about April 24, 2013 and filed concurrently under the Company's profile on SEDAR at www.sedar.com.

About Chieftain Metals Inc.:

Chieftain's principal business is the acquisition, exploration and development of mineral properties. Since incorporation, the Company's business has focused entirely on the acquisition, and thereafter the development, of the Tulsequah Chief Polymetallic Project, in north-western British Columbia, Canada. Chieftain's Property consists of 54 mineral claims and Crown-grants covering approximately 30,547 hectares and covers two previously producing mines. For more information on Tulsequah and related projects, please refer to the Company's NI 43-101 compliant technical reports, being "Technical Report for the Tulsequah Chief Project of Northern British Columbia, Canada" with an effective date of December 12, 2012 as well as "Tulsequah Chief Deposit, Tulsequah Chief Property, Northern British Columbia" and "Big Bull Project, Tulsequah Chief Property, Technical Report, Northern British Columbia", each dated as of November 8, 2010, which are available under the Company's profile on SEDAR (www.sedar.com).

Forward-Looking Information:

This press release includes certain "forward-looking statements" within the meaning of the Ontario Securities Act or other laws or regulations. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization, mineral resources or reserves, exploration results, future plans and objectives of Chieftain Metals Inc. are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

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