Citation Resources Inc.

November 23, 2011 09:00 ET

Citation Enters Into Letter of Intent for 100% Option in Biricu Prospect, Mexico from Esperanza Resources

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 23, 2011) - Citation Resources Inc. ("Citation" or the "Company") (TSX VENTURE:CTT) is pleased to announce that it has signed a Letter of Intent with Esperanza Resources Corp. ("Esperanza") for an option to acquire Esperanza's 100% interest in the Biricu Prospect mineral exploration concession located in Morelos State, Mexico. The Biricu Prospect comprises more than 38,000 hectares of highly prospectable ground. Management believes that the Biricu Prospect is the direct on-strike extension of five skarn deposits in the Guerrero Gold Belt (El Limon-Los Guajes - Torex Gold Resources Inc.; Bermejal, Los Filos, and Nukay - Goldcorp Inc.; Ana Paula - Newstrike Capital Inc.). To date, very limited exploration activity has been conducted on the property.

The acquisition is subject to, among other things, completion of satisfactory due diligence by Citation and entering into a definitive option agreement (the "Option Agreement"), which under the Letter of Intent the two parties have agreed to use their best efforts to execute by December 22, 2011.

Pursuant to the terms of the Option Agreement the Company will be required to make a cash payment of $20,000 upon execution of the Option Agreement and over four years: i) issue 1,050,000 common shares in Citation to Esperanza, including 250,000 on the first anniversary of executing the Option Agreement; and ii) complete exploration expenditures of $4,000,000, including $250,000 in the first year. Esperanza will also nominate one Director to Citation's Board.

In addition, Esperanza will also be granted a 2% net smelter royalty on all metals recovered from the property and be paid within six months of Citation receiving a bankable feasibility study on the property a resource payment equal to Cdn$10.00 per ounce of gold resource estimated in the bankable feasibility study, which sum will be payable in cash or, at Citation's election, satisfied by the issuance of common shares in Citation.

About Citation Resources

Citation Resources Inc. is a growth-oriented, Canadian mining company dedicated to the exploration and development of precious and base metal resources. Citation is based in Vancouver, British Columbia and aims to create shareholder value through the acquisition, exploration, and development of profitable mineral properties, in a manner that is consistent with best practice in environmental stewardship, safety and stakeholder engagement. The Company has an option agreement with Rainy Mountain Royalty Corporation and International Bethlehem Mining Corporation to acquire the right to earn a 60% total interest in the Eva Kitto Property. The Eva Kitto Property claims are located approximately 190 kilometres northeast of Thunder Bay, Ontario.



Nigel Kirkwood, CFO

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