Drift Lake Resources Inc.
TSX VENTURE : DLA

May 16, 2011 15:59 ET

Drift Lake Resources Issues Shares in Final Payment for the Acquisition of A 25% Interest in the Bayovar Prospect in Peru and Grants Stock Options

TORONTO, ONTARIO--(Marketwire - May 16, 2011) - Drift Lake Resources Inc. (TSX VENTURE:DLA) ("Drift Lake" or the "Company") has completed its acquisition of a 25% interest in the Faulkner operated Bayovar Prospect in Peru. An initial US$2.0 million cash payment was made to Faulkner on the closing of the acquisition transaction in February. This second and final payment for the interest consisted of the issuance of 5,489,143 DLA Shares at CDN$0.525 per share, representing a market value of US$3.0 million, based on the weighted average closing price of the DLA Shares on the TSX-V for the first ten trading days after the completion of the recently closed Amalgamation transaction.

At a Board meeting held on May 11th, the Directors unanimously approved a rolling stock 10% Option Plan and grants of a total of three million stock options to six staff members who recently joined the Company, all subject to shareholder approval of the new Option Plan. The awarded options will be exercisable at CDN$0.49 per share, the closing price on May 11, 2011, and will vest from time to time over two years. Prior to these six grants, the Company had 800,000 stock options outstanding.

About Drift Lake Resources

Drift Lake Resources is focused on oil and gas exploration and development opportunities in South America. Management has decades of experience in the Company's focus countries in evaluating hydrocarbon producing basins and identifying exploration opportunities.

Forward-Looking Statements

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties.

Neither the 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.

Contact Information

  • Drift Lake Resources Inc.
    360 Bay Street, Suite 500
    Toronto, Ontario M5H 2V6
    Keith Spickelmier
    Executive Chairman
    713-248-5981