Excalibur Resources Ltd.

Excalibur Resources Ltd.

June 29, 2011 16:09 ET

Excalibur Extends Silver King Option Agreement

TORONTO, ONTARIO--(Marketwire - June 29, 2011) - Excalibur Resources Ltd. ("Excalibur") (CNSX:XBR)(FRANKFURT:A0MMDH) is pleased to announce that it has renegotiated and signed an Option Agreement that replaces a 2007 Option Agreement (as amended in August 2009). Under the new agreement, in return for total cash payments of $192,243 over the next 3 years and the issuance of 140,000 shares, Excalibur has the option to acquire a 100% interest in the mineral rights, title and interest in 24 crown grants and 8 mineral claims located south of Nelson, BC. In addition, Excalibur has the option to acquire a 100% interest in the land rights for a payment of $250,000. All option payments are to be completed before June 2, 2013, after which the only significant payments to be made are:

  1. Upon receipt of a positive feasibility study, the one-time issuance of shares equal to 1% of the then outstanding shares in the capital of Excalibur, and
  2. An Advanced Royalty of $5,000 annual indexed payment, to be deducted from a 2.5% Net Smelter Royalty payment.

In addition, there are certain requirements contained in the agreement such as the payment of taxes and the filing of assessment work.

Excalibur's Chairman, Mr. Gallagher, commented, "We welcome the signing of a new agreement, which extends the previous option period, reduces our cash payments and allows Excalibur to purchase 100% in both the land and mineral rights. It is our goal to outline a 43-101 compliant resource in the next phase of drilling".

Excalibur Resources Ltd. is a junior exploration mining company focused on the discovery, development and mining of economically viable precious and base metal mineral resources.

On behalf of the Board of Directors:

Tim Gallagher, Chairman

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

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