SOURCE: ExGen Resources Inc.

ExGen Resources Inc.

August 08, 2016 16:00 ET

Exgen Resources Inc. Updated DOK Property Status

VANCOUVER, BC--(Marketwired - August 08, 2016) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

ExGen Resources Inc. (TSX VENTURE: EXG) (OTC PINK: BXXRF) (the "Company", or "ExGen") is pleased to announce it has entered into an amending agreement with the optionors of the DOK property to amend (the "Amendment") the option terms for the DOK property, which was initiated in May 2011 (see ExGen Press Release dated May 26, 2011).

The DOK property consists of approximately 26,365 acres and is located between the Schaft Creek and Galore Creek copper deposits to the south and the active exploration currently underway north of the Stikine River.

ExGen further reports that it has regained control of the DOK project from Continental Precious Minerals ("Continental"). Continental has elected to withdraw from its option which was initiated in April 2014 (see ExGen Press Release dated April 14, 2014), and as a result, Continental has no further interest in the DOK project.

The Company advises that pursuant to the Amendment the Company will make the following payments to the Optionors:

  1. $16,000 on execution of the Amendment;
  2. $20,000 on or before the first anniversary of the Amendment;
  3. $40,000 on or before the second anniversary of the Amendment;
  4. $50,000 on or before the third anniversary of the Amendment; and
  5. $90,000 on or before the fourth anniversary of the Amendment.

In addition, ExGen has agreed that if we sub-option DOK to another party prior to the completion of the payment of all of the cash payments noted above, then ExGen shall pay to the Optionees an amount equal to all of the cash option fees that ExGen receives from the Sub-Optionor pursuant to the sub-option agreement, until the full amount of all cash payments required above have been paid in full.

ExGen was also granted a 3 year extension from (April 30, 2017 to April 30, 2020) for the remaining $500,000 of exploration and development expenditures required to exercise the option and acquire 100% of DOK.

The 2014 drilling program, which consisted of 2 holes totalling 834.9m, and located 400m apart, demonstrated the presence of widespread porphyry copper style mineralization on the DOK property (see Press Release dated October 16, 2014).

"We are excited to have the DOK project returned to us after the significant drill program that was completed by Continental in 2014. We would like to thank Continental for their interest in the DOK project. We are now in the process of conducting a systematic review of the property with a view to determining the best strategic path forward," stated President and CEO, Jason Riley.

About ExGen Resources Inc.

ExGen, formerly Boxxer Gold Corp, is a project incubator with a strategy to aggregate projects during the current market downturn and then fund exploration through joint ventures and partnership agreements. This approach significantly reduces the technical and financial risks for ExGen, while maintaining the upside exposure to new discoveries and potential cash flow. ExGen intends to build a diverse portfolio of projects across exploration stages and various commodity groups. ExGen currently has 6 projects in Canada and the US.

For more information on ExGen please visit our website at http://exgresources.com or contact ExGen Resources Inc.

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.

Forward-Looking Information: This news release contains certain forward-looking information. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. In particular, this news release contains forward-looking information regarding: the DOK Option, the Amendment to the DOK Option; the potential length of the extension of the DOK Option; the completion of, and timing for, the option payments and exploration and development expenditures required to be made in order to exercise the DOK Option; the potential sub-optioning of the DOK Option by ExGen; and the observations made on drill core from the diamond drilling program and the analytical results from samples collected during the previously completed drilling program on the DOK project. There can be no assurance that such forward-looking information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such forward-looking information. This forward-looking information reflects ExGen's current beliefs and is based upon information currently available to ExGen and on assumptions that ExGen believes are reasonable. These assumptions include, but are not limited to: management's continued favorable evaluation of the DOK property; future costs and expenses of the DOK property being based on historical costs and expenses, adjusted for inflation; continued market acceptance of the DOK Property and the ability of ExGen to fund, either internally, or through private placements, sub-options, joint ventures or other financing arrangements, the option payments and exploration and development expenditures required to be made in order to exercise the DOK Option. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of ExGen to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: general business, economic, competitive, political and social uncertainties; capital market conditions and market prices for securities and junior market securities; the actual results of ExGen's business operations including its exploration operations; natural resource company market conditions and the market conditions of the natural resource industry in general; competition; changes in legislation, including environmental legislation, affecting ExGen; timing and availability of external financing on acceptable terms; and lack of qualified, skilled labour or loss of key individuals. A description of additional assumptions used to develop such forward-looking information and a description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in ExGen's disclosure documents on the SEDAR website at www.sedar.com. Although ExGen has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. ExGen does not undertake to update any forward-looking information except in accordance with applicable securities laws.

Contact Information