Glen Eagle Resources Inc.

Glen Eagle Resources Inc.

December 09, 2010 08:00 ET

Glen Eagle to Receive 4 Million Shares From Key Gold Holding

MONTREAL, QUEBEC--(Marketwire - Dec. 9, 2010) - Glen Eagle Resources Inc. (TSX VENTURE:GER) ("Glen Eagle" or the "Company") is pleased to announce that it will receive 4 million shares and $480,000 in cash or cash equivalent from Key Gold Holding for the sale of its Souart Gold property in Quebec. The proceeds from the transaction will be vested over a 3 year period and is subject to the acceptance from the TSX Venture Exchange. Key Gold Holding is a publicly traded company with 10 million shares outstanding.

The details of the transaction are as follows:

Dates Cash Payments $ Share Issuances Work Commitments $
Within 10 Business Days of the Effective Date 40,000 750,000  
From the Effective Date through the 1st Anniversary of the Effective Date 150,000 1,000,000 750,000
Prior to the 2nd Anniversary of the Effective Date 150,000 1,000,000 1,000,000
Prior to the 3rd anniversary of the Effective Date 150,000 1,250,000  
Note:   For the 2nd and 3rd anniversary, Key Gold Holding has the option to make the payments in cash of in cash equivalent through share issuances. If Key Gold Holding does not meet the above commitment or decides to withdraw, Glen Eagle will take repossession of the property.

Glen Eagle is pleased to have initiated this transaction with Key Gold Holding, a company committed to bring the historical resource estimates 43-101 compliant and to advance the development of Souart with adequate work commitments. The transaction will also enable Glen Eagle to stay focused on its Authier lithium project near Val d'Or while having the opportunity to participate in a potential gold discovery through Key Gold Holding.

"Neither 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"

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