SOURCE: Gold Bag, Inc.

February 17, 2011 08:30 ET

Gold Bag's Focus Gold Announces Mining Leases in Prolific Timmins Mining District to Be Renewed

RENO, NV--(Marketwire - February 17, 2011) - Gold Bag, Inc. (OTCBB: GBGI), operating as Focus Gold Corp., announced today that the renewal of the Mining Leases for the Watabeag and Russell Creek properties has been approved by Ontario's Ministry of Northern Development, Mines and Forestry. On October 10, 2010, Focus Gold announced an option agreement with Victoria Gold Corp to acquire the properties located in the Timmins Mining District in Ontario, Canada, one of the world's most prolific gold mining areas.

Under the terms of the Option Agreement, Focus Gold will acquire 100% ownership of the Properties upon issuance of 250,000 shares of common stock and the expenditure of $2,000,000 for cumulative Exploration and Maintenance on the properties, to be completed on or before the third anniversary of the date of the Agreement. Renewal of the Mining Leases will allow Focus Gold to commence exploration and maintenance on the properties.

The Timmins Mining District has been a prolific gold mining area since the late 1800s when a staking rush occurred that was bigger than either the Klondike or California gold rushes. The Watabeag Property consists of 8 claims on 131 hectares located approximately 60 kilometers east of Timmins. Initial drilling on the property in 1981 intersected 8.9 g/t Au across a 0.9 meter interval.

The Russell Creek property consists of 128 hectares, also on 8 claims, located approximately 70 kilometers east of Timmins. Asarco (Cook Joint Venture) completed ground magnetic and EM surveys in the area that defined a northwest trending fault structure along Russell Creek.

Company CEO, Grant R. White, commented, "We've been very excited about these properties from the very beginning. Now that the mining lease renewals have been approved, we can finally begin investing in the properties and determine their full potential."

About Gold Bag Inc.

Gold Bag Inc., operating as Focus Gold Corp., is a Company focused on the acquisition and development of gold mining properties primarily in the Americas including a recently signed option agreement with Victoria Gold for two properties in the Timmins Mining District and through its wholly owned subsidiary Focus Gold Mexico Corp., the Huicicila mine in Mexico. For further information please visit www.focusgoldcorp.com.

Contact Information

  • Gold Bag, Inc.
    Grant White
    CEO
    (416) 593-8034 ext. 2115

    Investor Relations:
    Desert Son
    (623) 465-0844

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    Small Cap Power
    Mark Thorburn
    416 646-1941