Goldrea Resources Corp.

Goldrea Resources Corp.

November 10, 2006 18:28 ET

Goldrea Completes Purchase Agreement for Daye Gold Mine

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 10, 2006) - Goldrea Resources Corp. (TSX VENTURE:GOR)(PINKS SHEETS:GORAF)(FWB:GOJ) reports the company has completed an agreement with Rushan City to purchase up to 80% of the operating 1750 TPD Daye Gold Mine located approximately 30 km northwest of Rushan City, Shandong Province, China.

Included in the agreement is a 10% interest which will be purchased by the management and employees of the Daye operation. The company is pleased by the confidence of the Daye management in the future of the operations. The payments totaling $16,342,857.14 Cdn ($143,000,000 Yuan) for the acquisition of 80% are as follows:

1st Year: $2,000,000 Cdn total ($1,750,000 GOR/$250,000 employees) on
acceptance of the transaction by the Central Government of
China and the regulatory authorities on the TSX Venture

2nd Year: $2,902,857.14 ($2,540,000 GOR/$362,857.14 employees);

3rd Year: $3,814,285.71 ($3,337,500 GOR/$476,785.71 employees);

4th Year: $3,814,285.71 ($3,337,500 GOR/$476,785.71 employees); and

5th Year: $3,811,428.57 ($3,335,000 GOR/$476,428.57 employees).

The Company will also assume 80% (GOR 70%/employees 10%) of the $5,000,000 long term debt at 6%/annum. Details of the long term debt are pending.

The Daye Mine is currently operating from remnants of the open pit, underground down dip from the pit and custom milling local deposits in the area. During the open pit operation the Daye Mine was reportedly producing 60,000 ounces of gold per year. The Company's intent is to increase production to from the previous 1,705 TPD to 2,000 TPD from its adjoining property interests within 16 months.

Goldrea has completed considerable exploration drilling (approximately 20,000 meters (65,000 feet)) on the zones down dip from the known surface mineralization and have identified considerable gold mineralization up to 400 meters down dip (see previous releases). Currently the exploration 5 compartment shaft is down 187 meters (613 feet) in depth with approximately 100 meters remaining to be sunk (see attached sketch:

Exploration is continuing on the leases surrounding the Daye Mine as well as other leases in the surrounding area.

The agreement to purchase the Daye Mine is subject to regulatory approval.


Larry W. Reaugh, President and Chief Executive Officer

This news release may contain certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the Toronto Venture Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.

The TSX-Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Goldrea Resources Corp.
    Larry W. Reaugh
    President and Chief Executive Officer
    (604) 531-9639
    (604) 531-9634 (FAX)