Harvest Gold Corporation
TSX VENTURE : HVG

Harvest Gold Corporation

March 22, 2007 17:39 ET

Harvest Gold Announces Option Agreement with Conley Mines Ltd.

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 22, 2007) - Harvest Gold Corporation (TSX VENTURE:HVG) (the "Company") is pleased to announce further to its news release of October 5, 2006 it has entered into a formal option agreement dated January 25, 2007 (the "Property Option Agreement") with Conley Mines Ltd. (the "Optionor") concerning the acquisition of all of the Optionor's right, title and interest (the "Interest") in and to certain mineral claims located in the Province of Manitoba and referred to as the Conley Estate Claims. Pursuant to the terms and conditions set forth in the Property Option Agreement, the Company will pay the aggregate sum of $85,000 (the "Cash Payments"), issue an aggregate of 300,000 common shares in the capital stock of the Company to the Optionor and expend a total of $500,000 on the Property, as follows:

(a) the sum of $5,000 cash to be paid to the Optionor upon execution of a letter of intent, which the parties acknowledge has been paid as of the date of the Property Option Agreement;

(b) issuing 25,000 common shares of the Company upon execution of the Property Option Agreement and subject to receipt of approval from the TSX Venture Exchange;

(c) on or before the first anniversary of the Property Option Agreement, the further sum of $10,000 cash to be paid to the Optionor, issuing a further 40,000 common shares of the Company and funding expenditures on the Property totaling $30,000;

(d) on or before the second anniversary of the Property Option Agreement, the further sum of $15,000 cash to be paid to the Optionor, issuing a further 60,000 common shares of the Company and funding expenditures on the Property totaling $60,000;

(e) on or before the third anniversary of the Property Option Agreement, the further sum of $20,000 cash to be paid to the Optionor, issuing a further 75,000 common shares of the Company and funding expenditures on the Property totaling $150,000; and

(f) on or before the fourth anniversary of the Property Option Agreement, the further sum of $35,000 cash to be paid to the Optionor, issuing a further 100,000 common shares of the Company and funding expenditures on the Property totaling $260,000.

The Company shall have the right to repurchase up to one half of the Net Smelter Royalty ("NSR") (being 1.5% of Net Smelter Returns) for $500,000 per 0.5%, for a total purchase price of $1,500,000.

Harvest Gold Corporation is a gold focused exploration company working in Nevada, USA and Manitoba, Canada. In Nevada, the Company is exploring a large generative gold property at Garcia Flats in the South Carlin Trend, an advanced property with a gold-silver resource at the Longstreet Mine, in Northern Nye County, and the Rosebud Mine Project, a past producing mine in northwest Nevada. Harvest is also exploring claims in Manitoba, Canada at the Rice Lake Gold Belt, the Rocky Ridge Gold property in the Lac du Bonnet mining district, and is Joint Ventured with Canadian Gold Hunter Corp (TSX:CGH) at the Assean Lake Gold Project.

ON BEHALF OF THE BOARD OF DIRECTORS

John Roozendaal, President

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

Contact Information

  • Harvest Gold Corporation
    Keith Patey
    Director of Communications
    (604) 986-2020 or Toll Free: 1-866-816-0118
    (604) 986-2021 (FAX)
    Website: www.harvestgoldcorp.com