International KRL Resources Corp.
TSX VENTURE : IRK

International KRL Resources Corp.

May 24, 2006 09:15 ET

International KRL Resources Announces Spin-Off Plan for Copper Hill

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 24, 2006) - International KRL Resources Corp. ("The Company") (TSX VENTURE:IRK) today announced its intention to seek regulatory approval to permit the Company to distribute to its shareholders, on a pro rata basis, by way of a reduction of paid up capital, its interest in the Company's Copper Hill Project. The Copper Hill Project consists of mineral claims, mineral leases and options covering approximately 56 square miles in the Shining Tree area of the Abitibi Greenstone Belt of Northern Ontario.

The proposed plan of reorganization will be implemented in several stages. The initial stage will involve the transfer of the Copper Hill Project to the Company's wholly-owned subsidiary (the "Subsidiary") in exchange for shares of the Subsidiary. It is expected that the closing of this initial transaction will take place on or before May 31, 2006.

Subject to regulatory approval, the Company will then distribute the shares of the Subsidiary, by way of a return of capital, to the shareholders of International KRL Resources Corp. on a pro rata basis. Following the receipt of regulatory approval, the Company will issue a press release confirming the record date established for such distribution.

International KRL Resources' Board of Directors believes that it is in the best interests of its shareholders to segregate its active mineral properties and that the plan of reorganization will enhance shareholder value, simplify valuation of the Company, and increase access to capital for the Copper Hill Project through the public markets.

Implementation of the plan is subject to a number of conditions including regulatory approval, approval of the Supreme Court of British Columbia to reduce the stated capital of International KRL Resources Corp., the Subsidiary obtaining Reporting Issuer status in British Columbia, Ontario and Alberta and the listing of the Subsidiary's shares on either the TSX Venture Exchange or the CNQ Exchange.

International KRL Resources Corp. is a mineral exploration company engaged in the acquisition, exploration and advancement of prospective Canadian properties. The Company is currently focused on exploring for copper, uranium and gold on its NOR property in the Yukon Territory. A 15,000-metre drill program will be underway shortly. The camp is currently being set up and drills are expected on the property in the next 10 days pending weather. For more information on International KRL Resources Corp. and its property portfolio please visit www.krl.net, www.sedar.com and www.sec.gov websites.

ON BEHALF OF THE BOARD

Seamus Young, President and CEO

Certain matters discussed in this document may contain forward-looking statements within the meaning of the Private Securities Litigation reform Act of 1995. Statements contained in this news release that are not historical facts are forward-looking statements, which are subject to a number of known and unknown risks, uncertainness and other factors that may cause the actual results to differ materially from those anticipated in our forward-looking statements. Although we believe that the expectations in our forward-looking statements are reasonable, actual results may vary, and we cannot guarantee future results, levels of activity, performance or achievements.

The Company may amend, modify and/or supplement the reorganization plan provided that all necessary corporate actions, securities approvals and related filings and matters are complied with and/or obtained. The Company may also determine not to proceed with the Plan, notwithstanding any prior approvals given or obtaining.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from registration is available.

The TSX Venture Exchange has neither approved nor disapproved the information contained herein.

Contact Information

  • International KRL Resources Corp.
    Seamus Young
    President & CEO
    (604) 689-0299
    Toll Free: 1-877-689-6130 (Canada) or 1-800-665-3772 (USA)
    or
    International KRL Resources Corp.
    Judith T. Mazvihwa
    CFO
    (604) 689-0299
    Toll Free: 1-877-689-6130 (Canada) or 1-800-665-3772 (USA)
    info@krl.net / www.krl.net