Kalahari Resources Inc.

Kalahari Resources Inc.

November 22, 2010 09:03 ET

Kalahari Corporate Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 22, 2010) - Kalahari Resources Inc. (TSX VENTURE:KLA) ("The Company") is pleased to provide a corporate update regarding its ongoing exploration projects well as announce a share consolidation.


The Company announced an 8,000 meter drill program designed to test numerous gold targets on the Lamaque project on November 8, 2010. A number of known zones are being tested for extensions and new exploration targets which have never been adequately assessed will be drilled. Results from the current program are expected to assist in the Company's next resource calculation, which it plans to complete prior to the end of February, 2011.


The Company also announces that the Board of Directors has unanimously approved a consolidation of its share capital on the basis of one (1) new common share for up to every existing ten (10) common shares (the "Consolidation"), subject to approval of the shareholders of the Company and regulatory approval. Where the exchange results in a fractional share, the number of common shares will be rounded to the nearest whole common share. The Board of Directors believes that the Consolidation will enhance the marketability of the common share as an investment and should facilitate additional financings to fund future operations. Shareholder approval of the proposed Consolidation will be sought at the Company's upcoming annual general and special shareholders meeting to be held on December16, 2010. The record date for the proposed Consolidation will be set subsequent to both the requisite shareholder and regulatory approvals being obtained. The Company currently has a total of 334,214,714 common shares issued and outstanding and no preferred shares. In the event the required shareholder and regulatory approvals are obtained and the Company effects the full one (1) new common share for every existing ten (10) common shares Consolidation, the Company would have a total 33,421,471 common shares issued and outstanding. In connection with the Consolidation, the name of the Company may be changed to a name to be decided upon by the Board of Directors, subject to regulatory approval.


Kalahari has negotiated the right to 100% ownership of the 3,074 acre Lamaque property, located in the Abitibi Greenstone Belt, one km north of the "Cadillac Break" and immediately south of the Lamaque and Sigma mines. The Sigma mine produced approximately 4.4 million ounces of gold and the Lamaque mine, on the northern boundary of the property, produced approximately 4.5 million ounces of gold over its lifetime primarily from the 'Main' plug, a geological feature similar to the no. 4 Plug located on the property. The No. 4 Plug and another zone known as the No 10 Vein collectively have an inferred mineral resource of 1,365,000 tons grading 0.186 opt gold (cut) or 0.275 opt gold (uncut) as audited and reclassified by Watts, Griffis & McOuat's NI 43-101 Technical Report, dated September 2004 (see Sedar October 20, 2004 for details of report). Since the Company acquired the Lamaque property in 2003 over $4.5 million has been spent on exploration expenditures.

The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

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