KARMIN EXPLORATION INC.
TSX VENTURE : KAR

KARMIN EXPLORATION INC.

October 01, 2010 09:00 ET

Karmin Terminates Share Exchange Agreement with Ignite Energy

TORONTO, ONTARIO--(Marketwire - Oct. 1, 2010) -

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Karmin Exploration Inc. ("Karmin") (TSX VENTURE:KAR) announced today that it has terminated the share exchange agreement dated March 15, 2010 (the "Share Exchange Agreement") between Karmin and Ignite Energy Resources Pty Ltd ("Ignite"), due to the failure by Ignite to complete a private placement of its ordinary shares in the timeframe contemplated in the Share Exchange Agreement. Consequently, Karmin will not complete the reverse take-over transaction with Ignite contemplated in the Share Exchange Agreement (as previously announced on March 19, 2010) (the "Transaction"). In addition, none of the resolutions approved by Karmin shareholders at the meeting of Karmin shareholders held on June 14, 2010, including, the consolidation of the common shares of Karmin on a 6:1 basis, the continuation of Karmin under the Canada Business Corporations Act, the election of directors and the change of Karmin's name to Licella Energy Resources Inc., will be carried out.

Trading in Karmin's shares was halted on March 16, 2010 in accordance with the policies of TSX Venture Exchange ("TSXV") pending completion of the Transaction. Given the termination of the Share Exchange Agreement, Karmin has requested that trading of its common shares be resumed on the TSXV. Subject to TSXV approval, Karmin expects that trading of its common shares will resume on or about October 4, 2010. 

About Karmin

The common shares of Karmin are listed on the TSXV and trade under the symbol "KAR". The principal business of Karmin is to acquire and explore resource properties. Karmin's main project is located at Aripuanã, Brazil. Karmin owns 30% of the Aripuanã zinc project, one of the largest undeveloped zinc projects in Brazil. Aripuanã covers a complete mineralized massive sulphide district, with five areas of mineralization (Arex, Ambrex, Babacu, Massaranduba and Mocoto) over a 25 kilometre strike length.

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