Khalkos Exploration Inc.

Khalkos Exploration Inc.

April 05, 2012 09:00 ET

Khalkos Exploration Inc.: $4.3M Agreement Signed With Virginia on Murdoch

MONTREAL, QUEBEC--(Marketwire - April 5, 2012) - KHALKOS EXPLORATION INC. ("Khalkos") (TSX VENTURE:KAS) announces that it has signed an agreement with Virginia Mines Inc. (TSX:VGQ)("Virginia") whereby Virginia can acquire a 55% interest on Khalkos' Murdoch property. Virginia must incur exploration work totaling $4M over a five year period, including a $1M firm commitment within 18 months of the agreement. This should allow the completion of a first drilling program. Moreover, installments totaling $300,000 must be paid by Virginia to Khalkos, including a $60,000 installment at the signing of the agreement.

The Murdoch property consists of 184 claims, covering 87 km2, located in the Labrador Trough, around 160 km south of Kuujjuaq, northern Quebec. Centered on a geological formation which underwent little or no exploration, the property holds a potential for significant zinc and/or copper SEDEX type deposits. In 2008, prospecting teams discovered boulders yielding grades between 5.6% and 17.5% in zinc.

Dominique Doucet, founding president of Khalkos stated, "We are proud that Khalkos' first exploration partnership agreement is with Virginia Mines, whose excellent reputation is well-known. We hope that this kind of partnership will be repeated several times in the future. Moreover, this first agreement marks the true beginning of Khalkos' activities. Khalkos is well on its way to becoming a major player in northern Quebec exploration."

Statements in the release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially. We undertake no duty to update any forward-looking statement to conform the statements to actual results or changes in our expectations.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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