Kria Resources Ltd.
TSX VENTURE : KIA

Kria Resources Ltd.

January 31, 2011 09:12 ET

Kria Resources Announces Permits to Begin Construction at the Halfmile Mine and Appointment of Vice President Operations

TORONTO, ONTARIO--(Marketwire - Jan. 31, 2011) - Kria Resources Ltd. ("Kria" or the "Company") (TSX VENTURE:KIA) is pleased to announce that it has received both the Industrial Lease and Licence of Occupation from the New Brunswick Department of Natural Resources and the Approval to Construct and Operate from the New Brunswick Department of Environment permit to Construct and Operate the Halfmile Mine and the required permit and mining lease from the New Brunswick Department of Environment granting approval to construct and operate the Halfmile Mine. The receipt of both these permits allows Kria to begin construction activities at the Halfmile mine site.

Kria is also pleased to announce the appointment of Mr. Paul Keller, P.Eng. as Vice President Operations of the Company effective February 1, 2011.

Mr. Keller brings extensive mine operations experience in Canada with almost 30 years of experience most recently as Manager of Technical Services for a major Canadian mining contractor where he led a team of engineers and designers on various mining contracts. Previously, Mr. Keller held the positions of Chief Operating Officer and Vice President of Operations for a Canadian base metal producer where he was responsible for leading the company through the project development from feasibility, construction and commissioning. Mr. Keller began his career with Rio Algom Limited and has also worked in various management roles with Hemlo Mines owned by Barrick in mine operations, engineering and maintenance.

Mr. Keller holds a Bachelor of Engineering/Mining from Laurentian University and is a Professional Engineer.

Mr. Mike Hoffman, the President and Chief Executive Officer of the Company, stated, "The receipt of the approvals to construct and operate the Halfmile Mine by the New Brunswick Department of Environment and Natural Resources is an important milestone and allows Kria to immediately begin site construction activities at Halfmile with production expected to begin in the third quarter of 2011. We are also pleased that Paul Keller is joining our team at this time and his experience and leadership will be invaluable in working with all our stakeholders as we become the newest base metal producer in New Brunswick."

In connection with the appointment Mr. Keller will be granted 300,000 Kria stock options with the price established at close the day before he begins employment. The options shall vest immediately and expire within five years from date of grant as per the terms of Kria's stock option plan and shall remain subject to receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.

About Kria Resources Ltd.

Kria Resources is a base metal exploration and development company focused on high-quality, advanced-stage base metal assets. Kria's primary asset is the Halfmile Lake and Stratmat properties near Bathurst, New Brunswick. The Halfmile Lake and Stratmat projects are optioned by Kria from Xstrata, which is currently the largest shareholder of Kria.

Kria completed a preliminary economic assessment ("PEA") on its Halfmile Lake project in September 2010 that indicated the project's economics improve if the mineral resource from Kria's nearby Stratmat property is combined with the mineral resource from Halfmile Lake. The combined Halfmile/Stratmat PEA estimated a pre-tax NPV of C$253 million (8% discount rate) and IRR of over 20% based on metal prices of US$1.03/lb Zn, US$3.03/lb Cu, US$0.92/lb Pb and US$15.08/oz Ag. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Please refer to the Company's technical reports filed on SEDAR for details regarding the NI 43-101 compliant resource estimates on Halfmile, Stratmat and Ruttan. Prices and other assumptions mentioned in this press release are Kria's internal assumptions and estimates. Additional information is available at www.kriaresources.com.

On January 17, 2010, Kria Resources announced that it has entered into a definitive agreement (the "Agreement") with Trevali Resources Corp. ("Trevali") (TSX:TV)(FRANKFURT:4TI)(OTCQX:TREVF) to complete a business combination whereby Trevali will acquire all of the issued and outstanding common shares of Kria and Kria will become a wholly owned subsidiary of Trevali (the "Transaction"). The Transaction will occur by way of a statutory plan of arrangement and will be subject to receipt of all necessary regulatory, court and shareholder approvals, including disinterested shareholder approval by the Kria shareholders.

Kria has filed its notice of annual and special meeting (the "Meeting") on January 24, 2011 and has set the record date as February 16, 2011 with the Meeting to be held on March 30, 2011.

Cautionary Note Regarding Forward-Looking Information

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the Transaction the anticipated timing and results with respect to the completion of the Transaction, the Halfmile property and the anticipated timing with respect to the receipt of additional permits required to begin construction and development of the mine, exploration prospects, and timing with respect to all regulatory approvals and shareholder approvals, if required. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of mineral prices; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and, delays in obtaining governmental approvals or required financing or in the completion of activities. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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.

Contact Information