Kria Resources

Kria Resources

August 17, 2009 09:20 ET

Kria Resources Revises Purchase Agreement With Xstrata

TORONTO, ONTARIO--(Marketwire - Aug. 17, 2009) - Kria Resources (TSX VENTURE:KIA) today announced that it has revised its agreement with Xstrata Canada Corporation - Xstrata Zinc Canada Division ("Xstrata") regarding the purchase of the Halfmile Lake and Stratmat Properties located near Bathurst, New Brunswick.

Pursuant to the revised agreement, Kria will purchase the properties upon the satisfaction of the following revised conditions:

- On August 17, 2009, paying to Xstrata US$500,000 cash and issuing 10,416,666 common shares priced at $0.24 per share representing consideration in the amount of Cdn$2,500,000 plus 5,208,333 common share purchase warrants (a "Warrant"). Each Warrant shall entitle the holder thereof to acquire one common share of Kria at an exercise price of $0.24 for a four year period from the date of issue. The Warrants were priced equal to the closing price of Kria's shares on the TSX Venture Exchange on August 14, 2009;

- On or before January 16, 2010, paying to Xstrata US$1,000,000;

- On or before July 16, 2010, paying to Xstrata US$2,500,000 cash and issuing units valued at an aggregate of Cdn$1,000,000, with each unit comprised of one common share plus one-half of one warrant (the "Units"). The warrants relating to the Units shall extend for a period of four years from the issue date and be priced at 125% of the share price of July 16, 2010;

- On or before January 16, 2011, paying to Xstrata US$8,000,000; and

- On or before July 16, 2011, paying to Xstrata US$5,000,000.

Kria originally entered into the agreement to purchase the Halfmile Lake and Stratmat Properties from Xstrata in July 2008. Please see the Press Release dated July 29, 2008 for further details.

About Kria Resources

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 property has a NI 43-101 compliant Indicated mineral resource estimate of 6.26 million tonnes grading 8.13% zinc, 2.58% lead, 0.22% copper and 30.78 g/t silver using a 5.0% capped zinc equivalent cut-off grade and an Inferred resource estimate of 6.08 million tonnes grading 6.69% zinc, 1.83% lead, 0.14% copper and 20.51 g/t silver using a 5.0% capped zinc equivalent cut-off grade. A recently completed Preliminary Economic Assessment of the Halfmile Lake project estimates a pre-tax NPV of C$587 million and IRR of over 16%. The Stratmat property has an Inferred Mineral Resource estimate of 5.52 million tonnes grading 6.11% zinc, 2.59% lead, 0.40% copper and 54.21 g/t silver using a 5.0% zinc equivalent cut-off grade.

Kria also has the Ruttan copper-zinc sulphide project near Leaf Rapids, Manitoba that has an NI 43-101 compliant mineral inferred resource estimate of 19.75 million tonnes grading 1.17% copper and 1.47% zinc using a 1.0% capped copper equivalent cut-off grade. Please refer to the Beartooth Platinum and Kria Resources Information Circular of February 26, 2009 filed on SEDAR for the NI 43-101 compliant resource estimates on Halfmile, Stratmat and Ruttan.

Please visit our website at for additional information.

Quality Control

The technical contents of this press release have been supervised and reviewed by Steve Davies, P. Eng., Vice President Operations of Kria and Dayle Rusk, P. Geo., Vice President Exploration of Kria, both of whom are Qualified Persons as defined under NI 43-101 guidelines.

Regulatory Footnotes

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 future financial or operating performance of Kria and its projects, statements regarding exploration and development prospects, the identification of mineral reserves and resources, costs of and capital for exploration projects, exploration expenditures, timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. 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".
Estimates regarding the projected economics of the projects are based on research, experience and analysis of the management of the Company and external advisors. 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 (and the company resulting from the successful completion of the proposed transaction) 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; delay or failure to receive board or regulatory approvals; 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.


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