SOURCE: Kokanee Minerals Inc.

December 16, 2010 03:25 ET

Major Blocks Totalling 504 Km2 Optioned Near Canaco

VANCOUVER, BC--(Marketwire - December 16, 2010) -

809 27 Alexander Street,

Vancouver, BC; V6A 1B2

December 16, 2010


Kokanee Minerals Inc. ("Kokanee" or "the Company") reports that in conjunction with its experience and presence in Tanzania the Company has optioned a prospective property in the Handeni area of eastern Tanzania.

The property consists of two Prospecting Licenses (PL) that cover, respectively, 279.16 km(2) and 225.34 km(2). The property covers the area northwest of the proposed extension of the zone identified on Canaco's Magambazi property. The same rocks that host that zone continue on to the optioned property. Preliminary work has identified quartz veins and artisanal workings on the PLs.

"This is an important step forward for the Company," said Kokanee's President, Abby Farrage. "The Company is very pleased to be acquiring these two significant blocks of land in such a promising area of Tanzania. This establishes Kokanee as a major presence there."

The property under negotiation is being acquired from a private Tanzanian company for payments of $5 million and issuing 2.5 million shares and completing $5 million in exploration over the next 5 years. This transaction is subject to the execution of a final written agreement.

The PLs were won on a closed tender bidding process, and the Offers of Grant for the PLs from the Ministry of Mines have been received. The company has initiated the PL issuance process by accepting the offers and paying the preparation fees.

This release has been reviewed by Glen Macdonald, P.Geo., the designated Qualified Person as defined by National Instrument 43-101.

On behalf of the Board of Directors,

"Abby Farrage"

Souhail Abi Farrage
President and Director

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the content of this press release.

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Kokanee Minerals Inc. via Thomson Reuters ONE


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