Melkior Resources Inc.

Melkior Resources Inc.

December 19, 2007 16:51 ET

Melkior Sells Otish to Kakanda

OTTAWA, ONTARIO--(Marketwire - Dec. 19, 2007) - Melkior Resources Inc. (TSX VENTURE:MKR) is pleased to announce that it has signed a letter of intent for the sale of its Otish Basin uranium interests to Kakanda Resources Corp. Prior to the sale, Melkior is a 50-50 partner with Santoy Resources Ltd. Santoy will retain its interest and become operator of the project.

The terms of the letter of intent are as follows:

- Kakanda will pay Melkior $500,000 cash;

- Kakanda will issue 4,000,000 of its common shares to Melkior;

- Melkior retains a 100% right to any kimberlite (for diamonds);

- Melkior retains a 1% Net Smelter Return (NSR) royalty on 972 claims owned by Melkior Santoy;

- Melkior retains a 0.25% NSR on the Marc Andre claims.

Melkior retains a 100% ownership of approximately 330 Otish area claims being explored for copper and molybdenum.

Melkior considers the sale of its Otish uranium interests of significant interest to the three parties namely: Kakanda, Santoy and Melkior. Melkior intends to focus on the exploration of its gold properties in Timmins, Beardmore and Launay as well as its nickel properties in Timmins and Ungava. Kakanda is an emerging, dedicated and very active uranium explorer and Santoy is a focussed uranium exploration company and has considerable uranium expertise.

Melkior continues to be an important participant in the exciting Otish uranium play via its significant shareholding in Kakanda and the ownership of a royalty. Santoy and Kakanda are preparing an exploration program for 2008. The finalization of the sale is subject to approval by the regulatory authorities.

This news release was prepared by Jens E. Hansen, P. Eng Director and President of Melkior.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in the Company' periodic reports including the annual report or in the filings made by the Company from time to time with securities regulations. The Company undertake no obligation to publicly release the result of any revision of these forward-looking statements to reflect events or circumstances after the date they are made or to reflect the occurrence of unanticipated event.

The TSX Venture Exchange (TSX-V) has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Melkior Resources Inc.
    Jens E. Hansen
    613-828-7268 (FAX)