New World Resource Corp.

New World Resource Corp.

September 30, 2010 09:00 ET

New World's Long Valley Project Joint Ventured With GFE Capital

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 30, 2010) - New World Resource Corp. (TSX VENTURE:NW)(FRANKFURT:NWU) ("New World" or the "Company") along with GFE Capital Corp. ("GFE") (TSX-V Symbol: GFC) announces that New World, its wholly owned subsidiary New World Resource US, Inc. and GFE have entered into an Earn-In Agreement (the "Agreement") whereby GFE will have an option to acquire up to 80% interest in the Company's Long Valley claims ("Project") located in the Bald Mountain region of northeastern Nevada.

Long Valley Claim

The Project consisting of 254 claims and totaling 2,123 hectares is located on the edge of the pediment and covers the projected extension of the important northwest and north-northeast oriented structures that transect the Bald Mountain, Alligator Ridge, and Yankee gold deposits. These structural features are believed to control the gold mineralization found in the Bald Mountain district. Initial prospecting has revealed outcrops of silicified breccias similar to those found in the nearby Alligator Ridge area. The Bald Mountain, Alligator Ridge area is an established gold producing camp of Eastern Nevada and is actively being explored by Barrick Gold U.S. Inc. Past production and current proven and probable resources from this camp account for approximately 7.5 million ounces of gold.

Terms of the Agreement

Under the Agreement GFE has the right to acquire up to 80% interest in the Project by issuing shares to New World and incurring expenditures on the Project over 42 months. The Agreement is subject to the approval of the TSX Venture Exchange ("TSXV").

In particular, GFE has the right to earn:

  • a 51% interest in the Project by incurring not less than $250,000 of aggregate expenditures, and issuing an aggregate 300,000 shares to New World , on or before the nine month anniversary of the date GFE receives TSXV acceptance to the Agreement (the "Effective Date"), and the expenditures shall be incurred in accordance with a work program and budget that includes between three and five drill holes with aggregate drill meterage of not less than 1,200 metres;
  • a 60% interest in the Project by incurring not less than $850,000 of aggregate expenditures on or before the 18 month anniversary of the Effective Date;
  • a 70% interest in the Project by incurring not less than $1,550,000 of aggregate expenditures, and issuing an aggregate of 600,000 shares to New World on or before the 30 month anniversary of the Effective Date; and
  • an 80% interest in the Project by incurring not less than $2,250,000 of aggregate expenditures, and issuing not less than an aggregate of 900,000 shares to New World on or before the 42 month anniversary of the Effective Date.

GFE shall be the operator of and solely responsible for all expenditures on the Project until such time as a joint venture is formed. A joint venture shall be formed upon GFE earning a minimum 51% interest if GFE elects to relinquish the right to earn the maximum interest available. Upon the formation of a joint venture, a Joint Venture Agreement shall be entered into where the parties shall be responsible for contributing to expenditures incurred after the date of the formation of the joint venture in proportion to their respective interests.

The Joint Venture Agreement shall provide for standard dilution in the event a party elects not to contribute to the joint venture, and if either party commits to a program and subsequently fails to contribute its proportionate share of expenditures for a work program, the defaulting party shall be deemed to have forfeited its right to contribute to any further costs under the Joint Venture Agreement and shall have its interest subjected to double dilution. If any party's interest is reduced to less than 10%, that party (the "Royalty Holder") shall assign its remaining interest to the other party and shall be entitled to receive its sole remuneration and benefit of the assignment and conveyance, by way of royalty, 2% of net smelter returns ("NSR") from the Project. The Royalty Holder shall grant to the other party an option to purchase one-quarter of the NSR for $1,000,000.

Mr. John Lando, President of New World stated: "We are very pleased to have attracted a quality partner in GFE to advance and drill the Long Valley gold project. This project has been developed by New World over the last 4 years and it will be exciting to test this potential extension to the prolific Bald Mountain, Alligator Ridge gold complex."

About New World

New World Resource Corp. is a Canadian based mining exploration company focused on building a strong, diversified project portfolio within the Americas. The Company's projects include the Lipeña copper-gold project and the Pastos Grandes lithium brine project in Bolivia.


John Lando, President

This news release includes "forward-looking information", as such term is defined in applicable securities laws. The forward-looking information includes, without limitation, statements regarding the extent and timing of its exploration programs, exploration program budgets and exploration results. This forward-looking information is given as of the date of this news release. Users of forward-looking information are cautioned that actual results may vary from the forward-looking information contained herein. While the Company has based this forward-looking information on its expectations about future events as at the date that such information was prepared, the information is not a guarantee of the Company's future performance and is subject to risks, uncertainties, assumptions and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking information. Such factors and assumptions include, amongst others, the effects of general economic conditions, the price of lithium, changing foreign exchange rates and actions by government authorities, uncertainties associated with legal proceedings and negotiations and misjudgments in the course of preparing forward-looking information. In addition, there are also known and unknown risk factors which could cause the Company's actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information. Known risk factors include, among others, risks relating to exploration and development; the ability of the Company to obtain additional financing; the Company's limited operating history; the need to comply with environmental and governmental regulations; political and economic instability and general civil unrest in Bolivia; potential defects in title to the properties; fluctuations in currency exchange rates; fluctuating prices of commodities; operating hazards and risks; competition; and other risks and uncertainties. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking 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 is under no obligation to update or alter any forward-looking information except as required under 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 news release.

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