North Springs Resources Corp.
OTC Bulletin Board : NSRS
PINKSHEETS : NSRS

North Springs Resources Corp.

January 20, 2012 19:39 ET

North Springs Resources Executes Agreement to Earn 100% Interest in Two Prospecting Licenses in Prolific Mining Area in Guyana

Retains Respected Guyana Counsel to Assist With Local Regulatory Compliance

LAS VEGAS, NEVADA--(Marketwire - Jan. 20, 2012) - North Springs Resources Corp. (OTCBB:NSRS)(PINKSHEETS:NSRS) (the "Company" or "North Springs") is pleased to announce it has signed definitive agreements to earn a 100% interest in the mineral rights conferred under two Prospecting Licences (Large Scale) in the prolific gold producing region known as the Kabouri Gold Mining Area in the country of Guyana, South America.

On January 7, 2012, North Springs signed two separate agreements under which they will conduct mineral exploration activities over a term of three (3) years on two properties held under large scale prospecting licenses. These are known as the Rio Property (12,490 acres) and the Belo Property (12,560 acres). Under the terms of the agreements, should a mine be developed, it is subject to a three percent (3%) Net Smelter Royalty. In consideration of the right to conduct mineral exploration, North Springs shall pay an aggregate of one hundred fifty thousand US dollars ($150,000) and 10,000,000 shares of restricted Company common stock to the private party license holders and shall carry out work programs of no less than five hundred thousand US dollars ($500,000) in the aggregate on each property. Title to the Prospecting Licences shall remain in the name of the original licensees until the above expenditures have been completed and all regulatory approvals have been granted. At that time, the prospecting licenses would be formally transferred to a Guyana corporation which would be wholly owned by North Springs.

The Rio and Belo Property Agreements require that North Springs and the private party license holder work together to file any and all necessary regulatory documentation and to ensure strict adherence to all applicable laws and regulations, including but not limited to those promulgated by the Geology and Mines Commission of Guyana ("GGMC").

The Rio and Belo Properties cover a combined area of over 25,000 acres of prime greenstone belt located in the Kabouri Gold Mining Area, located about 160 km south-south west of Georgetown, Guyana. The Kabouri Gold Mining Area is part of a well-defined 1,000 mile long band of gold producing greenstone geology from Venezuela and French Guyana. Numerous world-class gold mines have operated in the region with an estimated total combined gold resource of over 110,000,000 ounces, including Las Christinas (17 Moz. - Venezuela), El Callo (18 Moz.-Venezuela), Toroparu (10 Moz. - Guyana), Aurora (6.5 Moz. - Guyana), Omai (4 Moz. - Guyana), Gros Rosebel (13.7 Moz. - Suriname), Nassau (9 Moz. - Suriname), and Paul Isnard (3.9 Moz. - French Guyana).

Although there is no documented history of gold production, the Belo and Rio Properties show evidence of significant artisanal mining from alluvial, colluvial, and bedrock sources. Both properties share similar geological and geochemical characteristics with several well-known formerly producing gold mines in the immediate area at Omai (4 Moz. historical - currently being redeveloped) and at the Omai West Project currently being developed by Azimuth Resources Limited just 12 miles to the south.

The Omai West Project (Azimuth) hosts the Hicks-Smarts-Kaburi Prospects, three separate gold deposits identified from current and historic small-scale artisanal mining activities around the deposit outcrops and in local streams. The Hicks Prospect is a 2 km continuous shear zone with a historical gold estimate of 290,000 ounces. Current drilling is expected to increase the Hicks Prospect estimate. The Smarts Prospect is a high-grade gold deposit located directly below a small artisanal pit that has been defined by over 30,000 m of drilling. Highlights of the drilling results include 29 m grading @ 14.27 g/t gold, 14 m grading @ 17.87 g/t gold, 21 m grading @ 7.0 g/t gold, and 11 m grading @ 14.30 g/t gold. The Kaburi Prospect includes the largest artisanal bedrock pit in Guyana - 200 m in diameter and up to 15 m deep - and has never been tested by modern exploration. Six drilling rigs are currently working at the Omai West Project to complete the required work for an initial technical report to be completed in Q2 2012. Argonaut Securities Pty. Limited, a licensed Australian financial services company, is projecting estimates of an initial combined Hicks/Smarts gold resource of 1,100,000 to 1,300,000 oz.

"The Rio and Belo Properties represent another significant opportunity to invest in a gold property with enormous upside in a well-established world-class gold mining district," stated Mr. Harry Lappa, President of North Springs. "We will work closely with the prospecting license vendors, the GGMC, and the Ministry of Natural Resources and Energy to move forward with exploration and development at the properties as quickly as possible. We hope to one day establish ourselves as significant gold producers in the region."

The Company is also pleased to announce that it has retained a well-respected local Guyanese law firm as Guyana Counsel to assist with the process of complying with all applicable laws and regulations in Guyana and with transfer of title at the agreed time. The selected law firm specializes in corporate acquisitions, international negotiations, and mining law, among other areas. Guyana Counsel anticipates submitting the necessary documentation to the GGMC in short order as required by law to permit North Springs to move ahead with its exploration plans.

Guyana is well-known as a mining friendly jurisdiction with a stable democratic government and modern well-managed mining legislation. Gold mining and exploration are a significant part of the Guyanese economy. On December 29, 2011, Natural Resources Minister Robert Persaud reported gold production in Guyana reached over 350,000 ounces or 30,000 ounces more than the government set target for the year. At current gold spot prices this would equate to more than $575 million annually. Minister Persaud went on to report that this is only the "reported" gold production from mainly small-scale miners and that the GGMC would continue to work closely with larger and publicly traded mining companies that have a vested interest in the accuracy of their gold production reporting. International mining giants Newmont Mining Corp and Teck Resources Limited have both made recent investments to develop multi-million ounce gold deposits in Guyana.

For complete terms and conditions, please refer to the Company's Form 8-K detailing the terms of these agreements, a copy of which is filed with the Securities & Exchange Commission on EDGAR.

About North Springs Resources Corp.

North Springs Resources Corp. is focused on the evaluation, acquisition, exploration, and development of mineral resource properties. Currently, we are in the evaluation and acquisition phase of operations. The Company is led by a skilled and experienced management team and independent consulting geologists with many years of experience. North Springs is committed to creating value for its shareholders by advancing its current holdings and by acquiring new properties with significant potential.

For additional information, please visit www.northspringsresources.com.

Harry Lappa, President

THIS NEWS RELEASE CONTAINS "FORWARD-LOOKING STATEMENTS", AS THAT TERM IS DEFINED IN SECTION 27A OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE UNITED STATES SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. STATEMENTS IN THIS NEWS RELEASE, WHICH ARE NOT PURELY HISTORICAL, ARE FORWARD-LOOKING STATEMENTS AND INCLUDE ANY STATEMENTS REGARDING BELIEFS, PLANS, EXPECTATIONS OR INTENTIONS REGARDING THE FUTURE.EXCEPT FOR THE HISTORICAL INFORMATION PRESENTED HEREIN, MATTERS DISCUSSED IN THIS NEWS RELEASE CONTAIN FORWARD-LOOKING STATEMENTS THAT ARE SUBJECT TO CERTAIN RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH STATEMENTS. STATEMENTS THAT ARE NOT HISTORICAL FACTS, INCLUDING STATEMENTS THAT ARE PRECEDED BY, FOLLOWED BY, OR THAT INCLUDE SUCH WORDS AS "ESTIMATE", "ANTICIPATE", "BELIEVE", "PLAN" OR "EXPECT" OR SIMILAR STATEMENTS ARE FORWARD-LOOKING STATEMENTS. RISKS AND UNCERTAINTIES FOR THE COMPANY INCLUDE, BUT ARE NOT LIMITED TO, THE RISKS ASSOCIATED WITH NATURAL RESOURCE EXPLORATION AND DEVELOPMENT AND NEEDS FOR FUNDING AS WELL AS THE RISKS SHOWN IN THE COMPANY'S MOST RECENT ANNUAL REPORT ON FORM 10-K AND ON FORM 10-Q AND FROM TIME-TO-TIME IN OTHER PUBLICLY AVAILABLE INFORMATION REGARDING THE COMPANY. OTHER RISKS INCLUDE RISKS ASSOCIATED WITH THE REGULATORY APPROVAL PROCESS, COMPETITIVE COMPANIES, FUTURE CAPITAL REQUIREMENTS AND THE COMPANY'S ABILITY AND LEVEL OF SUPPORT FOR ITS EXPLORATION AND DEVELOPMENT ACTIVITIES. THERE CAN BE NO ASSURANCE THAT THE COMPANY'S DEVELOPMENT EFFORTS WILL SUCCEED AND THE COMPANY WILL ULTIMATELY ACHIEVE COMMERCIAL SUCCESS. THESE FORWARD-LOOKING STATEMENTS ARE MADE AS OF THE DATE OF THIS NEWS RELEASE, AND THE COMPANY ASSUMES NO OBLIGATION TO UPDATE THE FORWARD-LOOKING STATEMENTS, OR TO UPDATE THE REASONS WHY ACTUAL RESULTS COULD DIFFER FROM THOSE PROJECTED IN THE FORWARD-LOOKING STATEMENTS. ALTHOUGH THE COMPANY BELIEVES THAT THE BELIEFS, PLANS, EXPECTATIONS AND INTENTIONS CONTAINED IN THIS NEWS RELEASE ARE REASONABLE, THERE CAN BE NO ASSURANCE THOSE BELIEFS, PLANS, EXPECTATIONS OR INTENTIONS WILL PROVE TO BE ACCURATE. INVESTORS SHOULD CONSIDER ALL OF THE INFORMATION SET FORTH HEREIN AND SHOULD ALSO REFER TO THE RISK FACTORS DISCLOSED IN THE COMPANY'S PERIODIC REPORTS FILED FROM TIME-TO-TIME WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION.

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