NQ Exploration Inc.
TSX VENTURE : NQE

NQ Exploration Inc.

February 10, 2011 08:30 ET

NQ Exploration Sells Three Properties to CHS Resources Inc.

LAVAL, QUEBEC--(Marketwire - Feb. 10, 2011) - NQ Exploration Inc. (TSX VENTURE:NQE) is pleased to announce that it has reached an agreement with CHS Resources Inc. ("CHS") for the sale of its Eastmain Nord, Conviac and Aylmer properties, all located within the James Bay territory.

The consideration for this acquisition is the issue of 7,603,360 shares from the treasury of CHS. NQ will initially have one seat (out of four) on the board of directors of CHS which will increase to two seats (out of five) following the forthcoming annual general meeting of CHS. At the closing of the transaction, NQ will own a 36.15% interest in the share capital, fully diluted, of CHS.

CHS, formerly International CHS Resources Inc. is a reporting issuer in good standing in the Provinces of BC and Alberta; it completed a 2 :1 consolidation of its issued shares, and a change of name, in December, 2010, and is planning to complete a financing which will enable it to carry out exploration programs on all the properties being acquired from NQ. It is anticipated that, if this proposed financing is fully completed, then the interest of NQ in the share capital of CHS will be reduced to approximately 22.6%.

NQ will be retained has manager of exploration. First exploration work will start on the Eastmain Nord property. A TDEM survey will be completed during the winter over an area of 13 km x 4 km covering a portion of an ENE-WSW striking volcanic belt. This portion of the Eastmain River greenstone belt has seen little exploration in the past and the company wishes to asses its base and precious metal potential.

The technical content of this press release has been checked by Pierre O'Dowd, geologist and vice president of exploration for NQ Exploration Inc. Mr. O'Dowd is a qualified person under Regulation 43-101 respecting standards of disclosure for mineral projects.

ABOUT NQ EXPLORATION INC.

NQ Exploration Inc. is a mining exploration company with a solid portfolio of 10 mining properties in the James Bay and Abitibi regions of Quebec. NQ Exploration Inc. is betting on Quebec's excellent mineral potential and favourable investment climate to produce new world-class gold and base metal deposits.

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 release.

Contact Information

  • NQ Exploration Inc.
    David Grondin
    President and Chief Executive Officer
    514-206-7727
    www.explorationnq.com