NQ Exploration Inc.
TSX VENTURE : NQE

NQ Exploration Inc.

February 17, 2011 13:00 ET

NQ Exploration Signs a Final Option Agreement with Murray Brooks Minerals for its Duncan West Property

LAVAL, QUEBEC--(Marketwire - Feb. 17, 2011) - NQ Exploration Inc. (TSX VENTURE:NQE) is pleased to announce that it has signed a final agreement granting Murray Brooks Minerals an option to acquire a 50% interest in the Duncan West property.

This acquisition is made in consideration of 300,000 shares, $45,000 in cash payments and $1,400,000 in exploration over three years. Murray Brooks Minerals will subsequently have the option of acquiring an additional 30% interest by incurring another $1,400,000 in exploration expenditures over two years and issuing 200,000 more shares.

The Duncan West project lies about 35 km south of Radisson, in the James Bay region of Quebec. It consists of 165 map-designated claims covering an area of 84.49 km2. The claims are wholly-owned by NQ Exploration Inc., with some of them subject to a 2% NSR royalty.

The property lies a few kilometres from the sheared contact between the Bienville and La Grande geological sub-provinces. The basement rocks of the project are characterized by sheared basalt flows, iron formations and varied, sometimes sheared intrusions of the La Grande geological sub-province. The geological, geochemical and geophysical data suggests an environment favourable to the discovery of volcanogenic copper/zinc deposits, as well as orogenic-type gold deposits.

Terms of the agreement:

Exploration and development - Murray Brooks Minerals has undertaken to spend a total of $1,400,000 on exploration and development on the property during the first option period in accordance with the following timetable:

On or before the first anniversary: $600,000
On or before the second anniversary: $400,000
On or before the third anniversary: $400,000

Murray Brooks Minerals has also undertaken to produce a NI 43-101 technical report on the property after Year 2. Once the Year 3 exploration work is completed, Murray Brooks Minerals will have 30 days to decide whether to exercise its option to acquire an additional 30% interest by incurring $1,400,000 in exploration expenditures over the ensuing two years ($500,000 the first year and $900,000 the second year).

Common share issue - Murray Brooks Minerals must issue a total of 300,000 common shares to NQ Exploration Inc., subject to the required regulatory approvals. These shares will be issued at a deemed price of $0.20 per share. Should Murray Brooks Minerals elect to exercise its option to acquire an additional 30% interest, it shall issue another 200,000 shares to NQ Exploration Inc.

Cash payments - Murray Brooks Minerals shall pay a total of $45,000 over the next three years, as follows:

On the first anniversary: $10,000
On the second anniversary: $15,000
On the third anniversary: $20,000

Once Murray Brooks Minerals has spent a total of $1,400,000 in exploration and development on the property, issued a total of 300,000 common shares and made the required $45,000 in cash payments to NQ Exploration Inc., it will be deemed to have acquired a 50% undivided interest in the property.

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