Opawica Explorations Inc.
TSX VENTURE : OPW

Opawica Explorations Inc.

March 25, 2011 15:12 ET

Opawica Explorations Inc.: News Release

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 25, 2011) - Opawica Explorations Inc. (TSX VENTURE:OPW) ("Opawica" / the "Company") announces that it has entered into a binding commercial agreement with Xstrata Copper Canada, a division of Xstrata Canada Corporation ("Xstrata") to acquire Xstrata's interests in 11 mining tenements in the Whitesides and Carscallen townships, Ontario ("the Properties"). The Properties are situated in the West Timmins, Ontario, region near Melkior Resources Inc. Carscallen properties.

The acquisition of the Properties is subject to a royalty and back-in right to Xstrata. Should a deposit containing 250,000 metric tonnes or more of contained copper be discovered, Xstrata may elect to earn back into 51% of the Properties by payment of 2.5 times Opawica's exploration expenditure, increasing to 70% if Xstrata undertakes a Feasibility Study, or incurs $12,000,000 of feasibility study expenditures. If Xstrata does not back into the Properties, it is entitled to a 2% Net Smelter Return royalty.

In consideration for the commercial acquisition of the Properties, Opawica has agreed to transfer all of its interests in the Chance Property, located in Timmins, Ontario to Xstrata, and to discontinue all litigation regarding such properties against Xstrata, with each party to bear its own costs.

Following closing of the transaction Opawica will prepare a work program on the Properties for 2011 and detail the parameters of such program at that time. Opawica anticipates closing the transaction in the next 30 days.

In addition, the Company has appointed Mr. Mark Lofthouse as a director of the Company. Mr. Lofthouse has over 20 years experience as a real estate agent and private businessman in the B.C. lower mainland. Mr. Lofthouse has extensive experience in private real estate investment and was previously a director of RT Minerals Corp. (CNSX) in 2008 and 2009.

The Company has granted 100,000 stock options to a director of the Company and 100,000 options to a consultant of the Company at $0.10 each pursuant to the Company's stock option plan. The options are exercisable over a two year term.

The forgoing information may contain forward-looking statements relating to the future performance of the Company. Forward looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties are detailed from time to time in the Company's filings with the appropriate regulatory authorities. We seek safe harbour.

Neither 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.

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