Orestone Mining Corp.

Orestone Mining Corp.

October 22, 2010 14:09 ET

Orestone Announces Issuance of Shares Under Option Agreement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 22, 2010) - Orestone Mining Corp. (TSX VENTURE:ORS) ("Orestone" or the "Company") announces that it has reached an agreement with 802213 Alberta Ltd. ("802213"), Kelly Brent Funk and, the Company's wholly-owned subsidiary, Intuitive Exploration Inc. ("Intuitive"), to issue shares in the capital of the Company to 802213 to fulfill requirements of Intuitive under a 2008 option agreement (the "2008 Agreement").

The 2008 Agreement allows Intuitive to earn an undivided 100% ownership interest in the Funk Property (the "Property") by paying $450,000 and issuing 350,000 shares in the capital of Intuitive to 802213 pursuant to the schedule set out in the 2008 Agreement. Of the 350,000 shares, 65,000 shares have been issued to 802213.

The Property is comprised of 7245.45 hectares on 37 mineral claims located in the Todd Creek Area, NTS Map Sheet 140A of the Skeena Mining Division in the Province of British Columbia. Intuitive holds the option for the Property on behalf of a joint venture, of which Intuitive has a 51% interest.

The Company, Intuitive, 802213 and Kelly Brent Funk have entered into an agreement to amend the 2008 Agreement (the "Agreement") pursuant to which any future obligation to issue Intuitive shares under the 2008 Agreement will be satisfied by the issuance of shares in the capital of the Company. 

To maintain the option in good standing and earn the interest in the Property, Intuitive is required to pay $385,000 to 802213 and Orestone is required to issue 285,000 shares to 802213. Intuitive will be reimbursed by its joint venture partners for 49% of the payments made pursuant to the Agreement.

The schedule for the remaining payments and issuance of shares is as follow:

  1. seventy five thousand ($75,000) dollars and 50,000 shares of Orestone on or before October 31, 2010;
  2. seventy five thousand ($75,000) dollars and 60,000 shares of Orestone on or before October 31, 2011;
  3. one hundred ten thousand ($110,000) dollars and 75,000 shares of Orestone on or before October 31, 2012; and
  4. one hundred twenty five thousand ($125,000) dollars and 100,000 shares of Orestone on or before October 31, 2013.

The issuance of shares pursuant to the Agreement is subject to acceptance by the TSX Venture Exchange.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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