SOURCE: Raytec Development Corp.

November 29, 2007 03:05 ET

Raytec Acquires Historic Iron Ore Resource

VANCOUVER, BC--(Marketwire - November 29, 2007) - Raytec Metals Corp. (the "Company") (TSX-V: RAY) (FRANKFURT: XZT) is pleased to announce the signing of an agreement to acquire a 100% interest (subject to a 2% Net Smelter Royalty) in the El Sol Historic Iron Ore Project, located in the Red Lake Mining District of Ontario, Canada.

Extensive exploration drilling and metallurgical testing was conducted on the property between 1956 and 1957. Airborne and ground magnetic surveys defined two large parallel magnetic anomalies, with the "A" zone measuring in excess of 4 km in length and the "B" zone measuring in excess of 2 km in length. A total of 67 diamond drill holes, with a combined length of 10,363 meters, were drilled on these two zones, identifying a historic resource of 312,000,000 tons grading 32.4% iron to a depth of 300 meters (H. Brodie Hicks, P.Eng, 1958). The two holes that penetrated below the 300m (1,000 foot) level show no significant changes in grade. From knowledge of similar iron formations in the area, notably at Central Patricia Gold Mines Ltd. where mining for gold in iron formation was carried to a depth of 1220m (4,000 feet), it may be inferred that a substantial increase in iron depths may be encountered at El Sol.

Analytical results of a composite of 69 reject samples from the El Sol property was reported in 1958 by Lakefield Research Limited as follows: Fe (total) 33.860 percent; Fe (acid soluble) 31.200 percent; Cu 0.016 percent; S 0.260 percent; P 0.084 percent; and Ti02 0.210 percent. The current available metallurgical data suggests that a premium pellet could be produced by magnetic concentration and pelletization, and that 85 to 90 percent of the iron could be recovered with a concentrate grade of 70 percent (a concentration ratio of 2.5:1).

The above data were incorporated in a report dated August 25, 2006 prepared for the vendors by Carl D. Huston, P. Eng., a registered Professional Engineer in and for the Provinces of Ontario and British Columbia, being a Qualified Person as defined by the National instrument 43-101.

Investors are cautioned that results stated herein are historic in nature. Studies were performed and results calculated prior to implementation of NI 43-101 standards, and conclusions should not be relied upon. The company plans to re-drill the property as soon as possible to generate new data for completion of an updated 43-101 compliant resource calculation.

The property is located 75 kilometers north of Red Lake, Ontario. It has good quality road access to within a few kilometers of the property, quad trails to the deposits, is in close proximity to two hydroelectric power generating stations, and is situated within 20 kilometres of existing rail bed.

To acquire the property, the Company will be required to pay to the Vendors $160,000 ($100,000 on TSX Venture Exchange approval of the acquisition, $20,000 on or before February 10, 2008 and $40,000 on or before February 10, 2009), and issue to the Vendors a total of 1,250,000 shares of the Company (250,000 shares on TSX Venture Exchange approval, 250,000 shares within 120 days of Exchange approval, 250,000 shares within 240 days of Exchange approval, 250,000 within one year of approval, and 250,000 within 480 days of Exchange approval). The Company must also incur a total of $3,000,000 in Exploration Expenditures on the property as follows:

--  incur $500,000 in Exploration Expenditures within one year of TSX
    Venture Exchange approval;
--  incur $1 million in Exploration Expenditures on the properties within
    two years of TSX Venture Exchange approval date;
--  incur $1,500,000 in Exploration Expenditures on the properties within
    three years of TSX Venture Exchange approval date;
--  the Company has the right to pay to the Vendors, the equivalent to any
    Exploration Expenditure shortfall in any given year, in lieu of incurring
    required Exploration Expenses under the agreement.

A finders' fee is payable consisting of 10% of the cash and shares issued under the agreement. The cash portion of the finders' fee, being $10,000, will be paid by way of shares of the Company at a deemed value of $0.50 per share. The share portion of the finders' fee will equate to 10% of any shares issued under the agreement, up to a maximum of 125,000 shares.

Having recently completed financings totalling in excess of $1.3 million in Flow-Through and in excess of $600,000 in Non-Flow-Through, the Company is well situated to commence work on their current Uranium properties in the Athabasca Basin, as well as embarking on a preliminary scoping study at its wholly owed El Sol Iron Project.

Under the guidelines of National Instrument 43-101 ("NI 43-101") of the Canadian Securities Administrators, the qualified person for the Company is Gordon Allen, P. Geo. Mr. Allen brings more than 32 years of experience in the exploration industry, 14 of which were spent in Latin America. Between 2003 and early 2007 he worked for Far West Mining Ltd. as their exploration manager on the Candelaria project in northern Chile. The Santo Domingo Sur and Iris deposits were discovered during this program. Mr. Allen has extensive experience in the exploration for a wide variety of deposit types including porphyry copper-gold, volcanogenic massive sulphide, epithermal precious metal, and iron oxide copper-gold deposits. Mr. Allen has worked in Canada, the United States, Latin America, and Africa on precious and base metal exploration projects ranging from grassroots to feasibility stage. He is a professional geologist registered with APEGBC and APEGS, and holds an honours BSc degree with a specialization in geology from the University of British Columbia.

The Company also wishes to announce the granting of incentive stock options to its directors, officers, consultants and employees, under its Stock Option Plan, for the purchase of up to 950,000 common shares of the Company for a period of 3 years at a price of $0.55 per share.

About Raytec Metals Corp. Raytec Metals Corp. is an exploration and development Company with interests in Uranium properties in the Athabasca Basin, Saskatchewan, and Iron Ore properties in Ontario.

On behalf of the Board,



Brian Thurston, B.Sc., President


Cautionary note: This report may contain forward-looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. The company has filed a National Instrument 43-101 report on the Key Lake properties. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward-looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.

Contact Information

    Suite 1128 - 789 West Pender Street
    Vancouver, BC, V6C 1H2
    Tel: (604) 669-9330
    Fax: (604) 669-9335