Red Crescent Resources Limited

Red Crescent Resources Limited

August 11, 2011 11:58 ET

Red Crescent Signs Definitive Agreement With Petmin Limited to Advance Development of Sivas Copper Project

- RCR fulfills all Conditions Precedent of the initial MOU with Petmin -

- Petmin farm-in arrangement triggered -

TORONTO, ONTARIO--(Marketwire - Aug. 11, 2011) -


Red Crescent Resources Limited (TSX:RCB), a mineral exploration and development company focused on base metals in Turkey, today announced that pursuant to its completion and fulfillment of all the conditions precedent in the initial MOU, it has signed a definitive agreement (DA) with Petmin Limited, a South African multi-commodity mining company, following the receipt of regulatory approvals and successful completion of due diligence activities. The investment agreement is designed to accelerate the development of Red Crescent's Sivas Copper Project.

Under the terms of the investment agreement, which was first disclosed on May 16th, 2011, Petmin would make an equity investment in Red Crescent totaling CDN$4.64 million. Petmin subscribed for and was issued 3,170,000 common shares on May 24th, 2011 as part of the Initial Subscription. The balance will now follow by August 14th, 2011 under a separate Subscription Agreement signed in conjunction with the DA. Upon completion Petmin will have received approximately 9.3 million shares, each at a price of CDN$0.50, for a 10.1% ownership interest in Red Crescent Resources Limited.

Petmin will also invest up to a maximum of CDN$17 million in four conditional tranches over a period of 3.5 years, to earn up to a 37.5% interest in the Red Crescent controlled joint venture, RCR Quantum AS, which is responsible for the management and development of the Sivas Copper Project. The terms of the "farm-in" arrangement are unchanged from the disclosure in the May 16th, 2011 press release.

Alan Clegg, a Qualified Person as defined by National Instrument 43-101, has reviewed and verified the technical information contained in this release.

Forward-looking statements

The statements made in this press release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

About Red Crescent Resources

Red Crescent Resources (TSX:RCB) is a Turkey-based junior mining company targeting historically inaccessible areas where no modern application of exploration techniques or technology has been applied, with high potential for discovery of significant base metal deposits. For more information, please visit:

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