Santoy Resources Ltd.
TSX VENTURE : SAN

Santoy Resources Ltd.

April 03, 2007 09:49 ET

Santoy Enters Agreement to Sell Three CMB, Labrador Properties to Mega Uranium Ltd.

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 3, 2007) - Santoy Resources Ltd. (TSX VENTURE:SAN)("Santoy") is pleased to announce it has entered into an agreement with Mega Uranium Ltd. ("Mega") to sell all of Santoy's right, title and interest in three properties in the Central Mineral Belt("CMB"), Labrador. Under the agreement, Mega will acquire the West Michelin, West Micmac and Gravelly River projects (the "Projects") from Santoy in exchange for 400,000 common shares of Mega. A pre-existing 2% net smelter return royalty payable to Geotest Corporation on 352 of the 1,375 claims will be reduced to 1% in consideration of 15,000 shares of Mega payable to Geotest by Santoy. The acquisition is subject to the approval of the Toronto Stock Exchange.

The Gravelly River property lies immediately southeast of the Bruce River property (which is jointly owned by Santoy and Monster Copper Corporation and is underlain predominantly by intrusive rocks of the Trans Labrador Batholith. A belt of Bruce River Group rocks and Moran Lake Group equivalents occurs in the northern part of the property. The West Micmac and West Michelin are two almost contiguous properties underlain mostly by granite of various ages, immediately west of the Aillik Group stratigraphy. Santoy flew a radiometric/magnetic survey in 2005 and conducted extensive prospecting in 2006 over all three of these properties.

Santoy also announces that elsewhere within the CMB, drilling is progressing on the Fish Hawk Lake Zone on Santoy's 100% owned Anomaly 7 property. To date, a total of 3 drill holes have been completed with the first two holes undercutting Trench #1 (see news release dated Nov. 23, 2006). Holes 3 and 4 are located on the same trend, 50 metres to the northeast. The next setup will undercut Trench #2 with two drill holes. A total of 20 short holes are presently planned for Fish Hawk Lake South and North zones.

The Qualified Person, as defined by National Instrument 43-101, responsible for review of this news release is Ron Nichols, P.Geo., Vice-President of Exploration.

About Santoy

Santoy Resources Ltd. is a Canadian mining exploration company focused primarily on the energy sector. Emphasis is being placed on uranium projects in British Columbia, Saskatchewan, Manitoba, Otish Mountains of Quebec and the Central Mineral Belt of Labrador; and on coal and coal bed methane in Western Canada. A description of our properties, including maps and photographs can be viewed on the Company's website at www.santoy.ca.

On Behalf of the Board of Directors

SANTOY RESOURCES LTD.

Ron Netolitzky, President

Cautionary Statement on Forward-Looking Information

The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Santoy Resources Ltd.
    Ron Netolitzky
    President
    (604) 669-4799
    or
    Santoy Resources Ltd.
    Tony Perri
    Investor Relations, Manager
    (604) 669-4799
    or
    Santoy Resources Ltd.
    Suite 611, 675 W. Hastings Street
    Vancouver, British Columbia, Canada V6B 1N2
    (604) 669-4799
    (604) 669-2543 (FAX)
    Website: www.santoy.ca