Savant Explorations Ltd.

Savant Explorations Ltd.

July 22, 2009 09:28 ET

Savant Grants Selwyn Option on Vinata Property in Mexico and Plans Drilling

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 22, 2009) - Savant Explorations Ltd. (TSX VENTURE:SVT)("Savant") is pleased to announce that it has reached an agreement under which Selwyn Resources Ltd. ("Selwyn") may acquire an interest in Savant's Vinata Property located in North Central Mexico. The acquisition agreement grants Selwyn an option to acquire an initial 50% interest in the Vinata Property and upon exercising that option, an option for Selwyn to increase its interest to 55% by making additional expenditures. Selwyn is committed to a minimum US$500,000 exploration expenditure by January 15, 2010. The planned work program includes 1800 metres of drilling to commence in late September to test several prime targets for high grade silver-zinc-lead mineralization. The acquisition of an interest in the Vinata Property by Selwyn is subject to receipt by the parties of required regulatory approvals and to completion of final documentation.

The option agreement with Selwyn provides Savant shareholders with the opportunity to test an exciting silver-lead-zinc target without the excessive shareholder dilution of a financing under current market conditions while maintaining a significant ownership of the project. Savant will be the operator during the initial program.

The Vinata Property is located in North Central Mexico in the prolific Central Mineral Belt that hosts numerous large silver-zinc-lead deposits at Bismark, Santa Eulalia and Naica. The Vinata Project has excellent potential for the discovery of a new major silver-zinc-lead deposit within the mining districts of Santa Eualia and Naica mining district in the State of Chihuahua. Collectively, these mines have produced more than 750 million ounces of silver and significant zinc and lead.

Acquisition Terms

Selwyn will acquire an initial 50% interest in the Vinata Property through the acquisition of shares of a wholly owned subsidiary of Savant by providing US$1,000,000 for expenditures on the Vinata Property over a period of 30 months and by making a cash payment of Cdn$100,000 on completion of the earn-in expenditures. A condition of the option is that Selwyn commit to make expenditures of US$500,000 before January 15, 2010. Upon vesting the initial 50% interest, Selwyn will have an exclusive option to acquire an additional 5% interest in the Vinata Property by providing an additional US$500,000 for expenditures on the Vinata Property by August 15, 2012 and by making an additional cash payment of Cdn$100,000 to Savant.

In addition, Selwyn has agreed to participate up to Cdn$50,000 in a future equity offering of Savant. Selwyn currently owns 8,196,667 shares of Savant representing 32.9% of the issued shares and has warrants to acquire an additional 4,981,667 shares. Under the terms of the agreement, Selwyn will not increase its ownership of Savant during the option period without the approval of Savant's Independent Directors.

The Vinata Property is subject to a purchase agreement between Savant and Minera Gama S.A. de C.V. (see Savant news release of June 11, 2009) which includes aggregate cash purchase payments of US$2,635,000 and granting of a royalty of 2% of Net Smelter Returns which can be reduced to 1% NSR upon making payments of US$1,000,000. Minera Gama, S.A. de C.V. subsequently transferred its interest to Minera Cima S.A. de C.V. in the first quarter of 2009.

Vinata Property

Vinata is a large property covering approximately 89 square kilometres and represents a rare opportunity to acquire a large property position associated with the surface expression of a potential new district scale discovery. The local geology and alteration show many similarities to the Santa Eulalia District, 55 kilometres to the north, which hosts numerous silver-zinc-lead deposits within Upper Cretaceous limestones.

Mining at Santa Eulalia has occurred in a number of structural trends over a strike length of approximately 3000 metres and up to 800 metres of vertical extent. Alteration extends into the overlying Tertiary volcanic rocks and is characterized by extensive clay alteration and manganese mineralization with lesser amounts of silver, zinc and lead. Aggregate production at Santa Eulalia exceeds 500 million ounces of silver.

Historic mining on the Vinata Property was focused on mining of argentiferous manganese oxide mineralization within a number of linear, structurally controlled vein and breccia bodies within Tertiary volcanic rocks that immediately overlie Upper Cretaceous limestones, similar to that at Santa Eulalia. The surface mining of argentiferous manganese oxide mineralization has occurred intermittently over a north westerly trend of approximately 3000 metres.

Mapping on Vinata by Savant identified well defined vein-breccia structures flanked by extensive clay altered volcanic rocks hosting anomalous silver, zinc and lead in micro veinlets of carbonate and manganese. This alteration and mineralization is interpreted to be the uppermost part of a carbonate replacement silver - lead - zinc mineralizing system. An initial 1800 metres of drilling is planned to begin in late September to test the continuity of the mineralized structures and the possible occurrence of manto and chimney type mineralization at depth. Typically, the upper parts of these mineralized systems are silver rich with massive sulphides of lead and zinc. The upper parts of these mineralized bodies commonly occur in the upper part of the Cretaceous limestone strata which at this location is covered by strongly altered Tertiary volcanic rocks and the manganese-silver mineralization that typifies the Santa Eulalia mineralization.

John McClintock, P. Eng, President Savant Explorations Ltd. is the Qualified Persons, as defined by National Instrument 43-101, responsible for the technical data in this news release.

This news release contains forward-looking statements concerning the Vinata Property. These statements are based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of failure to obtain necessary regulatory approvals, the failure to reach agreement on final documentation, exploration results and other risk factors that are beyond Savant's control. There can be no assurance that such forward-looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release.

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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