Shear Minerals Ltd.

Shear Minerals Ltd.

November 02, 2005 18:37 ET

Shear Announces Effective Date of Spin-out Transaction of Kaminak Gold

EDMONTON, ALBERTA--(CCNMatthews - Nov. 2, 2005) - Shear Minerals Ltd. (TSX VENTURE:SRM) today announced that the distribution of the common shares of Kaminak Gold Corporation to holders of Shear common shares on the basis of one Kaminak common share for each five common shares of Shear in terms of the spin-out transaction will occur on November 9, 2005. Holders of Shear common shares of record at the close of business on November 8, 2005, will be entitled to receive Kaminak common shares pursuant to the spin-out transaction.

Kaminak is a combination of the non-diamond assets of the privately held Hunter Exploration Group together with the non-diamond assets of Shear. As a result, Kaminak holds one of the largest land positions in Canada devoted to metallic mineral exploration. Kaminak's Nunavut and British Columbia projects offer world-class exploration potential and present exposure to strategic commodities including, gold, uranium and nickel.

Kaminak is taking advantage of unique agreements with Shear and Indicator Minerals Inc. whereby Kaminak can use large technical datasets from both companies for non-diamond exploration. Access to this information is at no cost to Kaminak.

Through these agreements Kaminak has gained free access to over 10,500 archived till samples and 75,000 line kilometers of high-resolution airborne geophysics, as well as GIS databases, geological maps and compilations. Till sampling has proven to be an invaluable tool for gold exploration at Meliadine in Nunavut. Analyzing archived till samples for gold will help Kaminak generate new gold targets in this gold district. These agreements have given the Company exposure to more than $20 million worth of third party expenditures.

The Board of Directors of Kaminak will initially be comprised of five members, three appointed by Hunter and two appointed by Shear. John Robins P.Geo., has will be the President and CEO of Newco. The exploration team will be led by Rob Carpenter Ph.D., P.Geo., an experienced geologist who has worked extensively in gold and base metal exploration throughout Nunavut.

Kaminak's holdings also include the uranium rights to a 75 kilometer strike length of the Baker Lake unconformity. Minor historical work on Kaminak's ground identified over 25 individual uranium showings which remain untested. Kaminak also owns 100% of nine properties located in Nunavut and British Columbia and also holds a 20% interest in the Matrix Gold Project located in Nunavut. The Matrix Gold Project is currently under option to global gold producer Newmont Mining Ltd. This project is focused on discovering analogues to the prolific Witwatersrand gold deposits of South Africa. Kaminak's projects range from early stage grassroots level to drill ready targets and are located in regions with proven exploration potential.

The common shares of Kaminak have been conditionally approved for listing by the TSX Venture Exchange subject to Kaminak meeting minimum listing requirements for resource issuers. Kaminak intends to close a private placement on November 9, 2005 immediately following the spin-out transaction and thereafter submit final documentation to the TSX Venture Exchange.

Shear Minerals Ltd. is a Canadian-based exploration company focused on diamond exploration in the Canadian North where it explores in established diamond districts and has discovered new ones. Shear currently has a portfolio of eight diamond projects, seven of which are drill-ready. The Company has advanced its 51%-owned Churchill Diamond property in Nunavut from a conceptual grassroots project to a new kimberlite district.

This news release contains forward-looking statements regarding ongoing and upcoming exploration work and expected geology, geological formations and structures. Actual results may differ materially from those anticipated in these statements.

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

Contact Information