Sniper Resources Ltd.
TSX VENTURE : SIP

Sniper Resources Ltd.

January 04, 2011 09:30 ET

Sniper Negotiates Property Extensions

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 4, 2011) - Sniper Resources Ltd. (TSX VENTURE:SIP) ("Sniper" or the "Company") is pleased to announce that it has entered into extension agreements with Columbus Gold (US) Corporation in respect of the Company's Overland Pass and Guild properties located in Nevada, USA.

The Company, through its wholly owned subsidiary Sniper Resources (U.S.) Inc., has the right to earn a 51% interest in each of Overland Pass and Guild by incurring an aggregate of US$2,000,000 in exploration expenditures on each property. The Company can earn an additional 19% interest in each property by completing a positive feasibility study on each property.

Pursuant to the terms of the extension agreements, Sniper must satisfy the following modified work commitments in respect of each property to maintain its option to earn a 51% interest in each property.

Overland Pass Property

Sniper agrees to spend a minimum of US$850,000 on exploration of the Overland Pass property on or before December 31, 2011, of which US$350,000 is a binding commitment that cannot be cancelled through termination of the agreement, and an additional US$1,150,000 on exploration of the Overland Pass property on or before December 31, 2012.

Guild Property

Sniper agrees to spend a minimum of US$700,000 on exploration of the Guild property on or before December 31, 2011, of which US$200,000 is a binding commitment that cannot be cancelled through termination of the agreement, and an additional US$1,300,000 on exploration of the Guild property on or before December 31, 2012.

In consideration for the extensions, Sniper will issue 300,000 common shares to Columbus Gold Corporation, the parent company of Columbus Gold (US) Corporation, within five business days following receipt of approval of the extension agreements by the TSX Venture Exchange.

"The Company is pleased to have negotiated these extensions on such favourable terms. The expenditure targets are reasonable and achievable both in dollar amount and time frame which is positive for the Company and its shareholders," said Doug McGibbon, Vice President of Exploration.

Sniper Resources Ltd.

Scott Baxter, Chief Executive Officer

This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements relating to future plans, objectives or expectations of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include risks relating to the actual results of current exploration activities, fluctuating gold prices, possibility of equipment breakdowns and delays, exploration cost overruns, availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.

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