Sona Resources Corporation

Sona Resources Corporation

March 11, 2015 19:19 ET

Sona Disputes Civil Claim Filed by Illidge and White Over Elizabeth Option Agreements

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 11, 2015) - Sona Resources Corp. ("the Company" or "Sona") (TSX VENTURE:SYS) reports that it has received a Notice of Civil Claim (the "Notice") filed in the Supreme Court of British Columbia for the termination of two Option Agreements (dated May 23, 2002), comprising one mineral claim and four Crown-granted claims that make up a portion of the Elizabeth Gold Deposit Property (the "Property"). The Notice was filed by the legal counsel for Optionors David Davis White and Tom Illidge. A copy is available on Sona's website in the Downloads section.

In the Notice, the Optionors allege that the Option Agreements are in default and seek an order for their termination. The Notice alleges two key defaults: that the Company did not make advanced royalty payments on the anniversary date; and that it failed to deliver a "Bankable Feasibility Study" in a timely manner, which gives them legal grounds to terminate the Option Agreements.

Sona takes the position that this represents a weak and frivolous attempt to arbitrarily terminate the agreements for the Optionors' advantage. The contracts do not specify time periods for default, nor do they specify termination as a remedy. The Company believes it is not in default of the Option Agreements.

In fact, Sona did make the advanced royalty payment within the year 2014, but not on the agreement anniversary, May 23. The completion of a Bankable Feasibility Study is not a straightforward process, but rather a complex legal matter. Moving toward a Bankable Feasibility Study, the Company was diligent in pursuing exploration and development programs on the Property, as recommended by professional geoscientists and engineers; and it has spent in excess of $6.8 million to advance the Property toward gold production.

Sona will file a Response to Civil Claim with the court to respond to each of those claims, and to dispute that it is in default of the Options Agreements. The Company will vigorously defend its rights to enforce these agreements in their entirety, and it will take legal action to recover any costs and damages resulting from this spurious action. Sona will provide a detailed review of the matter in a future news release.

About Sona Resources Corp.

Sona is a junior gold resource company based in Vancouver, with a focus on bringing its Blackdome-Elizabeth Gold Project into full commercial production. Since its inception in 1990, Sona has engaged in a wide range of mineral exploration activities in Canada, Mexico and the United States, as well as small-scale gold production.

Sona owns a 100 percent interest in the former Blackdome Gold Mine in south-central British Columbia, 250 kilometres north of Vancouver; and the Elizabeth Gold Deposit Property, 30 kilometres south of Blackdome. Four crown grants and one mineral claim on the Elizabeth property are subject to option agreements. At Blackdome, the mineral resources are estimated to be 144,500 tonnes, grading 11.29g Au/t and containing 52,500 oz. gold, indicated; and 90,600 tonnes, grading 8.79g Au/t and containing 25,900 oz. gold, inferred (news release dated May 4, 2010). At Elizabeth, Sona has outlined an inferred gold resource of 523,000 tonnes, grading 12.26g Au/t and containing 206,100 oz. gold (news release dated June 8, 2009).

Mineral resources that are not mineral reserves do not have demonstrated economic viability.

On behalf of the Board,

Nick Ferris, Executive Chairman

This news release contains certain forward-looking statements, and such statements involve risks and uncertainties. The results or events predicted may differ materially from actual results or events. Any forward-looking statement speaks only as of the date of this news release. Except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results, or any other occurrence.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Neither the 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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