Sphere Resources Inc.

Sphere Resources Inc.

December 06, 2010 11:18 ET

Sphere Resources Inc. (the "Company") Enters Into Agreement to Acquire the McManus Property in Dome Township, in the Red Lake Mining District of Ontario

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 6, 2010) - Sphere Resources Inc. NEX Board of the TSX Venture Exchange (TSX VENTURE:SPH.H) is pleased to make the following announcement:

The company has entered into an Agreement with Camp McMan Red Lake Gold Mines Limited of Red Lake, Ontario (the "Vendor") to acquire 100% interest in seventeen ( 17 ) patented mineral claims and eleven ( 11 ) licenses of occupation ("McManus Property"), covering approximately 325 hectares located in Dome Townships, in the Red Lake Mining District of Ontario.

The McManus Property is located approximately 5 kms northeast of the town of Red Lake.

The McManus Property adjoins the company's Dome Property from the north of the south eastern block and to the east from the north western block. The McManus Property also adjoins Mega Precious Metal's Headway property at its south western border where Mega is drilling 2 holes of 3,000 meters each. For further important details of the Red Lake gold camp please go the Company's website at www.sphereresources.com.

Malcolm Stevens, CEO of Sphere Resources stated "We are pleased to be expanding our Red Lake endeavors in line with the company's strategy. The structural features of the McManus Property combine well with the larger Dome Property and will allow for a more uniform and cost effective exploration program from a land base bordering the Lake. Red Lake in northwestern Ontario remains one of the richest and most prolific producing gold camps in Canadian mining history with more than 30 million ounces of gold recovered."

The Company is planning a winter very deep Induced Polarization ( IP ) program to identify anomalies and drill the most highly prioritized targets on both the Dome and McManus property now referred to as the "Dome Property" and complete a drill program where we have identified two prospective targets for drilling on the south east block of the Dome Property in the months ahead.

The Company has agreed to purchase a 100% interest in the Claims for the following consideration:

Payment to the Vendor of $10,000 upon signing of the agreement and a further $25,000 and the issue of 300,000 common shares of the Company upon the signing of an option agreement and the transfer of claims to Sphere. 

On or before Dec. 15, 2011 the payment of $50,000 and the issue of 400,000 common shares.

On or before Dec. 15, 2012 the payment of $50,000 and the issue of 500,000 common shares.

On or before Dec. 15, 2013 the payment of $75,000 and the issue of 500,000 common shares, with a work commitment of $1,200,000 over the term of the agreement. For the $1,200,000 work commitment, only $100,000 is committed by December 15, 2011 the rest is optional. 

The Owner retains a three and one half percent (3.5%) Net Smelter Royalty, however, the Company has the right to reduce the 3.5% Net Smelter Royalty to 2% by payment of $500,000 for each one half percent (0.5%).

By virtue of the existing option agreement between Sphere and Duncan Park Holdings Corporation ("Duncan Park"), these properties lie within an area of interest which makes them subject to that agreement and obligates Duncan Park to pay Sphere 24% of its acquisition costs. (See Press Release dated March 11, 2010)

A finder's fee is payable in regards to this transaction.

About Sphere Resources Inc.

Sphere Resources Inc. is focused on identifying and appropriating exploration targets and other high quality assets in major global mining camps with a particular emphasis on precious metals. It is currently involved in exploring for gold mineralization in the Red Lake District of Ontario.

The proposed transaction remains subject to, among other things, receipt of all requisite Regulatory and other approvals, including the approval of the NEX board of the TSX Venture Exchange.

On behalf of Sphere Resources Inc
Malcolm L Stevens,
Executive Chairman and President

Statements in this press release other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute forward-looking statements. Forward -looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in mineral exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.

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

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