Sphere Resources Inc.
TSX VENTURE : SPH.H

Sphere Resources Inc.

January 27, 2011 11:40 ET

Sphere Resources Inc. Enters Into a Sale and Purchase Agreement to Buy All of Global Minerals Ltd Interest in the Dome Property, Red Lake Ontario

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 27, 2011) - Sphere Resources Inc. (the "Company") (TSX VENTURE:SPH.H) is pleased to make the following announcement:

As advised in the Company's press release of 26th November 2009 the Company entered into a Letter of Intent with Global Minerals Ltd ("Global") (which was subsequently superseded by the "Global Option Agreement" date March 7, 2010) in respect to Mining claims at the Dome, Byshe and Heyson Townships in the Red Lake district of Ontario. Global is the beneficial owner of 100% of the rights, title and interest in and to 13 mining claims (34 units) situated in Red Lake, Ontario; known as the "Dome Properties" and described in detail below.

The Company further advised in a press release of March 11, 2010 that it entered into an agreement dated March 7, 2010 (the "Duncan Park Option Agreement") granting to Duncan Park Holdings Corporation ("DPHC") an option to acquire a 75% interest in the Dome Properties, which specifies the requirements of that earn-in, and pursuant to which the Company has the right to claw back 51 percentage points for four times the Duncan Park expenditures, subject to a 2% net smelter royalty ("NSR") held by the original property owners, one percent of which may be acquired for $1,750,000 and one percent of which is subject to a right of first refusal in favour of the Company and Duncan Park.

The Company has decided to purchase the Dome Properties from Global and acquire all of Global's rights, titles and interest to the Dome Properties, which remain subject to the Duncan Park Option Agreement and the Global Clarification Agreement, also executed on March 7, 2010. Upon completion of the purchase and sale of the Dome properties the Duncan Park Option Agreement and the Global Clarification Agreement shall continue to be in full force and effect.

The terms of the Sale and Purchase Agreement are as follows:

(a) The Company will pay Global $75,000 in cash, of which Global acknowledges that $50,000 has already been paid and that, therefore, only $25,000 in cash remains payable by the Company to Global.
   
(b) The Company will issue to Global a total of 6,000,000 Common Shares of the Company at a deemed price of $0.05 per share, of which Global acknowledges that 1,000,000 Common Shares of the Company have already been issued and that, therefore, only 5,000,000 Common Shares of the Company remain issuable to Global.

Within 14 days of Sphere receiving approval from the NEX Board of the TSX Venture Exchange, which approval the Company shall expeditiously seek and obtain.

(a) Global shall deliver to the Company the recordable Bills of Sale or other applicable conveyancing documentation sufficient to effect the transfer to the Purchase of a 100% beneficial interest in and to the Dome Properties. The Company shall attend to the registration of the transfer of the Dome Properties in favour of the Company or its nominee.
   
(b) The Global Option Agreement shall be deemed terminated and shall cease to be in force and effect and all obligations of the Company under the Global Option Agreement (including, without limitation, obligations to incur exploration expenditures on the Dome Properties) shall cease, and all Global's rights and interests shall cease.

Dome Properties

Mining Division: Kenora, Ontario, Canada

Claim Number Township Recorded Holder   Recording Date Claim Due Date Status Units Area
(ha)
  Work Required Total Reserve
1248398 Byshe Global (100%)   2002-Aug-13 2011-Aug-13 Active 13 208   $ 5,200 $ 10,607
4205246 Byshe Global (100%)   2006-Aug-21 2011-Aug-21 Active 2 32   $ 800 $ 2,400
1184340 Dome Global (100%)   1995-Sep-26 2011-Sep-26 Active 4 64   $ 1,600 $ 14,306
1185118 Dome Global (100%)   2000-Aug-04 2011-Aug-04 Active 1 16   $ 400 $ 2,951
1234240 Dome Global (100%)   2001-Jun-07 2011-Jun-07 Active 2 32   $ 800 $ 4,051
1234241 Dome Global (100%)   2001-Jun-07 2011-Jun-07 Active 3 48   $ 1,200 $ 6,086
1234520 Dome Global (100%)   2000-Aug-10 2011-Aug-10 Active 1 16   $ 400 $ 18,038
1234521 Dome Global (100%)   2000-Aug-10 2012-Aug-10 Active 1 16   $ 400 $ 2,127
1234522 Dome Global (100%)   2000-Aug-10 2011-Aug-10 Active 3 48   $ 1,200 $ 6,181
1247884 Dome Global (100%)   2003-Jun-16 2011-Jun-16 Active 1 16   $ 400 $ 2,000
3004404 Dome Global (100%)   2004-Feb-25 2011-Feb-25 Active 1 16   $ 400 $ 2,400
1248071 Heyson Global (100%)   2001-Oct-17 2011-Oct-17 Active 1 16   $ 400 $ 1,270
3004443 Heyson Global (100%)   2004-Feb-25 2011-Feb-25 Active 1 16   $ 400 $ 2,400
TOTAL             34 544   $ 13,600 $ 74,817

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.

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

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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