Thundermin Resources Inc.
TSX : THR

Thundermin Resources Inc.

December 07, 2010 16:35 ET

Thundermin Initiates Arbitration Proceedings Against Alexis With Respect to Thundermin's Pelletier Lake Gold Deposit

TORONTO, ONTARIO--(Marketwire - Dec. 7, 2010) - Thundermin Resources Inc. ("Thundermin") (TSX:THR) announces that it has initiated arbitration proceedings against Alexis Minerals Corporation ("Alexis") with respect to Thundermin's Pelletier Lake Gold Deposit ("Deposit") which is located in Rouyn-Noranda, Quebec.

Under the terms of an option agreement dated September 1, 2005, as amended (the "Agreement"), Alexis had until August 31, 2010 to exercise its Option to acquire the Pelletier Lake property by making a Production Commitment to Thundermin to place the Deposit into Commercial Production and had until August 31, 2011 to achieve Commercial Production. Upon the achievement of Commercial Production, Thundermin is entitled to receive a 2.5% net smelter returns royalty on all production from the property.

On August 31, 2010, Thundermin received a letter from Alexis (the "Notice") advising Thundermin that Alexis was exercising its Option to acquire the Pelletier Lake property by making a Production Commitment to Thundermin to place the Deposit into Commercial Production. At a meeting between the parties held on September 9, 2010 and confirmed by letter dated September 13, 2010, Thundermin advised Alexis that it was not prepared to accept the Alexis Notice as a valid Notice under the Agreement. As reported in Thundermin's MD&A for Q3-2010, an agreement in principle to grant Alexis an extension until December 31, 2011 to exercise its Option was reached between the parties on November 8, 2010. Subsequent discussions between the parties, however, have failed to resolve certain significant differences and, as per the provisions in the Agreement, Thundermin notified Alexis on December 6, 2010 that it intends to arbitrate the dispute with the aim of regaining complete control of the Pelletier Lake gold property.

Measured and Indicated Resources at Pelletier Lake are estimated by Alexis to be 279,442 t grading 8.61 g/t Au (77,372 oz Au) at a cut-off grade of 5.5 g/t Au. Inferred Resources are estimated to be 419,514 t grading 8.37 g/t Au (112,899 oz Au) at a cut-off grade of 5.5 g/t Au. This resource estimate was prepared by Mr. Martin Peron, Eng., Superintendent of Geology, Pelletier Lake for Alexis and Q.P. as defined under NI 43-101.

Alexis completed an underground exploration program at Pelletier Lake during Q4-2009 designed to confirm the resource model and to extract an approximate 25,000 t bulk sample for metallurgical testing purposes. The bulk sample was processed during three milling campaigns and produced approximately 3,443 oz. of payable gold with an overall gold recovery of 96.5%. On September 8, 2010, Thundermin received a cash payment of $101,425 from Alexis in consideration of Thundermin's 2.5% NSR royalty on gold produced from the bulk sample.

About Thundermin

Thundermin is a Canadian-based mineral exploration company focused on the exploration for and the discovery of economically viable base metal and gold deposits in Canada. Thundermin has an interest in, or the right to earn an interest in 11 base metal and gold properties in Canada. The most significant of these is the Little Deer copper property in the Springdale area of Newfoundland where Thundermin and 50% joint venture partner Cornerstone Resources Inc. have outlined Inferred Mineral Resources of 1,150,500 tonnes grading 2.8% copper and Indicated Mineral Resources of 2,335,500 tonnes grading 2.1% copper. Thundermin also has royalty interests in a further 28 base metal and gold properties located in Manitoba, Saskatchewan, British Columbia and Quebec, the most significant being a 2.5% net smelter return royalty in the Pelletier Lake Gold Deposit. Thundermin also has various shareholdings in thirteen other junior resource companies that are actively exploring for base metal, gold, chrome, vanadium-titanium and diamond deposits in Canada.

Forward-Looking Statements

This news release may contain "Forward-Looking Statements" that involve risks and uncertainties, such as statements of Thundermin's plans, objectives, strategies, intentions and expectations. The words "potential," "anticipate," "forecast," "believe," "estimate," "expect," "may," "project," "plan," and similar expressions are intended to be among the statements that identify "Forward-Looking Statements". Although Thundermin believes that its expectations reflected in these "Forward-Looking Statements" are reasonable, such statements may involve unknown risks, uncertainties and other factors disclosed in our regulatory filings that can be viewed on the SEDAR website at www.sedar.com. For us, uncertainties arise from the behavior of financial and metals markets and from numerous other matters of national, regional, and global scale, including those of an environmental, climatic, natural, political, economic, business, competitive, or regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our "Forward-Looking Statements". Although Thundermin believes the facts and information contained in this news release to be as correct and current as possible, Thundermin does not warrant or make any representation as to the accuracy, validity or completeness of any facts or information contained herein and these statements should not be relied upon as representing its views subsequent to the date of this news release.

For further information on Thundermin Resources Inc. please visit Thundermin's website at www.thundermin.com or the SEDAR website at www.sedar.com.

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