Trueclaim Exploration Inc.
TSX VENTURE : TRM
OTCQX : TRMNF

June 16, 2011 11:48 ET

Trueclaim Exploration Inc. Signs Option on the Linear Gold Property, Newfoundland

LONDON, ONTARIO--(Marketwire - June 16, 2011) - Trueclaim Exploration Inc. (the "Company") (TSX VENTURE:TRM)(OTCQX:TRMNF), an explorer and developer of precious and base metals projects, is pleased to announce that it has signed an option agreement (the "Option") with Krinor Resources Inc. and ASK Prospecting and Guiding Inc. (the "Optionors") to acquire 100% of 59 claims (approx. 1,475 ha) known as the Linear Property, located 15 km west of Gander, Newfoundland. The Property covers a portion of the Appleton Linear, a north-northeast trending structure that extends more than 30 km in length, where high-grade gold mineralization in quartz veining and breccias has been discovered through prospecting and subsequent diamond drilling.

For the Option to be fully exercised the Company must:

  1. pay to Krinor Resources Inc. $8,000 within five business days of the Effective Date of the Option;
  2. make a $25,000 cash payment to the Optionors and issue 150,000 common shares of the Company to the Optionors within five business days of the Effective Date of the Option;
  3. make a $25,000 cash payment to the Optionors and issue 150,000 common shares of the Company to the Optionors and incur $250,000 of exploration and development expenditures on or before the first anniversary of the Effective Date of the Option;
  4. make a $60,000 cash payment to the Optionors and issue 210,000 common shares of the Company to the Optionors and incur $400,000 of exploration and development expenditures on or before the second anniversary of the Effective Date of the Option;
  5. make a $80,000 cash payment to the Optionors and issue 240,000 common shares of the Company to the Optionors and incur $700,000 of exploration and development expenditures on or before the third anniversary of the Effective Date of the Option.

The Option Agreement is also subject to a three percent (3.0%) Net Smelter Return royalty. The Company will have the right to purchase fifty percent (50%) of the Net Smelter Return royalty at any time for $1,500,000. The transaction is subject to acceptance by the TSX Venture Exchange. The Company intends to transfer for consideration its right under the Option Agreement to a third party that will fund the option and work commitments.

We seek safe harbour.

John Carter, President

This news release contains "forward-looking information" (within the meaning of applicable Canadian securities laws) and "forward-looking statements" (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995). Such statements or information are identified with words such as "anticipate", "believe", "expect", "plan", "intend", "potential", "estimate", "propose", "project", "outlook", "foresee" or similar words suggesting future outcomes or statements regarding an outlook. Such statements include, among others, those concerning the Option). All statements in this news release, other than statements of historical facts, which address future production, reserve potential, exploration activities, financing plans, objectives or goals, and events or developments that the Company expects, are forward-looking statements. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Such forward-looking information or statements are based on a number of risks, uncertainties and assumptions which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect. Assumptions have been made regarding, among other things, management's expectations regarding its ability to complete its exploration and development work as expected. Actual results could differ materially due to a number of factors, including, without limitation, operational risks in the completion of the Company's continued development work, technical, safety or regulatory issues, market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Although the Company believes that the expectations reflected in the forward-looking information or statements are reasonable, prospective investors in the Company's securities should not place undue reliance on forward-looking statements because the Company can provide no assurance that such expectations will prove to be correct. Actual results or developments may differ materially from those projected in the forward-looking statements. Such risks include expectations that may be raised by discussing potential mine types and by comparing the Company's projects to other projects. Also, in order to proceed with the Company's exploration and acquisition plans, additional funding is necessary and, depending on market conditions, this funding may not be forthcoming on a schedule or on terms that facilitate the Company's plans.Forward-looking information and statements contained in this news release are as of the date of this news release and the Company assumes no obligation to update or revise this forward-looking information and statements except as required by law.

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 news release.

Contact Information

  • Trueclaim Exploration Inc.
    John Carter
    519-913-8008
    1-888-686-1405 (FAX)
    www.trueclaim.ca