UC Resources Ltd.

UC Resources Ltd.

November 24, 2009 09:30 ET

UC Resources Vests With 40% Interest in Option Agreement, Continues Drilling at McFaulds Lake Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 24, 2009) - UC Resources Ltd. ("UC" or "the Company") (TSX VENTURE:UC) is pleased to provide the following corporate update regarding the McFaulds Lake properties in the James Bay Lowlands region of northern Ontario, the properties form part of the "Ring of Fire" exploration play.

UC Resources Ltd. recently completed in excess of $3.25 million spending commitment as required under the terms of an Option agreement signed on March 6, 2009 (based upon a Letter of Intent ("LOI") originally signed on March 6, 2007) between Spider Resources Inc. (TSX VENTURE:SPQ) ("Spider") and KWG Resources Inc. (TSX VENTURE:KWF) ("KWG"). The third year minimum expenditure requirement was completed prior to the third anniversary date of the original LOI being March 6, 2010, pursuant to the Option agreement.

As previously announced on August 27, 2007, UC had advised Spider and KWG that it had completed the third year spending requirement on the McFaulds Lake option agreement and delivered unaudited proof thereof to them. Spider has recently completed the review of the submitted expenditures, along with the supporting technical reports and in Spider's opinion UC has expended sufficient qualifying funds to earn the 40% interest prior to the agreed upon anniversary date of March 6, 2010.

As per the option agreement dated March 6, 2009 between UC, Spider and KWG; UC has an option to incur additional exploration expenditures of $1.25 million on or before the fourth anniversary date of March 6, 2011, in order to earn an additional 15% vested interest in the Property, bringing UC's interest level to 55%. UC has also advised both Spider and KWG that they intend to exercise their full optional rights with respect to the McFaulds Lake Project Property Joint Venture Agreement , whereby they will earn-in up to a 55% undivided interest in the property. The fourth and final year earn in expenditure to earn the additional 15% interest is underway.

UC would also like to advise that drilling has resumed in the James Bay Lowlands and will involve a multi-hole drill program to be completed prior to the Christmas break. Drilling commenced on November 22, 2009. Assay results from the recent drill program that commenced in mid October (announced October 18, 2009) consisting of 4 holes at McFaulds West property are pending and will be released upon receipt.

On behalf of the Board,

Jim Voisin, President & CEO

UC Resources Ltd.

Investors are invited to visit the UC Resources IR Hub at http://www.agoracom.com/ir/UCResources where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to UC@agoracom.com where they can also request to be added to the investor e-mail list to receive all future press releases and updates in real time.

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's registered filings what are available at www.sedar.com.

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

Contact Information

  • UC Resources Ltd.
    Damien Lowery
    Vancouver Head Office
    Toll Free: 1-800-366-8566 (Canada & USA) or (604) 681-7265
    (604) 608-6163 (FAX)