United Reef Limited

United Reef Limited

January 25, 2010 09:15 ET

United Reef Options Nixon-Bartleman Property in West Timmins Area

TORONTO, ONTARIO--(Marketwire - Jan. 25, 2010) - United Reef Limited (TSX VENTURE:URP) ("United Reef" or the "Company") is pleased to announce that it has entered into a definitive option agreement to acquire a 70% interest in nineteen contiguous mining claims (4 patented and 15 unpatented claims) making up the Nixon-Bartleman gold property. The claims cover a total area of approximately 313 ha (773 acres) and are located in Keefer and Hillary Townships in the Abitibi Greenstone Belt of northeastern Ontario. The four patented claims in the centre of the property cover the historic Nixon-Bartleman gold showing. The property is currently owned by Casey Enterprises Inc. (the "Optionor"), a private Ontario company. United Reef has retained an independent consultant to make a site visit to the property, to prepare a compilation report of historic exploration work completed on the property and to make recommendations for future work. The following has been summarized from his preliminary findings.

The Nixon-Bartleman property lies within the West Timmins mining area, in the western part of the Timmins Gold Camp. Since the first discovery in 1909, this famous gold camp has produced in excess of 66 million ounces of gold from approximately 50 operating mines. Until recently, the West Timmins area has not been well explored. Following the exploration success of companies such as Lakeshore Gold Corp., the area has become a major exploration camp as a host of exploration companies have acquired ground and are in the early stages of evaluating numerous historical gold prospects and carrying out programs in search of new discoveries. Most of the known deposits in the Timmins camp are spatially related to a major regional fault structure referred to as the Porcupine-Destor Deformation Zone (PDDZ). The deposits occur in Archean aged meta-volcanic rocks although they are typically accompanied by metasedimentary rocks, quartz-feldspar porphyritic and ultramafic intrusive rocks. Almost all known deposits of this type are hosted within shear zones and are accompanied by quartz-carbonate alteration.

The Nixon-Bartleman gold prospect is located within a narrow band of volcanic and sedimentary rocks that are flanked on the north and south by tonalitic phases of a large granitic body, the Kenogamissi Batholith. The main gold occurrences on the Nixon-Bartleman property are centered approximately 22 km southwest of Lakeshore's West Timmins mine and 10 km from their west claim boundary. The PDDZ structure is not precisely delineated in this area because of overburden cover and the lack of detailed geological mapping, but all available government geological maps show this zone passing through the center of the Nixon-Bartleman claim group.

The Optionor has granted United Reef the right and option, subject to regulatory approval, to acquire a 70% interest in the Nixon-Bartleman property whereby United Reef will make exploration expenditures totalling $150,000 on the property over a period of three years, make cash payments totalling $50,000 and issue 2,300,000 common shares of the Company over the three year term of the option. Upon United Reef vesting a 70% interest in the property, the parties will form a joint venture for the exploration and development of the property with United Reef having a 70% interest and being the operator and the Optionor having a 30% interest. The property is subject to a 2% net smelter royalty held by a former property owner.

United Reef will be required to make minimum exploration expenditures of $50,000 during the first year of the option and will make initial cash payment of $10,000 and issue 1,100,000 common shares of United Reef to the Optionor upon receipt of regulatory approval for the transaction. The transaction is also subject to completion of other due diligence matters including receipt of a title opinion. The common shares proposed to be issued pursuant to the agreement referred to above, will be subject to regulatory re-sale restrictions of four months after the date of issuance.

The acquisition of the Nixon-Bartleman option continues to further United Reef's objective of being a focused precious metal explorer in Canada. The Company is continuing to evaluate additional gold projects. Additional drilling results from the Company's Nickel Offsets property are expected in the near future.

Mr. Seymour Sears, P. Geo., an independent consultant to the Company has reviewed the technical content of this Press Release.

Shares issued: 84,119,980

Fully diluted: 102,161,030

Neither 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 release.

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