United Reef Limited
CNQ : URPL
TSX VENTURE : URP

United Reef Limited

May 13, 2008 09:00 ET

United Reef Signs Formal Agreement for Nickel Offsets Option With Ursa Major Minerals

TORONTO, ONTARIO--(Marketwire - May 13, 2008) - United Reef Limited (TSX VENTURE:URP)(CNQ:URPL) ("United Reef") is pleased to announce that it has entered into a formal option and joint venture agreement (the "Agreement") with URSA Major Minerals Incorporated (TSX:UMJ) ("URSA Major") whereby United Reef has granted URSA Major an option to earn a 70% interest in United Reef's wholly-owned Nickel Offsets property, located on the Foy Offset of the Sudbury Basin. The transaction follows the letter of intent entered into in March with URSA Major (see press release dated March 6, 2008).

United Reef has granted URSA Major an option to earn a 70% interest in the Nickel Offsets property whereby URSA Major will make exploration expenditures on the property totalling $1.25 million over a period of three years commencing March 28, 2008, the effective date of the Agreement, and make total cash payments of $75,000 to United Reef. URSA Major will be required to make a minimum expenditure of $250,000 during the first year of the option. The rate of expenditures during the second and third years of the option will be at the election of URSA Major with the right to accelerate their expenditures during the option period.

URSA Major has advised United Reef that they are finalizing plans for an initial exploration program on the property this summer. The program is expected to consist of bore hole electromagnetic testing and follow up drilling in selected areas, particularly down-plunge from previously mined ore shoots.

Upon URSA Major incurring $1.25 million in exploration expenditures and making payments totalling $75,000, the parties will form a joint venture for the further exploration and development of the property with URSA Major having a 70% interest and becoming the operator and United Reef having a 30% interest. Thereafter the parties will fund their respective pro rata interest in the joint venture for approved programs and expenditures. Once a joint venture is formed, United Reef may elect to fund its 30% interest in the joint venture or convert its interest to a 2% net smelter royalty and allow URSA Major to vest a 100% interest in the property. Should United Reef elect to convert its interest to a net smelter royalty, URSA Major has the right thereafter to purchase 1% of the royalty from United Reef for consideration of $1 million at any time. In the event that URSA Major fails to make the cash payments and incur $1.25 million of expenditures on or before the third anniversary of the Agreement, their option will terminate and the property will revert to United Reef.

URSA Major is an emerging mining company focused on growth through nickel, copper, and precious metal exploration and development, primarily in Ontario. URSA Major's Shakespeare Nickel Project, located 70 km west of Sudbury, is currently in a pre-production mining stage.

Nickel Offsets Property

The Nickel Offsets Property is located approximately 40 kms northwest of the City of Greater Sudbury and consists of twelve contiguous patented mining claims and five unpatented mining claims covering 884 acres in Foy Township, Ontario. The property straddles a 2.25 km strike length of the Foy Offset Dike, the largest known radial offset dike emanating from the Sudbury Igneous Complex. The property hosts the only portion of the Foy Offset Dike that has had commercial ore production from the past-producing Nickel Offsets (Ross) Mine which produced 208,551 tons of nickel and copper ore between 1943 and 1957, with reported recoveries of 4.56 million lbs of nickel and 3.32 million lbs of copper. Sulfide mineralization in the Foy Offset Dike occurs as pods, lenses and veins of massive and semi-massive sulfide minerals, mainly pyrrhotite, pentlandite and chalcopyrite in localized areas.

Shares issued: 75,970,980

Fully diluted: 86,063,030

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

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