Unity Energy Corp.

Unity Energy Corp.

May 26, 2011 10:00 ET

Unity Acquires Gold Project in La Ronge Gold Belt

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 26, 2011) - Unity Energy Corp. (TSX VENTURE:UTY)(FRANKFURT:UJN) (the "Company") is pleased to announce that it has entered into an acquisition agreement with an arms'-length vendor to earn a 100% interest in the Dickens Lake Property, located in the LaRonge Gold Belt, northern Saskatchewan. The Project consists of four adjoining mineral dispositions and covers an area of over 6000ha in a region that has produced over 600,000 ounces of gold. Unity can earn a 100% interest in the Dickens Lake Project by paying the vendor $30,000 and issuing 2,000,000 common shares. A 2% NSR has been granted to the vendor, of which 1.5% can be purchased for $1,500,000. No new insiders or control persons will be created through this acquisition. This transaction is subject to TSX Venture Exchange Approval.

More than one hundred gold showings and four past producers are documented in the La Ronge Gold Belt and over $70 million has been spent on gold exploration and development since 1980. Companies involved in exploration in this productive belt included Placer Dome, Cameco, Shore Gold and Cominco. At present, the most active company in the LaRonge Gold Belt is Golden Band Resources, which recently commenced commercial gold production, controls 12 known deposits, 4 former mines and over 290 square miles of project land. In a news release dated April 20, 2011, Golden Band reported that, "Its Jolu gold mill (400 tpd) processed a total of 9,912 dry tonnes of high-grade ore from the Roy Lloyd mine during March, producing 3,349 troy ounces (107.7 Kg) of gold, with a recovered grade of 10.25 g/t Au. Total gold production to April 18th is 6,586 troy ounces (211.7 Kg), and the Company is on track to achieve its target of 45,000 troy ounces of gold for the first year of commercial production."

The Dickens Lake Project has been the subject of several exploration programs, which have resulted in the identification of a host of occurrences and showings, including the Yates Au, Texas Grid Au, Slaney Lake, Teacher's Point Au, V.G. Au, Sulphide Island Au, Perepelitz Cu-Au, Sample MM-10-10-3, Cockwill Lake Cu, and the GB Gold. Unity included Dickens Lake in its VTEM survey and expects to have preliminary results this spring.

The Greywake (51% Masuparia/49% Golden Band) and Bingo (Golden Band) are the nearest deposits to the Dickens Lake Project. The Greywake Deposit lies 2.5km to the east and Masuparia Gold Corporation reports, "Wardrop Engineering (2008) has completed an independent, NI 43-101 compliant resource estimation of the North Zone which gives an indicated resource of 184,000 tonnes grading 8.4 grams per tonne gold (est. 49,700 Troy ounces) plus an inferred resource of 58,000 tonnes at 7.29 grams per tonne gold (est. 13,600 Troy ounces) at a cut-off of 5 grams per tonne gold." The Bingo Deposit lies 10.5km to the southwest and in a 2006 NI43-101 report, Ronal G. Simpson P.Geo estimated the Bingo Deposit to "contain an Indicated Mineral Resource of 22,900 tonnes grading 13.8 g/t gold at a cut-off of 5 g/t gold over a minimum width of 1.3 metres. An additional 136,500 tonnes averaging 12.74 g/t gold is classified as inferred."

The Dickens Lake Project area lies within the northeasterly-trending, early to mid-Proterozoic, island arcderived, volcanosedimentary-plutonic belt, referred to as the La Ronge Domain. The La Ronge Domain is comprised dominantly of the 150 km long by 10 - 20 km wide Central Metavolcanic Belt (in which the majority of the projects are located). The boundaries between the Central Metavolcanic Belt and the flanking metasedimentary belts are generally characterized by a prominent zone of shearing. The volcanosedimentary succession is intruded by a variety of ultramafic to felsic plutons. The majority of the gold occurrences and those deposits which have been exploited are classed as shear zone-hosted quartz vein lode deposits, and they are located in areas with significant rock competence differentiations, as in the vicinity of pluton-volcanic contacts, at the contact of different phases within plutons, or between mafic and felsic flows. These structurally-controlled deposits can be further sub-divided into "felsicintrusion-hosted" (eg: Star Lake Type) and "volcanic-hosted" (eg: Bousquet Type and Memorial Occurrence).

Anita Algie, President, commented: "We are very pleased to make this strategic acquisition in the Saskatchewan gold space. With Golden Band's recent production success and the robust nature of the gold market, the Dickens Lake Project offers Unity an irresistible opportunity. In the coming months, Unity will be reviewing corporate strategies that could allow further expansion in gold in order to create value for its loyal shareholders."

On Behalf of the Board of Directors of Unity Energy Corp.

Anita Algie, B.Sc. Hon, President

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.

Contact Information