Yankee Hat Minerals Ltd.

Yankee Hat Minerals Ltd.

November 09, 2007 12:27 ET

Yankee Hat Signs Letter of Intent to Acquire 70% of George's Lake Gold Property From War Eagle

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 9, 2007) - Yankee Hat Minerals Ltd. (the "Company" or "Yankee Hat") (TSX VENTURE:KHT) announces that it has entered into a Letter of Intent to earn up to a 70-per-cent option interest in the George's Lake Gold Property ("George's Lake" or the "Property") located in the La Ronge, Saskatchewan, gold belt situated 15 Km south-southeast of the producing Seabee Gold Mine.

Under the terms of the Letter of Intent, Yankee Hat will be granted, subject to an existing 0.5-per-cent Net Smelter Return Royalty ("NSR") and a 10-per-cent carried interest owned by an unrelated party, sole and exclusive rights to earn up to 70-per-cent interest in the property in consideration of incurring a total of $1.5 million in expenditures on the property over a period of three years. Of the 10-per-cent carried interest, 5-per-cent may be purchased at any time for a payment of $2.0 million Cdn. and the 0.5-per-cent NSR can be purchased at any time for one-time payment of $250,000 Cdn. The 70-per-cent interest in the property can be earned in accordance with the following schedule:

- $750,000 on or before December 31, 2008, to earn 50-per-cent interest in the property;

- an additional $375,000 on or before December 31, 2009, to earn an additional 10-per-cent interest in the property; and

- an additional $375,000 on or before December 31, 2010, to earn an additional 10 per-cent interest for a total 70-per-cent interest in the property.

In connection with the transaction, the Company agrees to pay finders, Timothy Brock and Bradley Scharfe, a fee in cash or shares, or a combination thereof, that will not exceed the guidelines of the TSX Venture Exchange Policy 5.1.


The George's Lake Property is comprised of 979 hectares which is 90-per-cent owned by War Eagle Mining Company Inc. of Vancouver B.C.

The George's Lake Property was selected by War Eagle Mining Company Inc. for gold exploration due to favourable geology, interesting historical gold values found on the property and its close proximity to the producing Seabee Gold Mine.

The property hosts numerous quartz/tourmaline structures that contain gold values over significant widths. Limited drilling to date indicates gold values at depth below the surface showings. The local and regional geology of the area is a favourable host for gold mineralization. Nine areas along the north and east sides of George's Lake have exposed gold mineralized quartz veins, which will be likely targets for further investigation.

In 2006 War Eagle Mining Company Inc. executed a work program to establish a grid and carried out a VLF - EM geophysical survey over the mineralized area as well as the shear zones in order to define drill targets.

Yankee Hat will commence a winter core drilling program to test any geophysical targets and gold showings. Testing of the shear zones on the property will be a priority target for gold mineralization.

The acquisition of the George's Lake Gold Property confirms that the recently announced changes to the board of directors and management have access to a strong network in which to source world class gold exploration and development opportunities.

"Yankee Hat has been able to acquire the George's Lake property as a direct result of the relationship with War Eagle Minerals and the Sweetwater Capital Group," stated Chairman Terry Schorn. "The support of the Sweetwater Group, with its ability to create world-class projects built on the foundation of its financial prowess, will ensure that Yankee Hat will be given every opportunity to become a significant mid-tier gold company."

About Yankee Hat Minerals Ltd.

Yankee Hat's goal is to combine its expertise in property evaluation and mineral exploration, with its financial acumen, to exploit undervalued gold properties in North and South America.


Brad Kitchen President and Director

This document contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or achievements implied by these forward looking statements. We seek safe harbour.

This news release has been prepared by management. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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