Yellowjacket Resources Ltd.

Yellowjacket Resources Ltd.

November 27, 2012 09:15 ET

Yellowjacket Resources Ltd. Announces Strategic Review, Evaluation of Oil & Gas Royalty Market

CALGARY, ALBERTA--(Marketwire - Nov. 27, 2012) - Yellowjacket Resources Ltd. (TSX VENTURE:YJK) wishes to advise its shareholders that the company has elected to: i) launch a strategic review process with respect to the potential partial or whole monetization of the Yellowjacket mining property; and ii) explore business expansion opportunities in the oil and gas royalty market. The company believes that the initiatives, if successful, may help to deliver material positive growth to the company's capitalization and operations.

The company intends, as part of the strategic review process, to explore mechanisms to derive increased value from its Yellowjacket mining property. Potential avenues to be explored involve a partial or full sale of the property and/or the opportunity to generate a near-term production royalty on the fully-permitted mining property through third-party funded operations thereon. While the company is optimistic with respect to its go-forward market canvass, there can be no assurance that a transaction shall occur. Unless and until a transaction is declared, the company should continue to be viewed as the go-forward operator of the Yellowjacket mining property, inclusive of its property, plant and equipment, as well as potential production and resource expansion opportunities involving the project.

The company is also pleased to announce that it intends to conduct a go-forward search process for oil and gas royalties for the purpose of growing its business operations in a cash-flow positive manner. The focus of these efforts will be to identify suitable energy royalty investment assets that may be capable of generating dividend yield for shareholders. The company will explore both traditional oil and gas royalty structures, such as gross overriding royalties, as well as the evolving category of oil and gas production stream royalties. Funds that may result from a potential transaction event involving the Yellowjacket mining property may be consequently deployed into oil and gas royalty assets hereafter identified by the company.

"As we have communicated in past, there is strong internal alignment to the needs and expectations of shareholders. With insider participation at close to 40% of issued equity, we are mutually disappointed with the share price performance thus far in 2012, which we believe does not properly reflect the underlying value of our asset base. Equally important, we share stockholder frustration that near-term equity market valuations for non-yielding mining assets may remain tempered. We believe our go-forward efforts to unlock some of the value we see in the fully-permitted Yellowjacket mining property, as well as exploring potential expansion into yield-capable oil and gas royalties, may deliver superior results going into next year. We look forward to updating our shareholders in the near future as to progress we may have in identifying value catalysts around the Yellowjacket mining property and the potential sourcing of oil and gas royalties," stated Chuck Downie, President and Chief Executive Officer of the company.

The company believes that its current cash/cash equivalents along with marketable securities holdings, which are cumulatively in excess of $1,600,000 (as at September 30, 2012) are adequate from a working capital standpoint to advance its expansion plans to locate producing or near-production oil and gas royalty assets. The company continues to have no long term debt obligations or other commitments for capital expenditures.

About Yellowjacket Resources Ltd.

Yellowjacket Resources Ltd. was created in December 2011 by way of plan of arrangement and spun-off from Eagle Plains Resources Ltd. (TSX VENTURE:EPL) on a one-for-three share basis to the shareholders of Eagle Plains. Yellowjacket will focus on the development of the Yellowjacket Gold Project. As part of the spinout transaction Eagle Plains Resources Ltd. holds approximately 12% of the issued common shares of Yellowjacket.

The Yellowjacket Project is located 9 km east of Atlin, BC and is accessed by all-season road. Hydro-electric power is located within 5km of property boundaries. The project received a B.C. Mines Act permit in July, 2009 for an open pit gold mine and onsite 400 tpd mill and concentrator, processing up to 75,000 tons per year. The permit contemplates a 7-9 year mine life from a series of open pits entirely within an area of disturbed placer workings. Gold may be recovered using a simple gravity concentrating recovery plant without the use of chemicals or additives. Yellowjacket owns both mineral (hard-rock) and placer rights within the Project area. The project is located within the traditional territory of the Taku River Tlingit First Nation who have entered into a formal Impact and Benefits Agreement with respect to the project.


Charles C. Downie, President and CEO

Yellowjacket Resources Ltd.

Cautionary Note Regarding Forward-Looking Statements

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

Neither the 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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