MANTLE FINALIZES PRINCIPAL TERMS OF OPTION AGREEMENT TO EXPLORE MEGASTARâ€™S BC SEDEX ZINC PROPERTIES
Vancouver, BC – February 19, 2007 – Mantle Resources Inc. (TSX Venture: MTS; Frankfurt: AOF7E1) (the “Company”) is pleased to announce that it has finalized the principal terms of an option agreement with Megastar Development Corp. (TSX.V: MDV) pursuant to which Mantle will have an option to earn an initial 60% interest in Megastar’s SEDEX zinc properties located in Northeastern British Columbia by spending up to $2.25 million.
Megastar’s 100% owned SEDEX zinc properties are located within the highly prospective Gunsteel shale formation in the regionally extensive, world-class Kechika trough sedex zinc basin. The properties comprise over 18,000 hectares and are situated adjacent to and along strike the favorable geology which is host to several zinc deposits including Mantle’s nearby Akie deposit where drilling has intersected extensive high-grade SEDEX style zinc-lead mineralization.
“We are very pleased to come to terms with Megastar on the exploration of its zinc properties in Northeastern British Columbia,” commented Mr. Peeyush Varshney, President of Mantle. “This agreement makes it evident and further confirms that Mantle now holds the dominant interest and land position in this emerging premier zinc-lead district.”
Dušan Berka, President & CEO of Megastar stated, “This alliance with Mantle offers an excellent opportunity to ensure a cost effective and comprehensive exploration effort across the entire area to the benefit of all parties concerned. The fact that Lundin Mining (TSX: LUN), one of the world’s premier mining companies, committed significant financial and technical resources to this region by partnering with Mantle was an important factor in our decision to proceed down this path.”
A definitive agreement, which will be subject to regulatory approval, is currently being drafted. Mantle will be the operator and can earn a 60% interest in Megastar’s properties as follows:
Payment to Megastar of $50,000 and the issuance of 50,000 shares of Mantle upon signing a definitive agreement;
The issuance of 50,000 shares of Mantle nine months from signing a definitive agreement;
Payment to Megastar of $100,000 and the issuance of 25,000 shares of Mantle on or before the first anniversary of the signing of the definitive agreement; and
Spending $2.25 million in exploration and development over a three-year period.
Upon earning a 60% interest, Mantle can increase its interest to 80% by spending an additional $1.0 million on the properties. Mantle can then earn a further 10% (cumulative 90%) by completing a preliminary feasibility study.
ON BEHALF OF THE BOARD OF DIRECTORS
MANTLE RESOURCES INC.
“ PEEYUSH VARSHNEY ”
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.