MANTLE SIGNS DEFINITIVE OPTION AGREEMENT TO EXPLORE MEGASTARâ€™S BC SEDEX ZINC PROPERTIES
Vancouver, British Columbia, Canada – Thursday, March 29, 2007 – Mantle Resources Inc. (TSX Venture Exchange: MTS; Frankfurt: A0F7E1) is pleased to announce that further to its news release of February 19, 2007, the Company has now entered into a definitive agreement with Megastar Development Corp. (TSX-V: MDV) pursuant to which Mantle has 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 an emerging premier zinc-lead district -- namely 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 recently intersected high-grade SEDEX style zinc-lead mineralization.
The definitive agreement is subject to regulatory approval. 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
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.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
ON BEHALF OF THE BOARD OF DIRECTORS
MANTLE RESOURCES INC.