TORONTO, ONTARIO Oct. 7, 2008 - David A. Bending, President and CEO of Shoreham Resources Ltd. (TSX VENTURE:SMH) and Shoreham's Board of Directors are pleased to announce that on October 6, 2008 the Company signed a Letter Agreement to option our remaining 40% interest in the Sachigo Lake Property to MacDonald Mines Exploration Ltd. (TSX VENTURE:BMK). Shoreham optioned an initial 60% interest in the Property to Escape Group Inc. (see News Release 2006-04, March 30, 2006). Shoreham Resources is a Canadian based exploration company dedicated to the exploration of advanced precious metal and polymetallic deposits in South America and Canada.
Subject to Exchange approval, the terms of the Agreement call for MacDonald to make cash payments to Shoreham of $75,000 within 60 days of signing the Letter Agreement (the Effective Date) and pay a further $75,000 on or before the third anniversary of the Effective Date. In addition, MacDonald will issue to Shoreham 150,000 common shares and 300,000 warrants of MacDonald within 30 days of the Effective Date and a further 150,000 shares and 300,000 warrants on or before the first anniversary of the Effective Date. The warrants are exercisable at $0.40 per share. Shoreham will retain a 2-1/2% Net Smelter Royalty (NSR) interest in the Property subject to a buy down provision whereby MacDonald can reduce the royalty to 1-1/2% by paying Shoreham $1 million. The NSR applies to an Area of Influence of approximately 391 square kilometers.
David Bending, President and CEO of Shoreham Resources Ltd., states "Shoreham has advanced molybdenum, silver and uranium projects in Canada but more significantly we also have recent discoveries at our gold project in the Marudi Mountain Gold District in southern Guyana. Marudi Mountain has the earmarks of a world-class gold opportunity and the project brings a heritage of good work and significant historic gold resources. Shoreham is in the process of focusing our exploration efforts on our flagship Marudi Property in Guyana. Our recent geological mapping, exploration trenching and TRADO sampling programs have enabled us to identify the potential to expand the existing resource on the Mazoa Hill deposit area. We are confident that our planned program of trenching, mapping, TRADO drilling and diamond drilling scheduled for this year will generate a rapid expansion of the existing non-compliant resources and discovery of additional gold zones as well. This is our mission and we are well equipped to perform it."
For further information regarding the Company please visit our website at www.shoreham.ca, or our Investor Relations Hub at www.agoracom.com/IR/Shoreham where you can post questions and receive answers or review questions and answers already posted by other investors, or contact our Investor Relations Representative, Mr. Mike Kachanovsky via email at mike@shoreham.ca.
The TSX-V Exchange has not reviewed and accepts no responsibility for the adequacy or accuracy of this release.
CONTACT INFORMATION:
Shoreham Resources Ltd.
Mr. Mike Kachanovsky
Investor Relations Representative
(416) 867-1101
Fax: (416) 867-1222
Email: mike@shoreham.ca
Website: www.shoreham.ca
