Shoreham Resources agreement for Five Star property
Ticker Symbol: C:SMH

Shoreham Resources agreement for Five Star property

Shoreham Resources Ltd (C:SMH)
Shares Issued 64,559,298
Last Close 3/3/2010 $0.275
Thursday March 04 2010 - Property Agreement

The TSX Venture Exchange has accepted for expedited filing documentation pertaining to a property option agreement dated Aug. 15, 2009, between Shoreham Resources Ltd. and Case Development Company Ltd. (Frederick Hamley Case), and subsequently amended on March 4, 2010, pursuant to which the company has an option to acquire a 100-per-cent interest in 14 medium scale property permits located in northwestern Guyana, known as the Five Star gold property. The total consideration consists of $85,000 (U.S.) in cash payments, 400,000 shares of the company and $20,000 (U.S.) in permit renewal fees as displayed in the table.

Date   Cash (U.S.)   Shares   Other commitments (U.S.)

Year 1   $25,000    175,000   $20,000 permit renewal fee
Year 2   $20,000     75,000
Year 3   $20,000     75,000
Year 4   $20,000    75,000

In addition, there is a 3-per-cent net smelter return relating to the acquisition. The company may, at any time prior to the commencement of commercial production, purchase 3 per cent of the net smelter return for $3-million (U.S.) in order to reduce the total net smelter return to 0 per cent, representing $1-million (U.S.) for each percentage point of the royalty.

A finder's fee of $5,000 (U.S.) and 40,000 shares is payable to Dominik O'Sullivan (20,000 shares in year two and 20,000 shares and $5,000 (U.S.) in year four).