Torch” or the “Corporation”) with respect

to the option agreement, as amended, (the “

Option Agreement”), between the Torch and Red Bird Resources

Ltd. (“

Red Bird”) Torch wishes to confirm that as of May 31, 2008 Torch became the legal and beneficial

owner of a non-transferable 25% undivided interest in the Red Bird Property.

The Option Agreement contains provisions allowing Torch to earn the remaining 75% interest in the Red Bird

Property subject to certain consideration being paid to Red Bird including cash payments, share issuances and

work program commitments. Under the Option Agreement, Torch was required to complete a $4,000,000 cash

payment (the “

Cash Payment”) to Red Bird on or before December 31, 2008. Given current market conditions

and the cash position of the Corporation, management was recently forced to make the difficult decision that it

was in the Corporation’s best interests not to complete the Cash Payment on or before December 31, 2008.

Torch wishes to confirm that as of the date of this news release the Option Agreement has not been terminated.