Sheltered Oak extends Kidston option to Sept. 6

2009-02-02 11:48 ET - News Release

Mr. Robert Hanson reports

SHELTERED OAK EXTENDS OPTION IN ONE OF KERRS PROPERTY CLAIMS OAKVILLE, ON

Sheltered Oak Resources Corp. has executed an amendment and extension to the option agreement dated Aug. 30, 2005, between Sage Gold Inc., Jocelyne Kidston and Michael Dyment, as extended by the extension and waiver agreement dated Feb. 21, 2007, and the amendment agreement dated Nov. 10, 2008, between Sage and Oak, Ms. Kidston and Mr. Dyment.

Pursuant to the Kidston option agreement, Sage has the right to earn a 100-per-cent interest in claim no. L4202857, situated in Kerrs Township (G-3523), Larder Lake mining division, province of Ontario.

Oak, through its wholly owned subsidiary, Sheltered Oak Resources Inc., has an option to earn a 55-per-cent interest in this claim pursuant to an option agreement entered into between SOR Inc. and Sage on Feb. 7, 2007, as amended. To exercise the option on this claim, Oak must spend $125,000, to and including Aug. 30, 2009, in qualified exploration expenses. These expenses are deductible from the minimum exploration expenses owed to Sage for Oak to earn its 55-per-cent interest on the Kerrs property under the Sage option agreement which as at Jan. 1, 2009, had a balance of $1-million. Oak plans to line cut and drill the Kidston claim in the spring or summer of 2009 and spend the required funds to meet the commitments to the Kidston option agreement.

The term of the Kidston option agreement has been extended to Sept. 6, 2009. The consideration for maintaining the Kidston option agreement in full force and effect is the issue of 125,000 common shares of Oak, 62,500 common shares to Ms. Kidston and 62,500 common shares to Mr. Dyment subject to regulatory approval. This is in addition to the issue of $12,500 of the share capital of Sage.