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Message: Portage Minerals Inc. Signs Letter of Intent with Tri-Star Resources plc for Bal

Portage Minerals Inc. Signs Letter of Intent with Tri-Star Resources plc for Bald Hill Antimony Project

06/28/2011

Portage Minerals Inc. announced that it has signed a non-binding Letter of Intent with Tri-Star Resources plc in which Tri-Star will fund $12.5 million in exploration and development expenditures related to the Bald Hill Antimony project (the "Project") to earn a 50.1% interest in the Project. Under the terms of the non-binding letter of intent, Tri-Star will invest $5.0 million by October 31, 2011 to earn a 15% interest in the project. These funds will be used to fund a drilling and exploration program. Tri-Star will have the right to invest another $7.5 million within two years of the entering into of the definitive joint venture agreement to fund the Project through the feasibility study to earn a total 50.1% interest in the Project.

Portage will then have the option to fund its proportionate share of mine development costs or be diluted to a 20% carried interest. In either case, Portage will retain a 1% net smelter royalty. In addition, Tri-Star will be granted the right to purchase 100% of the mineral production from the Project at such rates to be negotiated by the parties.

The letter of intent is subject to a 30 day due diligence period and the completion of a definitive agreement by August 31, 2011. Under the terms of the letter of intent, Tri-Star would be the operator of the project. Portage expects to complete this transaction within the next 60 days.

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