Sudbury, Ontario (June 21, 2010) Northern Superior Resources Inc., SUP.TSX-V (“Northern Superior”) and Rainy River Resources Ltd., RR.TSX-V (“Rainy River”) are pleased to announce that they have entered into an agreement whereby Northern Superior has granted to Rainy River an option to earn a 51% joint venture interest in the eastern half of Northern Superior’s 100% owned Ti-pa-haa-kaa-ning/Big Dam gold property in Northwestern Ontario (the “TPK Property”). (See Northern Superior press release dated November 20th, 2008 re Big Damn and TPK).
Rainy River can earn its 51% interest in the eastern half of the TPK Property by (a) funding $9.4 million in exploration expenses over a 3 year period, with $1.4 million in year 1, $4 million in year 2 and $4 million in year 3; (b) making cash payments of $300,000 upon receipt of regulatory acceptance and a further $1.3 million in January, 2011 and (c) completing three equal annual private placements of common shares of Northern Superior of $500,000 each for a total equity investment of $1.5 million. The first placement of $500,000 will be priced at $0.20 per share, while the second and third will be priced at the volume weighted average trading price of Northern Superior’s common shares for the last 20 trading days prior to the anniversary date of the agreement. Northern Superior is required to spend an additional $1.6 million in exploration expenditures on the eastern half of the TPK project this year.
Dr. T.F. Morris, President and CEO of Northern Superior, stated: “This agreement with Rainy River, which is having remarkable success using gold grain-in-till data similar to that being used by Northern Superior in developing its new gold camp in northwestern Ontario, is a tremendous endorsement of Northern Superior’s exploration efforts to date and provides an important infusion of capital and expertise to push this program to success. We look forward to working with Rainy River with the intent of moving the TPK property towards another world-class gold camp in northwestern Ontario.”
Stu Averill, Vice-President Exploration of Rainy River, commented: “The strong, regionally extensive gold grain anomaly in the till on the TPK property is exceptional. This anomaly is matched at only three other localities in Canada, all of which either have a new mining operation (Meadowbank) or are under consideration for development (Meliadine, Rainy River). The strong similarities between the TPK anomaly and our Rainy River anomaly, as defined by RC drilling, can be seen on the attached maps (see www.nsuperior.com) even though the key southern part of the TPK anomaly has not yet been drilled. Gold grain anomalies of this scale are amalgamated responses from a cluster of gold zones. They normally indicate a large gold system or district rather than a single gold zone, and the RC drilling technique is very effective for identifying and pinpointing the best gold zones within these systems. With a mobile rig already on site, we can immediately apply our experience from finding six gold zones at Rainy River to rapidly advance the TPK project. We look forward to working with Northern Superior on this exciting project.”
During the remainder of 2010, Overburden Drilling Management Limited (“ODM”) will act as project manager on a mutually accepted exploration program that will be decided and implemented by ODM with assistance from Northern Superior’s geologists. After the initial exploration expenditure in year one, Rainy River will be the manager of the exploration program with budgets being decided mutually, but with Rainy River having the final right to decide the final budget and project implementation. Rainy River has the right to accelerate expenditures to exercise its option early. Rainy River may terminate the option at any time after completing its year 1 obligations and making the cash payment of $1.6 million to Northern Superior.
Northern Superior has also granted to Rainy River rights of first refusal with respect to both Northern Superior’s interest in the eastern half of the TPK property and its 100% interest in the western half of the TPK Property (known as the “New Growth Area”) should Northern Superior receive acceptable bona fide arms’ length third party offers.
If Rainy River exercises its option, the parties have agreed to form a joint venture, with Rainy River holding a 51% interest and Northern Superior 49%. Rainy River will be the operator and manager of the joint venture.
Rainy River will continue the good faith efforts that Northern Superior has initiated with Neskantaga First Nation and adhere to agreements in place between Northern Superior and Neskantaga as part of the budgeted expenditures.
The option/joint venture agreement is subject to acceptance by the TSX Venture Exchange.
About Northern Superior Resources Inc.
Northern Superior Resources Inc. is a junior exploration company focused on exploring for gold in the Superior Province of the Canadian Shield. The Company currently has three high active, high quality gold exploration projects in Ontario and Quebec- TPK, Thorne Lake and Wachigabau (see Company web site, www.superior.com). These projects, and three more early stage gold exploration projects (Rapson Bay, Meston Lake and Lespinay), were all developed from the Company’s extensive geoscientific data base. Additional gold exploration projects are currently being developed from this data base. In addition to optioning out the TPK property, the Company is currently looking to option-out its other 100% owned Rapson Bay, Meston Lake and Lespinay gold projects. Northern Superior is a reporting issuer in British Columbia, Alberta, Ontario and Quebec, and trades on the TSX Venture Exchange under the symbol SUP.
About Rainy River Resources Ltd.
Rainy River Resources Ltd. is a Canadian precious metals exploration company whose key asset is the Rainy River gold project in Richardson Township in Northwestern Ontario. The Company’s property is extremely well located, with easy access by a network of roads and in close proximity to hydro-electric infrastructure. The Rainy River district has a skilled labour force and is one of the lowest-cost areas for mineral exploration and development in Canada. The province of Ontario has low political risk and, according to the annual Fraser Institute global survey of the mining industry, has consistently ranked as one of the top jurisdictions embracing mineral development.
During the past several years the Company has been conducting a dual-focused exploration program on its Rainy River project, consisting of definition diamond drilling of the main gold resource with accompanying scoping-style studies, and selective diamond drill testing of high-priority gold targets defined primarily by RC drilling within the large gold system centered in the so-called 17/ODM/433 zones. To date its efforts have identified a total inferred and indicated resource of approximately 5 million ounces of gold. With a large land position, approximately CDN $65 million in the treasury, and numerous ore grade intercepts on drill targets outside the main resource of the 17/ODM/433 zones, Rainy River is well positioned to continue with its drill program and to continue planning for future development of a mine.
For further information contact:
Northern Superior Resources Inc. Rainy River Resources Inc.
Thomas F. Morris Raymond Threlkeld
President and CEO President and CEO
Tel: (705) 525 ‐0992 Tel: (647) 476-5407
Fax: (705) 525 ‐7701 Fax : (416) 642-9312
e‐mail: email@example.com e-mail : firstname.lastname@example.org
Forward looking statements: This news release includes certain “forward‐looking information” within the meaning of Canadian securities legislation and “forward‐looking statements” within the meaning of the United States Private Securities Litigation Reform Act or 1995 (collectively, “forward looking statements”). Forward looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “ forecast”, “ expect”, “ potential”, “project”, “target”, “schedule”, “budget” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved or other similar expressions and includes the negatives thereof. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding potential mineralization, exploration results, interpretation of results, the timing and success of exploration activities generally, the timing and results of future resource estimates, and future plans and objectives of Northern Superior or Rainy River are forward‐looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward looking statements are based on a number of material factors and assumptions. Important factors that could cause actual results to differ materially from Northern Superior’s or Rainy River’s expectations include exploration risks, changes in project parameters as plans continue to be refined, results of future resources estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the Company with securities regulators. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward looking statements, there may be other factors that cause such actions, events or results to differ materially from those anticipated. There can be no assurance that forward looking statements will prove to be accurate and accordingly readers are cautioned not to place undue reliance on forward looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.