Everett Closes Option on Menarik Property with Pro-or
EVERETT RESOURCES LTD.
710 - 890 W. Pender St - Vancouver, BC - V6C 1J9 Tel: 604.669.2151 / Fax: 604.669.2136 Website: www.everettresources.com
EAR-NR-2-11 January 13, 2011 TSX-V: EAR
EVERETT CLOSES OPTION ON MENARIK PROPERTY WITH PRO-OR
Vancouver, B.C. - (January 13, 2011 - TSX-V: EAR) Everett Resources Ltd. (“Everett”) is pleased to announce that following receipt of acceptance for filing from the TSX Venture Exchange on January 10, 2011 for the Option Agreement between Everett and Pro-Or Inc. (Ressources Minieres) ("Pro-Or") whereby Everett can earn a 50% interest in the Menarik Property held by Pro-Or, Everett has closed the transaction. Pursuant to the terms of the Option Agreement, to earn its interest, Everett must issue a total of 4,500,000 shares in its capital to Pro-Or over 2 years, of which 1,500,000 were issued at closing, and must incur an aggregate of $5,000,000 in exploration expenditures over 3 years, of which $500,000 must be incurred on or before April 30, 2011 and a total of $1,000,000 on or before August 19, 2011.
In conjunction with the acquisition of the option, Everett has agreed to pay a finder's fee of 1,800,000 shares, in stages over 1 year, of which 150,000 shares were issued at closing. The shares issued to Pro-Or and to the finders are subject to a hold period and are restricted from trading until May 12, 2011. Everett plans to use the funds raised in the flow-through private placement to carry out exploration work on the Menarik Property. Currently Everett is organizing crews and equipment with a view to carrying out a geophysical survey (V-TEM) on the Property, to be followed by a drilling program. Work is expected to commence in the next few weeks.
About the Menarik Property
As set out in the joint news release issued by Everett and Pro-Or on September 23, 2010, the Menarik Property is located in northwestern Quebec, approximately 45 kilometers to the south east of the town of Radisson. It comprises a contiguous group of 67 claims, for a total area of 3,062 hectares, fully owned by Pro-Or, free of any royalties. Pro-Or, to date, has incurred expenditures in the order of $6,900,000 on the Property.
Based on a compilation report by Pro-Or’s geologist, Yvan Bussieres, five different types of mineralization have been indentified on the Menarik Property. The Menarik ultramafic intrusion contains stratiform chromitites formations, massive sulphides and nickel-copper concentrations in altered zones. A 43-101 compliant estimate of chromite resources made for Pro-Or in 2006 by the consultant group Roche from Quebec City and updated in 2009 by Yvan Bussières, P.Eng. reports a total of measured and indicated resources exceeding 6.2 million metric tons grading on average 7.69% Cr2O3. Gold showings and mineralized felsic volcanics were found on the edges. The chromitite formations are similar to the South African Archean stratiform orebodies (Bushveld complex UG2 horizons). The massive sulphides Everett Resources Ltd. News Release Page 2
are similar to the South African Bushveld complex Merensky reef and to Labrador's Voisey's Bay formation. The Ni-Cu concentrations in the altered zones look like Ontario's Armit Lake property. The gold showings are similar to the Cadillac-Larder Lake Archean gold deposits and the mineralized felsic volcanics are similar to Noranda's Horne Mine.
The San Juan Property, New Mexico
Everett continues to hold and maintain its interest in the uranium prospective San Juan Property which is comprised of 496 mineral claims located in the San Juan Basin of New Mexico. The San Juan Property contains lands where earlier drilling by the U.S. Department of Energy encountered conditions consistent with those of other uranium occurrences identified in the area. Everett`s geological consultants recommend an exploration program, including drilling, to confirm the existence of uranium on the property. With its current exploration focus on the Menarik Property, Everett may seek a joint venture participant to carry out an exploration program.
EVERETT RESOURCES LTD.
Per: "Michael Waggett"
Michael Waggett, President
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or the accuracy of this release.