VANCOUVER, BRITISH COLUMBIA - Sherwood Copper Corporation (SWC: TSX-V) is pleased to announce, further to its news release of November 7, 2008, the closing of the transaction with Silverstone Resources Corp. (SST: TSX-V) whereby Silverstone will purchase, subject to certain terms and conditions, all of the payable gold and silver from the Minto Mine in the Yukon, over the life of the mine starting December 1, 2008. 

 

Silverstone will purchase all of the payable gold and silver from the Minto Mine and, in exchange, Sherwood received an up-front payment from Silverstone of US$37.5 million, plus a further payment of the lesser of (a) US$300 per ounce of gold and US$3.90 per ounce of silver (subject to a 1% inflationary adjustment after three years and each year thereafter) and (b) the prevailing market price of gold and silver quoted on the London Bullion Market Association, for each ounce delivered.  If production from the Minto Mine exceeds 50,000 oz of payable gold in the first two years of the agreement or 30,000 oz of payable gold per year thereafter, Silverstone will be entitled to purchase only 50% of the amount in excess of those thresholds.  Kutcho Copper Corp., Sherwood?s wholly owned subsidiary that owns the Kutcho copper-zinc-silver-gold project in British Columbia, has also granted Silverstone a right of first refusal to purchase any gold and/or silver streams from the Kutcho project, should Kutcho Copper elect to sell such, on terms and conditions to be agreed by mutual consent.

 

Sherwood, and its wholly-owned subsidiaries, Minto Explorations Ltd. and Kutcho Copper Corp., have now signed definitive purchase agreements with Silverstone with respect to the above described transaction.

 

 

Additional information on Sherwood and its Minto Mine can be obtained on Sherwood?s website at http://www.sherwoodcopper.com.

 

 

 

 

Stephen P. Quin 604-687-7545 or Chris Curran 604-687-7545

 

 

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

 

This document may contain "forward-looking statements" within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this document and the Company does not intend, and does not assume any obligation, to update these forward-looking statements.

 

Forward-looking statements relate to future events or future performance and reflect management's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the completion of future transactions, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, success in obtaining requisite approvals and closing for the combination with Capstone Mining, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

Accordingly, readers should not place undue reliance on forward-looking statements.