PRESS RELEASE
Conquest signs letter of Agreement with Detour Gold Corporation on conquest?s properties ADJACENT to Detour Lake GOLD PROJECT
? Conquest sells Aurora Property to detour gold for $ 3 MILLION
? Conquest and detour gold to enter into 50/50 joint venture on sunday Lake Property
? DETOUR GOLD TO SPEND $2.13 MILLION IN EXPLORATION ON AURORA AND sUNDAY LAKE PROPERTIES
Toronto, Ontario ? April 12, 2010 - Conquest Resources Limited (TSX-V: ?CQR?) is pleased to announce that it has entered into a letter of agreement (the ?LOA?) with Detour Gold Corporation (?Detour Gold?) whereby Detour Gold will have the option to acquire a 50% interest in Conquest?s Sunday Lake Property and Detour Gold will purchase Conquest?s interest in the Aurora Property.
The Sunday Lake property lies immediately east of Detour Gold?s Detour Lake Project, along the eastern extension of the Sunday Lake Deformation Zone, in what is believed to be a prospective area of this relatively under-explored part of the Abitibi Greenstone Belt.
The Aurora Property lies south of Detour Gold?s Detour Lake Project. Detour Gold is acquiring the Aurora Property to accommodate the infrastructure requirements for the development of its Detour Lake mine.
Conquest has earned an undivided 60% interest in those properties, and has exercised its right to earn an additional 40% interest from NVI Mining Ltd., an indirect wholly owned subsidiary of Breakwater Resources Ltd., by completing the remaining $2.13 million exploration expenditures prior to December 31, 2012, subject to a 2% net smelter royalty payable to NVI Mining Ltd.
Pursuant to the terms of the LOA, as consideration for Conquest?s interest in the Aurora Property, Detour Gold will pay Conquest $1 million in cash and will, subject to regulatory approval, issue 100,000 common shares of Detour Gold to Conquest. Detour Gold shares recently traded in the range of $19 to $20 per share on the TSX. In addition, Detour Gold will complete the remaining $2.13 million in exploration expenditures on the Aurora and Sunday Lake Properties prior to December 31, 2012, of which a minimum of $1 million will be expended on the Sunday Lake Property.
After completion of those expenditures, Detour Gold will have a 100% interest in the Aurora Property and a 50% interest in a joint venture with Conquest on the Sunday Lake Property. Conquest will retain a 50% joint venture interest in the Sunday Lake Property, subject to a 7.5% net profits interest held by Prism Resources Inc.
?We are pleased to have reached an agreement with Detour Gold which will be beneficial to both companies,? said Terence McKillen, President and Chief Executive of Conquest. ?The agreement will result in a transaction value to Conquest of approximately $3 million, which includes $ 1 million in cash and the current value of the 100,000 shares of Detour Gold. In addition, as part of the agreement, Detour Gold will complete the remaining $2.13 million expenditures required to vest the properties, of which a minimum of $1 million will be expended on the Sunday Lake Property over a two year period with a minimum of $500,000 per year. Detour Gold?s geological knowledge and expertise in the area will be invaluable in the future exploration on the Sunday Lake Property,? added Mr. McKillen.
The Transaction with Detour Gold is expected to close in the second quarter of 2010. Closing of the Transaction is conditional upon (i) completion of satisfactory due diligence by Detour Gold; (ii) receipt of regulatory, contractual and corporate consents and approvals; (iii) entering into a formal agreement for the Transaction; (iv) Detour Gold and Conquest entering into a joint venture agreement providing Detour Gold with a right to earn a 50% interest in Conquest?s interest in the Sunday Lake Property; and (v) the satisfaction of other customary conditions.
ABOUT DETOUR GOLD
Detour Gold is a Canadian gold exploration and development company whose primary focus is to advance the development of its flagship Detour Lake gold project located in northeastern Ontario towards production. Detour Gold has reported an open pit reserve of 8.8 million ounces of gold contained within 238.6 million tonnes at a grade of 1.15 g/t gold within a global measured and indicated resource of 445.9 million tonnes at 1.20 g/t gold. The company is completing a feasibility study, which is expected to be released prior to the end of the second quarter of 2010, and is advancing the permitting and engineering development work on the Detour Lake gold project.
ABOUT CONQUEST
Conquest is exploring several gold projects in Ontario including the Alexander Gold Project at Red Lake where the Company is currently conducting an 8,000 metre deep drilling program.
There are 83,713,637 shares of Conquest issued and outstanding.
QUALIFIED PERSON
Information of a scientific or technical nature contained in this release has been prepared by or under the supervision of Terence McKillen, P.Geo., the Chief Executive Officer of the Corporation and a Qualified Person within the meaning of National Instrument 43-101 of the Canadian Securities Administrators.
This news release may include certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization, resources and reserves, exploration results, and future plans and objectives of Conquest, 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. Important factors that could cause actual results to differ materially from Conquest?s expectations are exploration risks detailed herein and from time to time in the filings made by Conquest with securities regulators.
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 the accuracy of this release.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Toll free: 1(877) 280-8633
D. Brett Whitelaw, Vice-President ? (604) 662- 8633 - Vancouver
Rob Kinloch, Director ? (306) 343- 5799 - Saskatoon
Terence N. McKillen, President & CEO ? (647) 728- 4126 - Toronto
John F. Kearney, Chairman ? (416) 362- 6686 - Toronto
info@conquestresources.net
www.conquestresources.net
We respect your privacy. If you wish to be removed from CQR email distribution list please reply to this email by typing ?UNSUBSCRIBE? in the subject line and you will be removed from future mailings.