Lateegra acquires Fernie phospate claims

2008-04-21 03:33 ET - News Release

Mr. Chris Verrico reports

LATEEGRA ANNOUNCES PHOSPHATE ACQUISITION

Lateegra Gold Corp. has acquired a 100-per-cent interest in the "Fernie" claims, consisting of 117 claims encompassing 56,000 hectares in the Fernie formation phosphate belt, located near Fernie, B.C. The Fernie claims encompass two important potential deposit areas known as the Line Creek and Barnes Lake areas.

It is important to note that these reports, being historic in nature, cannot be verified by the company, do not comply with modern reporting standards (National Instrument 43-101), and therefore should not be relied upon.

The Fernie property is underlain by the Fernie formation phosphate belt, characterized in numerous bulletins published by the British Columbia Ministry of Mines and Petroleum.

From a previous report 1987-16, phosphate in southeastern British Columbia issued by the same author and published by the B.C. Ministry of Mines and Petroleum comes the following summary of the Fernie formation. It is important to note that the summary figures contained in this excerpt apply to a large area, a portion of which is covered by the Fernie claims.

"Phosphate was deposited as a single bed or as two beds separated by phosphatic shale. This phosphatic unit extends throughout the basin and is consistently at least one to two metres thick and reaching thicknesses of two to three metres locally. As much as 8.4 billion tonnes of phosphate rock may have been deposited, but less than 5 per cent of this can be considered a potential resource. Resource potential is estimated to be 400 million tonnes with a grade between 11 per cent and 29 per cent P2O5 averaging approximately 20 per cent phosphate. A down-dip extension of 300 metres has been used as a practical mining depth in this calculation."

The following excerpt is taken from bulletin 98, "Phosphate deposits in British Columbia," by S. Butrenchuk, PGeo, published by the British Columbia Ministry of Employment and Investment, energy and minerals division, geological survey branch:

"In the west Line Creek area the basal phosphate can be traced for a strike length of 15 kilometres, in strata that dip 40 to 75 degrees easterly. It varies in thickness from less than one metre south of Line Creek, to more than three metres at Mount Lyne. Phosphate content ranges from a low of 3.7 per cent P205 in a diamond-drill hole, to a high of 23.7 per cent P2O5 across 1.6 metres in a backhoe trench (Hannah, 1980). At Mount Lyne, the phosphorite averages 22.9 per cent P205 across two metres or 19.8 per cent P205 across three metres.

Crows Nest Resources Ltd. calculated a reserve of 972,800 tonnes to a depth of 30 metres in the west Line Creek area, based on a strike length of 5,850 metres and an average thickness of two metres (Hannah, 1980). The resource potential of the Line Creek area is estimated to be in excess of 25 million tonnes with a grade of approximately 20 per cent P2O5, assuming a strike length of 15 kilometres, an average thickness of two metres and a depth of 300 metres. The estimated grade is based on surface samples and therefore could be lower depending on how much weathering of the phosphate has taken place.

In the Barnes Lake area phosphorite is exposed along the limbs of a sequence of folds. The phosphate resource potential for the Fernie formation in this area is estimated to be seven million tonnes to a depth of 100 metres, based on a 25.5-kilometre strike length and an average thickness of one metre. An additional 4.2 million tonnes may be available to the east of the Corbin logging road."

The newly acquired Fernie property encompasses the above-noted areas.

Terms of the acquisition are the following:

• $50,000 on signing of the agreement (paid);
• $350,000 cash, one million common shares of the company and a share purchase warrant to purchase an additional one million common shares of the company at a price of 35 cents per share with an expiry date of April 18, 2010, upon TSX Venture Exchange approval of the acquisition;
• $400,000 within 30 days of the company successfully completing a financing (terms of which will be announced on or about the date of TSX-V approval);
• $400,000 within 120 days of the company successfully completing a financing (terms of which will be announced on or about the date of TSX-V approval);
• $400,000 within 240 days of the company successfully completing a financing (terms of which will be announced on or about the date of TSX-V approval);
• One million common shares of the company 360 days following TSX-V approval of the transaction.

Any shares or share purchase warrants issued will be subject to TSX-V hold periods.

A finder's fee will be payable on this transaction in accordance with TSX-V policy.

The company intends to commence a work program as soon as possible in order to verify sample data, prepare for a winter/spring drill program, and to complete a National Instrument 43-101-compliant report.

We seek Safe Harbor.