Laurentian enters LOI with Kinross for Uchi exploration

Laurentian Goldfields Ltd (C:LGF)
Shares Issued 22,115,719
Last Close 5/22/2009 $0.145
Thursday May 28 2009 - News Release

Also Kinross Gold Corp (2) (C:K) News Release

Mr. Andrew Brown of Laurentian reports

LAURENTIAN GOLDFIELDS LTD. AND KINROSS GOLD CORPORATION ENTER INTO LETTER OF INTENT TO FORM UCHI EXPLORATION ALLIANCE

Laurentian Goldfields Ltd. and Kinross Gold Corp. have entered into a letter of intent to form an alliance to conduct a $500,000 generative exploration program in the Uchi geological subprovince of Ontario and Manitoba (the Uchi alliance) over a period of one year. The Uchi alliance will target the highly prospective Red Lake, Rice Lake, and Pickle Lake greenstone belts.

"This is another significant milestone in Laurentian's strategy of allying itself with top-tier gold producers in the search for world-class gold deposits in Canada," states Andrew Brown, president and chief executive officer of Laurentian.

Under the terms of the Uchi alliance, Kinross and Laurentian will invest $400,000 and $100,000, respectively, to finance one year of early-stage exploration to identify new gold targets. The term of the Uchi alliance may be extended upon mutual agreement.

Kinross may elect to form a joint venture with Laurentian on a 50/50 basis in any of the projects identified and acquired as a result of the Uchi alliance. Kinross can increase its interest to 75 per cent on each joint venture property by solely financing $1.5-million of future exploration expenditures over a two-year period from the date the joint venture is formed. The Uchi alliance is subject to completion of a definitive alliance agreement between the two parties.

Laurentian's management believes that partnerships such as the Uchi alliance expose Laurentian shareholders to the upside of new gold discoveries while lowering the financial burden often associated with conducting grassroots exploration.

© 2009 Canjex Publishing Ltd.