TNR Gold to acquire Mud Lake placer claims

2009-06-25 11:34 ET - News Release

Mr. Gary Schellenberg reports

TNR GOLD ACQUIRES LITHIUM BRINE PROJECT IN NEVADA

TNR Gold Corp. has signed a letter agreement to acquire a 100-per-cent interest in the Mud Lake property, located 16 kilometres southwest of Tonopah in the Ralston Valley, Nevada. The Mud Lake property consists of 20 placer claims covering 1,300 hectares in Nye county and is readily accessible year round. The Ralston basin, which contains Mud Lake, appears to have similar geological features that provided both a source and trap for lithium brines found in Clayton Valley, which is located 47 kilometres west from the property. Chemetall-Foote Corp's Silver Peak operation, located in Clayton Valley, is the only lithium brine producer in North America and has been in operation since 1966.

The Ralston basin drainage area covers 8262 square kilometres and contains centres of volcanic activity of the style that can form lithium sources for subsequent accumulation in a low point of the valley at Mud Lake. The company intends to explore the property to determine if lithium evaporates and brine deposits have formed at depth similar to those found at Clayton Valley. In 1979, the U.S. Department of Energy, through the U.S. Geological Survey, conducted a regional lithium project which included sampling, gravity and seismic surveys on the TNR property. TNR staffs are developing an integrated regional lithium exploration approach using geochemical and basin modelling with gravity, electromagnetic and geochemical fieldwork to build drilling targets. The TNR exploration team has extensive geochemical, GIS modelling and targeting experience on four continents.

Gary Schellenberg, president of TNR Gold, states: "The Mud Lake property acquisition further exemplifies our overall strategy to acquire lithium and rare metal projects of merit worldwide. TNR is now well positioned in Nevada with the Mud Lake property and its Fish Lake Valley property, which is located 34 kilometres west of Chemetall-Foote Corp's Silver Peak operation in Clayton Valley."

TNR has agreed to make payments totalling $260,000 (U.S.) over a four-year period, issue one million common shares of TNR over a three-year period and commit to work expenditures totalling $1-million (U.S.) over a four-year period. TNR has agreed to pay a royalty of 3 per cent to the vendor and has the right to purchase the royalty for $3-million (U.S.) at anytime. TNR also has the option to reduce the royalty by paying the vendor $1-million (U.S.) for each 1 per cent (1/3) at anytime.

For more information about lithium deposits, production, markets and news please refer to TNR's "About lithium" page on its website.

John Harrop is the company's qualified person on the project as required under NI 43-101 and has reviewed the technical information contained in this news release.

The agreement is subject to TSX Venture Exchange approval and any regulatory approvals.

We seek Safe Harbor.