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TNR Gold to option Sarcobatus from Tonogold Resources

2009-11-10 14:59 ET - News Release

Mr. Gary Schellenberg reports

TNR GOLD/INTERNATIONAL LITHIUM INCREASE NEVADA POSITION, SARCOBATUS FLATS-LITHIUM BRINE PROJECT

TNR Gold Corp. and its wholly owned International Lithium Corp. have signed a letter agreement to acquire up to a 100-per-cent interest in the 1,076-hectare Sarcobatus Flats lithium brine property, located 109 kilometres south of Tonopah, Nye County, in Nevada, from Tonogold Resources Inc. of La Jolla, in California.

Summary:

• Acquires 1,076-hectare Sarcobatus Flats property;
• An underexplored analogue to the producing lithium brines at Clayton Valley;
• TNR will focus on advancing its highly prospective Nevada projects.

Gary Schellenberg, president of TNR, states: "Our objective is to become one of the foremost companies in the Nevada lithium exploration and development sector. The acquisition of the Sarcobatus Flats property is a definitive step towards achieving our goal."

Sarcobatus Flats is a desert playa lake located in Western Nevada along Route 95, approximately 109 km south of Tonopah and 72 km southeast of Clayton Valley, the location of the producing Silver Peak world-class lithium brine deposit. The Sarcobatus Flats project consists of 105 placer claims totalling 1,076 hectares.

The acquisition of the new claims was prompted by the highly anomalous concentrations of lithium, ranging between 210 and 340 parts per million Li, encountered from a preliminary surface sediment sampling program conducted on the Sarcobatus Flats claim group. There are also several important similarities between the settings of Sarcobatus Flats and a Clayton Valley-type lithium brine deposit. The property is located in a closed structural basin. It contains similar stratigraphy and occupies a lacustrine environment similar in regional hydrogeography and geochemistry to Clayton Valley. In essence, Sarcobatus Flats represents an underexplored early-stage analogue to Clayton Valley.

To earn a 100-per-cent interest, TNR has agreed to make payments totalling $130,000 (U.S.) and issue 675,000 common shares over a four-year period. The vendor will retain a 2.5-per-cent royalty of which TNR has the right to purchase up to 2 per cent of the royalty by paying Tonogold $1-million (U.S.) per 1 per cent purchased, for a total of $2-million (U.S.), thereby reducing Tonogold's NSR to 0.5 per cent. The agreement is subject to regulatory approval.

TNR intends to explore its Nevada properties and determine if lithium evaporates and brine deposits have formed, similar to those found at Clayton Valley. It is developing an integrated regional lithium exploration approach using geochemical and basin modeling with gravity, electromagnetic, hydrogeological, and geochemical fieldwork to identify drill targets. The TNR exploration team has extensive geochemical, GIS modeling and targeting experience across four continents, with specific expertise in lithium and other rare metals.

John Harrop, PGeo, is TNR's qualified person on the project as required under NI 43-101. He has reviewed the technical information contained in this press release.

We seek Safe Harbor [/quote]