Mainstream to Acquire Champagne Resources

TORONTO, ONTARIO--(Marketwired - March 13, 2014) - Mainstream Minerals Corporation (TSX VENTURE:MJO) ("Mainstream" or the "Company") and Champagne Resources Limited ("Champagne") are pleased to announce that on March 12, 2014, Mainstream, Champagne and a wholly-owned subsidiary of Mainstream ("Subco") entered into an amalgamation agreement (the "Amalgamation Agreement") whereby Mainstream will acquire all of the issued and outstanding shares of Champagne, an arm's length party (the "Transaction").

Pursuant to the Amalgamation Agreement, Mainstream, Subco and Champagne have agreed to complete the Transaction pursuant to which, among other things, Subco and Champagne will amalgamate pursuant to the provisions of the Business Corporations Act (Ontario) to form a wholly-owned subsidiary of Mainstream ("Amalco"), and each Champagne shareholder (other than a Champagne shareholder who exercises dissent rights) will be entitled to receive two (2) common share of Mainstream (each, a "Mainstream Share") for every one (1) common share of Champagne (a "Champagne Share") held by such Champagne shareholder. As a result, 53,777,454 Mainstream Shares will be issued to former Champagne shareholders, on a non-diluted basis, to acquire a 100% interest in Champagne.

Upon completion of the Transaction, each holder of the outstanding 13,802,014 common share purchase warrants (the "Champagne Warrants") of Champagne will receive two (2) replacement common share purchase warrants of Mainstream, having the same terms as the Champagne Warrants, as applicable, but shall be exercisable at a price equal to half the exercise price of the Champagne Warrant being exchanged.

In connection with the Transaction, Chris Hopkins will be appointed Chief Executive Officer and a director of Mainstream. Mr. Hopkins has over 25 years of experience in financial management, mergers & acquisitions, strategic planning, investor relations, corporate governance and financial & management reporting primarily in the mining sector. Champagne's existing geological team will also continue as part of the newly merged company.

Champagne's principal property is the Goodfish Kirana Property, located 5 km north of Kirkland Lake, Ontario, which is comprised of contiguous mining claims covering approximately 3,330 hectares. Further details including a recent technical report can be found on Champagne's website at www.champagneresources.com.