Gossan Receives the Second $350,000 Manigotagan Payment from Claim Post

WINNIPEG, MANITOBA--(Marketwired - Dec. 8, 2014) - Gossan Resources Limited (TSX VENTURE:GSS)(FRANKFURT:GSR) (Frankfurt/Freiverkehr & Xetra:WKN 904435) has today received a second $350,000 cash payment from Claim Post Resources Inc. (TSX VENTURE:CPS) pertaining to the sale of its Manigotagan Silica Frac Sand Project, comprised of 9 quarry leases located near Seymourville, Manitoba. On June 18, 2013, Gossan agreed to sell the Manigotagan Project to Claim Post under the terms of a sale agreement. Gossan has previously received 3,000,000 common shares of Claim Post and a first cash payment of $350,000. The agreement requires one further cash payment of $430,000 due June 18, 2015, as well as, a royalty interest thereafter.

An initial annual advance royalty payment of $50,000 becomes payable as of June 18, 2016, unless the operation has commenced commercial production resulting in the payment of production royalties. All frac sand produced, sold and paid from the nine Manigotagan leases is subject to a $1.00 per tonne production royalty payable quarterly and all other products are subject to a $0.50 per tonne production royalty. Although the royalty is solely payable on production from the Manigotagan leases, the agreement also provides for a minimum production royalty from both the Manigotagan and the adjacent Seymourville Property held by Claim Post, based on their relative remaining mining reserves of frac sand. Claim Post can acquire one-half of Gossan's production royalty interest for $1.5 million at any time after making all of the required property payments.

On December 5, 2014, Claim Post announced that it has started a 20-hole sonic drill program on the Seymourville Frac Sand project. The drill program is designed to quantify the tonnage of sand on the Gossan leases; confirm historical drilling; and to support an Indicated Mineral Resource.

Claim Post anticipates developing the Seymourville Deposit as a source of frac sand for use as a proppant in hydraulic fracturing in the oil and gas industry.

Douglas Reeson, President of Gossan Resources stated: "Claim Post's initial NI 43-101 resource calculation has defined an Inferred Resource of over 25 million tonnes silica sand on the Seymourville Frac Sand Project and it will update the resource calculation to reflect the 20-hole sonic drill programme now underway. Claim Post's NI 43-101 PEA is highly encouraging of a production decision with a base case providing a 4.4 year payback and an after-tax IRR of 21%. The Manigotogan deposit, if put into production, should provide Gossan with significant royalty payments over the next two decades. Gossan also participates in the development of the Seymourville Frac Sand Project through its equity holdings in Claim Post."