Nevada Exploration Signs Letter of Intent for Earn-In Agreement on its Kelly Creek Project - Seite 2

Both the earn-in and joint venture agreement and the private placement contemplated under the LOI are subject to receipt of all necessary regulatory and TSX Venture Exchange approvals.  All dollar amounts are in Canadian dollars.

Kelly Creek Project

NGE’s Kelly Creek Project is located along the Battle Mountain – Eureka Gold Trend within the larger Kelly Creek Basin, which is bounded by multi-million-ounce gold deposits to the north (Twin Creeks, Getchell, Turquoise Ridge, and Pinson) and south (Lone Tree, Marigold, Trenton Canyon, Converse, Buffalo Valley, Copper Basin, and Phoenix) - together representing more than 70 million ounces of gold along the periphery of the basin.  The Project consists of a combination of unpatented mining claims held by NGE through its wholly-owned subsidiary Pediment Gold LLC (“PGL”) (24 km²); unpatented mining claims leased by PGL from a third party under a Mining Lease and Option to Purchase Agreement (15 km²); and private land leased by PGL under a Mining Lease Agreement (14 km²), for a district-scale land package totalling 53 km².

Despite its proximity to significant mineralization, the interior of the Kelly Creek Basin has seen limited systematic exploration activity to date because its bedrock is largely covered by syn- to post-mineral volcanic units and post-mineral alluvium.  Recognizing the potential to find significant gold mineralization within the Kelly Creek Basin, dozens of major and junior explorers have spent tens of millions of dollars to follow the prospective geology seen in and proximal to the exposed bedrock in the surrounding mountain ranges beneath the sands and gravels covering the Basin.  Within the Project area, this activity has included: Santa Fe Pacific completing wide-spaced bedrock-mapping drilling in the 1990s; BHP completing an extensive soil auger geochemistry program through the late 1990s; and Placer Dome completing a reconnaissance-scale reverse circulation program in the early 2000s.  Other companies that either now hold or have held claims in the immediate area include Newmont, Barrick, AngloGold, Hemlo, Homestake, and Kennecott.  The efforts of each company have added valuable information about the geology of the Basin; however, without a cost-effective tool to conduct basin-scale exploration beneath the valley cover, the exploration programs to date in the Kelly Creek Basin have predominantly consisted of uncoordinated efforts focused on relatively small areas.