Prosper Gold Corp. Acquires Red Lake Projects - Seite 2

Twenty-three holes totaling 2,472 meters were drilled in March 2008. Drilling intersected gold mineralization in the primary target "Bathurst Mine Horizon" and discovered a second horizon with high-grade gold mineralization, including 45.96 g/t gold (1.34 oz/t gold) over 1.70 meters 420m west of the Bathurst Mine. The diamond drilling of the "Bathurst Mine Horizon" and the new "Upper Bathurst Mine Horizon" confirmed the presence of multiple gold bearing structures with further potential along strike and at depth.

Skinner Project (146 Mineral Claims)

The Skinner project is adjacent to and south of the Golden Sidewalk. Gold was discovered there by Thomas Dunkin in 1926. Dunkin Gold Mines was incorporated in 1928 and a 271-foot (83m) shaft was sunk to follow-up on the high-grade gold veining observed on surface. No production was reported. Other high-grade gold occurrences on the claims include the Dunkin II (grab samples up to 73 g/t gold) and Vihonen (grab samples up to 182 g/t gold).

In 1993, the Geological Survey of Canada released results from a basal till sampling program performed in the Red Lake area (Open File 2583, 1993 by D.R. Sharpe). Follow-up work traced the survey findings up ice towards magnetic anomalies located at or near the Balmer/Confederation Assemblage contact. The gold grains are less rounded and mechanically worn (more pristine), which can reflect a local source. In summer and fall 2003, Teck carried out extensive exploration including a detailed airborne magnetometer survey, aerial photography, geological mapping and rock sampling, rock geochemical survey, and till sampling. (refer to Figure 1.)

Teck’s till sampling identified many samples with pristine gold grains in a down-ice dispersal zone measuring 5km wide 3 km long area concentrated along a regional unconformity. More detailed till sampling and a reconnaissance induced polarization (“IP”) survey were recommended to define follow-up drill targets.

Figure 1. Golden Sidewalk / Skinner Gold property geological plan showing claim boundaries and associated historical till and rock sample assay results is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/54e5a908-873c-4c62 ...

Key Terms of Option Agreement

The Option Agreement on the Properties calls for the Company to pay $50,000 cash,  issue up to 1,500,000 Prosper Gold shares (on a post-consolidation basis (see “Corporate Update” below)), and for work expenditures totaling $2,600,000 over 4 years in order for the Company to earn a 100% interest in the Properties. Details of the Option Agreement will be available on the Company’s SEDAR profile at www.sedar.com.