Oakham Announces Qualifying Transaction - Seite 2

The Frederickson-NW occurrence includes two conformable lenses of polymetallic massive sulfides hosted in black mudstone belonging to the Menihek Formation. In addition to the main massive sulfide horizon, a second highly altered sulfide-rich horizon located 20m under the first one remains to be tested.

The Frederickson-NW occurrence was last explored in 1956 when a campaign of 1,513 meters of diamond drilling was carried out. In 1984, the Ministère des Ressources Naturelles carried out a regional helicopter-borne Mag-EM survey. This survey reveals a direct lateral continuity of the mineralized horizon on both sides. In addition, multiple geophysical targets remain untested throughout the Property.

The prospective Menihek Formation extends for more than 160km by 10km and hosts various base and precious metals associated with exhalative massive sulfides. In the Labrador Trough, such occurrences have economic potential because of their relatively high metal grades and the fact that the occurrences occur in laterally extensive sedimentary formations. This type of occurrence shows potential due to similarities in context with the Zn-Pb-Cu deposits of the Bathurst-Newcastle camp in New Brunswick.

Proposed Transaction

Oakham has agreed to acquire the Property in consideration of:

1. issuing 11,000,000 common shares to the Vendors, such shares to be subject to such resale restrictions as required in accordance with Exchange policies and applicable securities legislation; and

2. granting to the Vendors a 2% net smelter returns royalty from all production from the Property of which one-half (1%) may be re-purchased for $500,000; and the remaining half (1%) may be re-purchased for $1,000,000.

Completion of the Transaction is subject to a number of conditions precedent, including, but not limited to:

a) Acceptance of the Transaction by the Exchange;

b) Change of Oakham's board of directors and officers (as described below);

c) Completion of a private placement of at least $750,000 (the "Financing") comprising of a combination of flow-through units ("FT Units") at $0.12 per FT Unit and non-flow-through units ("NFT Units") at $0.10 per NFT Unit. Each FT Unit will consist of one flow-through common share and one-half share purchase warrant ("Warrants") with each full Warrant exercisable at $0.20 per share for a period of 12 months. Each NFT Unit will consist of one common share and one Warrant.