REM NRJune 10, 2008
Remstar Acquires Coal Lease Applications
VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 10, 2008) - Remstar Resources Ltd. (TSX VENTURE:REM)(FRANKFURT:W2U)(WKN:A0HM01) ("Remstar" or "the Company") is pleased to announce that it has entered into a Letter of Intent with Jody Dahrouge ("Dahrouge"), pursuant to which the Company acquired 24 coal lease applications in proximity of the significant Goldsource Mines Inc. coal discovery, in east-central Saskatchewan. The coal lease applications encompass approximately 45,545 acres, northwest of Hudson's Bay Saskatchewan.
As consideration for the acquisition, upon signing of a formal agreement, the Company shall pay $37,500 to Dahrouge and issue 250,000 common shares, of which 125,000 shares shall be issued within 10 business days of TSX Venture Exchange acceptance of the transaction and 125,000 shares to be issued within 10 business days of receipt of the formal coal permits covering the aforementioned lands.
Dahrouge will retain a $2/tonne royalty on all coal mineral production from the permits, of which 50% of the royalty may be acquired by Remstar for $1 million. In addition, if exploration of the lands leads to the acquisition of other mineral rights, Dahrouge will retain a 2% NSR on those mineral rights, of which 50% of the NSR may be acquired by Remstar for $1 million.
The coal leases are underlain by sandstones and shales of the Cretaceous aged Mannville Group. Given that the Mannville Group is host to the Goldscource discovery, the company believes that the area provides a very favorable environment for additional coal occurrences of a similar magnitude to those recently announced by Goldsource on April 28, 2008. Coal fields within the Western Canada Sedimentary basin can extend for hundreds of kilometers and encompass several thousand square kilometers.
Approximately 30 km to the southeast of the property, a coal discovery was reported in a drillhole from a 1994 program. The discovery was made by Consolidated Pine Channel Gold Corporation, while drilling a magnetic anomaly for kimberlite. The historic drill log from Hole TL02-2 (Assessment Report 63E-0004) reports that an 18.84m wide coal interval was intersected as follows:
- 47.70 to to 55.32 m (7.62 m): Coal, massive
- 55.32 to 66.54 m (11.22 m): Coal Breccia, which consists of intermixed clay, coal, and minor sand/silt.
Although the coal was not analyzed at the time, the magnitude of coal reported within the aforementioned interval is similar to the Goldsource discovery (26 m and 32.5 m thickness), and confirms the regional potential for significant thicknesses of coal within Mannville aged rocks of east-central Saskatchewan.
"Goldsource Mines has made a recent major coal discovery in Saskatchewan, which could become the start to a significant coal mining region," said Marc Levy, CEO Remstar.
Remstar is continuously active in reviewing quality assets in the energy sector, including coal and oil and gas.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the Company by Ross McElroy, P.Geol., a qualified person.
About Remstar Resources Ltd.:
Remstar Resources is an exciting, rapidly-growing organization dedicated to acquiring and developing significant opportunities in the energy and resource sectors. Remstar Resources is committed to the aggressive pursuit of properties with high return-on-investment and maximizing the value of assets through disciplined process of assessment, responsible acquisitions, and intentions of taking acquired properties from exploration into production.
ON BEHALF OF THE BOARD OF DIRECTORS,
REMSTAR RESOURCES LTD.
Marc Levy, President & CEO
We seek Safe Harbor.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.