Ms. Cathy Fong reports
UPDATE ON FINANCING AND ACQUISITIONS
Lucky Strike Resources Ltd. is providing an update on its privateplacement announced in Stockwatch on Dec. 7, 2010, and on its proposedacquisition of the Changyun coal mine as announced in Stockwatch on Aug.10, 2010.
The company wishes to clarify the intended use of the proceeds from theproposed non-brokered private placement to raise aggregate grossproceeds to the company of $2.4-million by the issuance of units of thecompany, as previously announced in Stockwatch on Dec. 7, 2010. The netproceeds of the private placement will be used for general workingcapital purposes and to identify, evaluate, and secure potentialacquisitions of mineral properties and mineral interests in China andinternationally. The proceeds of the private placement are notspecifically designated for any particular project at this time. Theclosing of the private placement is expected to occur on or before Feb.4, 2011.
On Aug. 10, 2010, and Oct. 29, 2010, the companyannounced in Stockwatch that it had entered into a letter of intent withCheung Wan (Groups) Energy Development Ltd. for the proposedacquisition by the company of up to an 80-per-cent interest in theChangyun coal project in Guizhou province, China. The acquisition issubject to a number of conditions, including due diligence and thenegotiation and preparation of a definitive agreement. The companycontinues to conduct due diligence on the Changyun coal project and thevendors and is attempting to address all of the issues in itsnegotiations. The letter of intent was subsequently amended on Oct. 26,2010, and based on the company's due diligence, the structure andmaterial terms of the acquisition continue to be subject to continuingdiscussions and negotiations. It is uncertain if or when the partieswill be able to reach agreement on the material terms or structure of atransaction regarding the Changyun coal project or if a transaction willbe completed at all. The company will provide further updates whenwarranted.The company is concurrently continuing to investigate other potentialproperty acquisitions and will provide further updates as and when thecompany enters into any agreements with respect to same.
We seek Safe Harbor.