VANCOUVER, Sept. 22, 2016 /CNW/ - Eureka Resources Inc. ("Eureka"
or the "Company") (TSXV: EUK) is pleased to announce the finalization of the Definitive Agreement on the Gemini Lithium
Project (the "Agreement") for its 50% Joint Venture ("Gemini", or the "Project") with Nevada Sunrise Gold Corp. (TSXV: NEV, "Nevada
Sunrise").
Michael Sweatman, CEO of Eureka, stated, "The finalization of the Agreement sets the stage for
exploration of our Gemini lithium project in Nevada. The Gemini Project is an exciting opportunity
to continue in our commitment to add value for our shareholders by taking on relatively low cost projects which we believe have
potential."
The exploration program for the Gemini Project is estimated to cost approximately US$400,000.
Eureka is required to contribute 50% of these costs (US$200,000) to maintain its 50% interest. The
Company is also pleased to announce that all of the pre-requisites to commence a drilling program at Gemini have been completed,
including receipt of the drilling permit from the BLM, the placement of a reclamation bond, and surficial cultural studies.
Gemini Lithium Project
Eureka owns a 50% participating interest in the Gemini lithium brine project, located in the western Lida Valley, located in Esmeralda County in south central Nevada, approximately 40 kilometres (26 miles) from North America's only
producing lithium mine at Silver Peak. Gemini currently consists of 247 placer claims totaling 4,940 acres (2,000 hectares).
The Gemini project is located in a flat, desert basin hosting two interpreted sub-basins and with a similar geological setting to
the Clayton Valley. Recent geophysical work at Gemini has outlined conductive zones interpreted as brine horizons, which the
Company plans to test by drilling.
In August 2016, Nevada Sunrise granted Advantage Lithium Corp. (TSXV: AAL, "Advantage") an option
for Advantage to earn a 50% interest in Gemini as part of a transaction involving 5 lithium properties, including Gemini. Upon
exercise of the option earn-in by Advantage, Nevada Sunrise would relinquish its 50% interest in Gemini, and retain a 2% gross
overriding royalty in the Project.
FG Project
Eureka has held the FG Property (formerly called Frasergold) since 1982. To date, over $15.0
million of exploratory work has been completed by the Company, ASARCO, AMOCO and Hawthorne Gold Corp. The historical
exploration has established a Measured and Indicated (376,000 ounces) gold resource at an average grade of 0.776 g/t gold, using a
cut-off grade of 0.5 g/t, and an Inferred gold resource (634,900 ounces) at an average grade of 0.718 g/t gold, using a cut-off
grade of 0.5 g/t. Mineralization has been outlined over a strike length of 3 kilometres, and has the potential for additional
mineralization that could extend along an interpreted strike length of over 10 kilometres. Details of the gold resource can be
found in "NI 43-101 Technical Report, Frasergold Exploration Project, Cariboo Mining Division, dated July
27, 2015" available on SEDAR or at the Company's website. The Company recently granted an option to Canarc Resource Corp
(TSX CCM). ("Canarc") which provides Canarc the ability to earn a 75% interest in the project.
John R. Kerr, P.Eng., is the Company's designated Qualified Person for this news release
within the meaning of NI 43-101 and has reviewed and approved the technical information described in this news
release.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation that are not
historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results,
performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements.
Forward-looking statements in this news release include, but are not limited to, statements with respect to the Company's proposed
financings, objectives, goals and future exploration plans at the Gemini Project, the costs related to the Company's proposed
exploration programs, the Company's intention to close additional tranches under the Offering and the business and operations of
the Company. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered
reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future
events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not
limited to: failure to close additional tranches under the Offering, general business, economic and social uncertainties;
litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; delay or failure to
receive board or regulatory approvals; those additional risks set out in the Company's public documents filed on SEDAR at www.sedar.com; and other matters discussed in this news release.
Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable,
undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can
be given that such events will occur in the disclosed time frames or at all. Except where required by law, the Company disclaims
any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future
events, or otherwise.
SOURCE Eureka Resources, Inc.
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