Sokoman Iron Corp Signs LOI with Metals Creek Resources Corp. on Clarks Brook Gold Property, Central Newfoundland

Puslinch, Ontario (FSCwire) - Sokoman Iron Corp. (Sokoman) (TSX-V: SIC), and Metals Creek Resources Corp. (TSX-V: MEK) (Metals Creek) are pleased to announce that they have signed a Letter of Intent (LOI) with outlining terms whereby Sokoman can earn up to 100% interest in the Clarks Brook Gold Property, located in central Newfoundland, pending TSX Venture exchange approval.

Highlights of the property include;

1. Maximum grab samples in boulders to 24.5 g/t gold; maximum in bedrock to 19.24 g/t gold;
2. the property is fully permitted for drilling;
3. project approved for financial assistance (JEA) from the provincial government;
4. Located on Central Newfoundland Gold Trend in structural corridor hosting Valentine Lake (Marathon Gold Corp.) and Antler Gold projects

The Clarks Brook prospect was staked by vendor Metals Creek after a review of past work completed on the property and initial due diligence performed on the showing.  The gold mineralization outlined on the Clarks Brook Property consisted of mineralized (silicified and disseminated pyrite/arsenopyrite bearing siltstone) angular boulders up to 3 meters in size initially discovered by Altius Minerals Corporation in 2004, and which has reported historic assays ranging from 2.98 g/t to 24.5 g/t gold.  In 2009, Altius completed an Induced Polarization (IP) and Magnetics ground geophysical survey that outlined several targets but no drilling has been done on the geophysical or gold targets.

Subsequent field work by the vendor (MEK) resulted in the discovery in bedrock of similar style mineralization to that of the boulders returning a grab sample assay of 19.24 g/t gold. In addition, thirteen (13) of the large angular blocks were sampled and yielded assays ranging from 0.24 g/t to 10.4 g/t gold.  Metals Creek has applied for and received drilling permits for the Clarks Brook Property.

To earn an initial 75% interest, Sokoman must make cash payments of $45,000 over three years (no cash on signing) and issue a total of 3,000,000 Sokoman common shares over three years (500,000 due upon regulatory approval) and incur work expenditures of $800,000 over three years ($100,000 by 1st anniversary).  Sokoman will be the operator during the earn-in period.  Once a 75% interest is earned by Sokoman, either a 75/25 joint venture will be formed, or Sokoman may elect to earn an additional 25% interest to bring its total property interest to 100%.  The terms to increase its interest from 75% to 100% include payments of $100,000 and the issuance of an additional 2,000,000 Sokoman shares within 60 days of the 3rd anniversary date.  This agreement is subject to regulatory approval.

Note: The MEK surface grab samples mentioned in this news release were grab samples which are selective by nature and are unlikely to represent average grades of the property.

Timothy Froude, P. Geo., Interim CEO states; “The acquisition of Clarks Brook provides Sokoman and its shareholders with a drill ready property in the active Central Newfoundland Gold Play.  Metals Creek is a strong supporter and shareholder of Sokoman and the property is a good fit for both companies.  The property has significant gold grades, and has never been drill tested.  The added bonus of being pre-approved for JEA assistance (partial reimbursement of exploration expenditures) makes this project extremely attractive.  We will be moving forward with plans to fund, and carry out a Phase 1 drilling program, as quickly as possible.”

This news release has been reviewed and approved by Timothy Froude, P. Geo., a "Qualified Person" under National Instrument 43-101 and Interim CEO for Sokoman Iron Corp. For further information please contact Timothy Froude at 709-765-1726, or by email at  tfroude@sokomaniron.com 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 release.

Investors are cautioned that trading in the securities of the Corporation should be considered highly speculative. The TSX Venture Exchange Inc. has neither approved nor disapproved the contents of this press release. Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties.  Actual results may differ materially.  Sokoman Iron Corp. will not update these forward-looking statements to reflect events or circumstances after the date hereof.  More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Sokoman Iron Corp. 

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