Clarification To: Galore Enters Agreement to Begin Mining Los Gemelos
Vancouver, January 19, 2018 - Galore Resources Inc. (TSX-V: GRI) (the "Company") At the request of the Investment Industry Regulatory Organization of Canada (IIROC), the Company wishes to clarify certain disclosures in its' January 17, 2018 News Release. With respect to the announcement that it has entered into a 5-year contract with URBYASA" to extract available gold at Galore's 100% owned Duraznillo Ranch, which includes the Los Gemelos and Duende 7 claims. This decision to proceed with URBYASA is not based on a feasibility study of mineral reserves demonstrating the economic or technical feasibility of the project. There are known risks to such projects but the risks lie with URBYASA. URBYASA has reviewed the available data on Los Gemelos and has taken independent sampling. URBYASA has been independently mining for over 15 years in Mexico and has experience mining in the Conception Del Oro mining district. URBYASA has other active mines that are located in Nuevo Leon and Colima Mexico. URBYASA will install a gold processing plant with an initial capacity of 90 tons per week. They will also install a new water well, improve utilities to the property, improve road access and install a new entrance to the property. URBYASA will carry all necessary insurance needed for damages or loss of any kind and will be responsible for all permits, fees, duties, taxes and insurance associated with the Mining Law and other federal, state and local laws. They will carry out the extraction of mineralized material and sale of any concentrated gold on a monthly basis, with any proceeds, net of costs, as reported by URBYASA, being allocated forty percent (40%) to Galore and sixty percent (60%) to URBYASA. This arrangement applies to any material that is processed at the Duraznillo plant that is mined from other properties owned by URBYASA. Galore will retain the rights on all other minerals extracted at the Galore claims and there is a 100-meter depth limitation on production. Full plant operation is to be commenced within the next 90 days. The contract will terminate if URBYASA fails to commence production in 90 days.
The contract with URBYSA, Urbanizaciones Y Acabados S.A. De CV, is with the Company's wholly owned subsidiary, Minerales Galore S.A. De CV.
ON BEHALF OF THE BOARD
"Michael McMillan"
President and CEO
To find out more about Galore Resources (TSX.V:GRI) please contact:
Mike McMillan at (210) 860-9212 (USA)
Please visit our website at www.galoreresources.com or contact us at mike@galoreresources.com.
Cautionary Statement
This document contains "forward-looking statements" within the meaning of applicable Canadian securities regulations. All statements other than statements of historical fact herein, including, without limitation, statements regarding exploration plans and other future plans and objectives, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and future events and actual results could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from our expectations as well as a comprehensive list of risk factors are disclosed in the Company's documents filed from time to time via SEDAR with the Canadian regulatory agencies to whose policies we are bound. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and we do not undertake any obligation to update forward-looking statements should conditions or our estimates change, other than as required by law and readers are further advised not to place undue reliance on forward-looking statements.
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.
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