Acquisitions Further Expands Pipeline Of Exploration Projects

VANCOUVER - Barksdale Resources Corp. has entered into a definitive agreement to acquire a 100% interest in two copper exploration projects, located in Santa Cruz County, Arizona from Kennecott Exploration Company, a wholly owned subsidiary of Rio Tinto Group. Acquisition of the Goat Canyon and Canelo copper projects is an excellent strategic fit within Barksdale's Arizona project portfolio as it more than doubles the property position within the Patagonia mining district.

Investment Highlights: Low-cost acquisition that further consolidates a world-class district, more than doubling Barksdale's footprint to approximately 30,910 acres from approximately 12,300 acres; Addition of two copper porphyry exploration projects in Arizona, the largest copper producing state; Multiple high-quality exploration targets within a district that hosts multiple prolific copper porphyry deposits; and Acquisition includes geophysical survey data covering the new projects as well as Sunnyside and San Antonio.

Rick Trotman, President and CEO, said, "This acquisition further expands our exciting pipeline of exploration projects within the Patagonia mining district. I am excited to not only more than double our footprint within this prolific mineral district, but also add several high-quality copper porphyry drill targets to the portfolio."

Goat Canyon is an early-stage porphyry copper-molybdenum exploration project located approximately 10 km northwest of Barksdale's Sunnyside project in Santa Cruz County, Arizona. The property consists of 430 federal mining claims that cover approximately 8,650 acres, as well as two Arizona State Land Department exploration leases that cover an additional 1,254 acres.

Previous geologic mapping and sampling programs have identified a 5 x 3 km zone of strong to moderate hydrothermal alteration containing stockwork quartz veining indicative of a buried porphyry copper deposit. Numerous outcropping altered and mineralized quartz monzonite porphyry dikes of Laramide age have been identified on the property as well as a broad occurrence of polymetallic copper-lead-zinc-manganese veins that strike east-west and vector towards the zones of stronger alteration. There appear to be multiple target areas that have coincident magnetic, resistivity and radiometric geophysical anomalies that are further supported by 468 soil samples and 104 rock chip samples that are elevated in base and precious metals.

The Canelo project is an early-stage copper porphyry and skarn/CRD exploration project located within the Patagonia mining district, approximately 10 kilometers north-northeast of the Company's Sunnyside project in Santa Cruz County, Arizona. The property consists of 433 federal mining claims that cover approximately 8,700 acres.

Geologic mapping and geophysical survey data suggest that the area is underlain by one or more Laramide age intrusives, which are responsible for almost all of the known porphyry copper deposits in Arizona. The multi-phased intrusive event has altered the surrounding rocks from which surface mapping has identified several alteration patterns indicative of a hydrothermal system at depth. Historic surface sampling, including nearly 1,200 soil samples and approximately 50 rock chip samples, has identified a large 3 x 6 km soil anomaly that averages 200 ppm copper, 80 ppm lead and 185 ppm zinc.1 Sedimentary units that are suitable for the formation of adjacent high-grade skarn and outwardly zoned carbonate replacement deposits are thought to occur at depth and could be cut by Laramide intrusives. Deposits such as these are known to host very large resources in Arizona, such as those seen at the Sunnyside-Taylor complex, located 10 km to the east.

Barksdale has entered into a definitive agreement to acquire 100% of the Canelo and Goat Canyon projects from Kennecott Exploration Inc., as well as certain raw geophysical data that covers the Company's Sunnyside and San Antonio projects. Consideration for the projects and data consisted of US$35,000 in cash, which was paid on closing of the transaction as well as a 2.0% net smelter return ("NSR") royalty that covers both properties. Barksdale will retain the right to repurchase half of the NSR at any time for a cash payment of US$10,000,000. In the event that a mine is put into production on either property, a one-time cash payment of US$3,500,000 will be payable to Kennecott upon reaching commercial production.