Option Agreement Entered To Purchase Cimarron Gold Prospect

CALGARY - Crestview Exploration Inc. has entered into an option agreement with Nevada Select Royalty, a wholly-owned subsidiary of Ely Gold Royalties Inc., whereby Crestview will have the option to purchase 100% of the Cimarron gold prospect with Nevada Select retaining a 2.5% Net Smelter Royalty (NSR).

The Cimarron gold prospect is a high-grade epithermal gold target associated with the historic San Antonio mine. The prospect is located in Nye County, Nevada approximately 30 kilometers North of the mining town Tonopah, NV. The Cimarron gold prospect is situated in the northern portion of the San Antonio Mountain Range. Regionally, the property is at the intersection of two prominent gold trends: The Walker-Lane trend which runs approximately NW and hosts a number of mines; and an approximately NNE trend of gold mines.

The property is comprised of 13 unpatented lode claims which overlap and control the 6 historically-producing claims around the San Antonio mine. The San Antonio mine was active from the early 1900's to the 1940's, and the mine area received attention again in the 1980's from a number of exploration companies. During this time, a shallow oxide gold resource was calculated and outlined, but never extracted. The historic resource outlined includes a West, Central, and East target which totals greater than 50,000 ounces of gold.

The deposit is hosted in a series of Oligocene age volcanic rocks overlying Paleozoic strata, and younger Miocene age intrusions. The target is a shallow, low sulfidation oxide gold system with strong structural control. The mineralization is associated with silicification, brecciation, and iron oxides. The company plans to begin drilling operations in the near term, with a focus on validating the historical drill data acquired with the property. Subsequent work will be conducted to establish a 43-101 compliant resource.