Agreement Signed For Acquisition Of Advanced Gold-Silver Project Adjacent To Santa Fe

TORONTO - Lahontan Gold Corp has signed a binding term sheet with a wholly-owned subsidiary of Emergent Metals Corp to acquire the advanced West Santa Fe gold-silver exploration project (West Santa Fe aka Mindora), located only 15 km West of Lahontan's  asset, the Santa Fe Mine, in Nevada. West Santa Fe hosts an oxidized gold-silver mineralized system in a geologic setting nearly identical to Santa Fe. Previous exploration drilling at West Santa Fe totals over 13,000 meters in 171 drill holes; only five holes are deeper than 165 meters. Modeling of drill hole data by Lahontan geologists outlines a shallow gold and silver system with a sufficient volume to host 0.5 to 1.0M ounces of oxidized gold and silver mineralization in an open-pit mining configuration.

Kimberly Ann, Founder, CEO, President, and Director, said, "The acquisition of West Santa Fe will be a significant milestone for Lahontan: A "bolt-on" asset which is accretive to the Santa Fe Mine that has the potential to add significant oxide gold and silver resource ounces for the Company. Back-end loaded, the Term Sheet allows Lahontan to conduct a definitive exploration program on the property with low monetary commitment by Lahontan, yet provides exposure to considerable resource upside. Combined with the continued organic growth of gold and silver resources at the Santa Fe Mine through drilling, West Santa Fe can help Lahontan accelerate the value-creation process for its shareholders by controlling multiple Top-Shelf precious metal exploration and mine development projects in a Tier One mining jurisdiction."

Gold and silver mineralization at West Santa Fe occurs as a sediment-hosted epithermal Au-Ag system hosted by Triassic age carbonate and volcanic rocks, a setting very similar to the Santa Fe Mine. Shallow gold and silver mineralization are localized to East-Northeast trending faults and offset by Northwest striking faults, a classic Walker Lane setting. In addition to over 13,000 meters of drilling, previous exploration activity at West Santa Fe includes: Geophysical studies including IP and aerial magnetic surveys, geochemical surveys including over 1,250 soil samples, and detailed geologic mapping.