LOI Signed On Scorpius High-Sulphidation Gold Project

TORONTO - Sable Resources reported the signing of a Binding Letter of Intent with Alpha Mining to acquire 100% of the 400 hectare Scorpius High-Sulphidation Epithermal Gold Project, located in the prolific Miocene Gold Belt of Central Peru.

Historic non-43-101 compliant 1m channel samples at the Scorpius Project returned values between 0.1 and 7.7g/t Au and define a 1km by 0.5km anomalous area coincident with silica ledges, quartz-alunite alteration and high-sulphidation pathfinders similar to Sables' Don Julio project located in San Juan Province, Argentina. The Scorpius Project has not previously been drilled.

"The Scorpuis deal is directly inline with our ongoing Upper Level Epithermal Strategy successfully implemented in Mexico and Argentina," commented Terry Harbort, Vice President of Corporate Development for Sable. "We see Peru as one of Latin Americas most stable and prospective mining jurisdictions. Coupled with our extensive operational experience and geological knowledge in the country and the field indications evident at Scorpius, we are pleased to have the right to acquire this high quality gold project. We will be implementing an aggressive exploration campaign to quickly define and test drill targets.”

On the 100% Acquisition Date, the Alpha Mining will transfer 100% of the right, title and interest in and to the Property to the Sable and Alpha Mining will be entitled to an aggregate net smelter royalty (NSR) of 1% of the commercial production generated on the Property. Sable may purchase 100% of the NSR from the Alpha Mining by making an aggregate cash payment to the Vendor in the amount of US$1,500,000 at any time following the date which is 12 months after commercial production commences on any portion of the Property.