LeadFX Announces Sale of Interests in Utah Mining Claims

AUSTRALIA - LeadFX Inc. signed definitive documentation to sell its indirect equity and debt interests in Chief Consolidated Mining Company. LeadFX owns, via its 100% owned subsidiary 9182357 Canada Ltd., an 83.5% interest in the common shares of Chief which were acquired through a merger with GeoZone Exploration Ltd. in November 2015. 9182357 Canada Ltd is the owner of secured and unsecured debts due from Chief.

Chief owns approximately 14,000 acres of land, of which approximately 13,000 acres are patented mining claims, in the Main Tintic and East Tintic Mining District, located across Utah County and Juab County, Utah. The district is about 60 miles south of Salt Lake City near the town of Eureka.

The Chief properties contain three potential primary mineral projects: (i) the prospective lead, silver, gold and zinc deposits and related infrastructure surrounding the former operating Burgin Mine; (ii) the prospective gold and silver deposit and related infrastructure surrounding the former operating Trixie Mine; and (iii) the prospective mining or quarrying of industrial minerals and aggregates.

The Company's interests are being sold to Ruby Hollow LLC and 321888 LLC – unrelated special purpose companies associated with Riverfield Capital – a mining, investment and capital markets business operated by Geoff Stanley. Stanley has over 30 years mining industry experience and is a past Managing Director of BMO Capital Markets and past President of New York Metals Analysts Group. He has assembled a team of mining, corporate and legal practitioners to advance the Chief properties. Tharp & Associates, LLC, of Arvada, Colorado, served as the introducer of the Chief transaction and adviser to Riverfield Capital.

Proceeds from the sale of LeadFX's interests in Chief total US$4.5 million of which US$3.0 million is due at closing and a further US$1.5 million, subject to adjustments, is due 12 months after closing. A sixty day due diligence period is available to the buyers and should the due diligence conditions to closing be satisfied or waived by the buyer.