Mr. William Sheriff reports

GOLDEN PREDATOR AGREES TO ACQUIRE 100% INTEREST IN BREWERY CREEK

Golden Predator Corp. has entered into a purchase agreement with Alexco Resource Corp. pursuant to which it will acquire a 100-per-cent interest in the Brewery Creek project, subject to a 2-per-cent net smelter returns royalty in favour of Alexco. On closing, the purchase agreement will replace the existing Brewery Creek option agreement under which Golden Predator has the right to earn up to a 75-per-cent interest in the project, with Alexco having the right to buy back a 10-per-cent interest.

"One-hundred-per-cent ownership in the Brewery Creek project is a major milestone on the road to becoming a gold producer in the Yukon," said William M. Sheriff, chairman and chief executive officer. "Under our multiphase development plan we will turn our immediate attention towards the completion of engineering studies. These studies will be aimed both at resuming gold production from the existing leach pad as well as completion of the original mine plan. We plan to continue to expand and advance our recent discoveries through exploration, permitting and engineering, all directed towards establishing a much larger new mine in the coming years."

Brewery Creek project update

The company completed 344 core and RC holes for 55,453 metres at Brewery Creek in 2011. The 2011 drilling was concentrated on delineating the three 2011 discoveries at the Bohemian-Schooner, Sleeman and Classic zones, with significant additional drilling on the North Slope zone.

Current year drilling is anticipated to resume early in the first quarter and will concentrate on further expansion of the Sleeman, Classic and Bohemian Schooner zones as well as exploration of a number of quality targets resulting from 2011 geochemical and geophysical surveys of the project area.

The Brewery Creek project is a past-producing heap leach gold mining operation with a total of 278,484 ounces Au produced from seven near-surface oxide deposits along the property's Reserve trend from 1996 through 2002, when the mine (operated by Viceroy Resource Corp.) shut down due to low gold prices. The 200-square-kilometre property is located 55 km due east of Dawson City, accessible by paved and gravel roads from the junction of the North Klondike and Dempster Highways. In May, 2011, the company staked an additional 204 quartz claims east of the historic Brewery Creek property, increasing the project to a total of 997 quartz claims.

The project is in receipt of all necessary permits required to conduct additional exploration. The Brewery Creek project is authorized under a Type A water licence with an expiry date of Dec. 31, 2021, subject to the restrictions and conditions contained in the Yukon Water Act and regulations. The project also has a mining licence with an expiry date of Dec. 31, 2021. In addition, a socio-economic accord with Tr'ondek Hwech'in First Nation with respect to the Brewery Creek project is in place.

As a result of the acquisition, the company has elected to include all of the 2011 drilling in the NI 43-101-compliant resource estimate currently under way, and now anticipates receiving the updated report in April, 2012. The initial report, scheduled for release in January, 2012, did not include 83 holes drilled in late 2011 for which the company now has preliminary results, and which will be released on completion of quality assurance/quality control review.

Transaction terms

To acquire a 100-per-cent interest in the Brewery Creek project the company will pay Alexco $4-million less the amount of the current reclamation bond posted by Alexco with the Yukon government (estimated at $795,000), issue 7.5 million common shares of the company and 3.75 million share purchase warrants. Each warrant will entitle Alexco to purchase one additional share at a price of $1.15 for a period of two years from closing. Should Alexco propose to sell more than 250,000 shares in any 30-day period, the company has the right to acquire such shares or to propose a qualified buyer for such shares. Closing of the purchase agreement is subject to several conditions precedent, and is set to occur on or before April 30, 2012. Alexco will retain a 2-per-cent net smelter return royalty on the next 600,000 ounces of gold produced from the claims acquired from Alexco, following which the royalty will increase to 2.75 per cent. Golden Predator has the right to repurchase 0.65 per cent of the increased royalty by paying Alexco $2-million.

Alexco has agreed to co-operate to effect the transfer of the current quartz mining and water licences to Golden Predator.

We seek Safe Harbor.