Mr. David Moore reports

SERENGETI ANNOUNCES SIGNING OF BINDING AGREEMENT WITH DAEWOO INTERNATIONAL CORP. FOR KWANIKA PROJECT

Serengeti Resources Inc. has signed a binding agreement with Daewoo Minerals Canada Corp. (DMC), a Canadian subsidiary of Daewoo International Corp., one of South Korea's leading trading corporations, whereby Daewoo may earn up to a 35-per-cent interest in Serengeti's Kwanika copper-gold project by providing financing of $8.2-million. The transaction has been approved by Daewoo's board of directors and by the relevant government authorities. Serengeti expects to be in receipt of proceeds within 30 days, at which point work on the project will be renewed.

The principal business terms of the arrangement are as follows.

• DMC will earn an initial 5-per-cent interest in the Kwanika project, which includes Kwanika, Kwanika East-Smoke, Germansen, Valleau and Rottacker properties, by financing a firm $1.2-million in expenditures in the first year, of which $800,000 will be for project expenditures and $400,000 as an operator's fee to Serengeti. Work on the project in 2016 will include a re-evaluation of the previously completed resource estimate and a scoping-level preliminary economic assessment study for the project, as well as testing of a number of high-quality exploration targets in the immediate deposit area in a 2,200-metre drill program scheduled for the 2016 field season.
• DMC is granted the right to earn an additional 30-per-cent interest in Kwanika by financing an additional $7-million in project expenditures over the subsequent two years for aggregate expenditures of $8.2-million over three years to earn an aggregate 35-per-cent project interest. Serengeti will remain as project operator so long as it maintains a majority interest and will be entitled to charge a 10-per-cent operator's fee on expenditures beyond the initial $1.2-million investment by DMC.

Other terms of the agreement include the following.

• Serengeti, in addition to maintaining its project interest, would be granted a 1-per-cent net smelter return royalty if its project interest is diluted below 50 per cent and an additional 0.5-per-cent NSR royalty if its interest is diluted below 33-1/3rd per cent, subject to partial buyback provisions to DMC.
• DMC will have certain concentrate off-take rights from production from the project, subject to Serengeti's ability to enter into separate streaming arrangements.
• DMC has the right to select and earn into one of Serengeti's other exploration properties if DMC proceeds with second stage of the Kwanika earn in by financing additional expenditures on such property, which property would be nominated at Serengeti's sole discretion.
• Serengeti will retain any eligible mining exploration tax credits generated by the first $8.2-million expenditure.

Serengeti president and chief executive officer David W. Moore stated, "We are extremely pleased to have concluded this important agreement with Daewoo; it represents a significant milestone for Serengeti, and we look forward to advancing the Kwanika project with our new strategic partner."

Harp Capital Corp. of Toronto and Exmin Consulting of Vancouver acted as advisers on behalf of Serengeti in this transaction.

We seek Safe Harbor.