Mr. Keith Anderson reports

FAR RESOURCES SIGNS OPTION AGREEMENT WITH REDLINE MINERALS

Far Resources Ltd. has entered into an option agreement, effective as of Oct. 17, 2014, with Redline Minerals Inc., Redline Mining Corp. and Southwest Land & Exploration Inc., to acquire up to an 80-per-cent interest in and to 105 unpatented and two patented mineral claims located in Sierra county, New Mexico, United States of America, known as the LG/Ivan and Little Granite unpatented mineral claims and the Ivanhoe/Emporia patented mineral claims.

The option agreement supersedes and replaces the binding letter of intent between the company and Redline announced on Nov. 5, 2013, and sets out the terms under which Far can acquire an initial 50-per-cent interest in the property and further sets out how the company can earn up to an additional 30-per-cent interest in the property from the optionors.

To date, the company has completed an initial site visit to the property as announced on March 17, 2014, and made cash payments to Redline totalling $66,250. To exercise the initial option, the company must: (1) make further cash payments of $13,750 on Nov. 15, 2014, and $15,000 on Jan. 15, 2015 (or 300,000 common shares at a deemed price of five cents per share in lieu thereof), and (2) make additional cash payments totalling $240,000, payable at $80,000 per year, which the optionors must use to keep the properties in good standing, issue a total of 2.5 million common shares of the company to the optionors with the first tranche of 500,000 common shares due on closing and the remaining shares due in four equal instalments of 500,000 shares each on the anniversary dates of the option agreement, and incur exploration expenses of $1-million over a period of four years with $200,000 to be spent the first and second years, respectively, and $300,000 in each subsequent year.

Upon exercise of the initial option, the company will have the further option, exercisable for a period of 90 days, to acquire up to an additional 30-per-cent interest in the property, in increments of 10 per cent per annum, by paying an additional $80,000 per year to cover continuing assessment/recording fees, taxes and underlying property payments (up to $240,000 in total), issuing an additional 500,000 common shares per year to the optionors (up to 1.5 million shares in total), and incurring a further $500,000 in exploration expenditures per year (up to $1.5-million in total) on the property over a period of three years.

All shares issued under the option agreement will be subject to a four-month-and-one-day statutory hold period from the date of issuance and be subject to a five-month voluntary pooling restriction, which will allow for the shares to be released from the pool at the rate of 100,000 shares per month for five months after the expiry of the hold period. The 300,000 shares which may be issued in lieu of the $15,000 cash payment described herein will not be subject to the pooling restriction, but will be subject the hold period.

During the option period, the parties will jointly undertake all exploration programs on the property through a technical committee to be composed of two representatives from the company and one representative from the optionors. Upon exercise of the initial option or, if applicable, the initial option and all or part of the additional option, the company and the optionors will enter into a joint venture agreement for the further exploration and development of the property with the company as the initial operator.

The property is subject to certain permitted encumbrances including a 2-per-cent net smelter return royalty on the Ivanhoe/Emporia patented claims.

We seek Safe Harbor.