Mr. John Budreski reports

MORIEN CLOSES CASH AND ROYALTY TRANSACTION FOR DONKIN INTEREST

Morien Resources Corp. has closed the transaction with Kameron Collieries ULC, an affiliate of the Cline Group LLC, for the exchange of Morien's 25-per-cent working interest in the Donkin coal project in Cape Breton, N.S., for cash and a production royalty.

Approval of the transaction was given at a special meeting of the company's shareholders held on Feb. 10, 2015, where shareholders voted 99.99 per cent in favour of the transaction. The consideration being paid for the interest is $5.5-million in cash and a gross production royalty of 2 per cent to 4 per cent. On closing, Morien received an initial cash payment from Kameron of $2-million. The remaining cash consideration of $3.5-million is to be paid in stages, with $2-million on the earlier of either first production from the project and the second anniversary of closing, and a further $1.5-million on the earlier of either first export sales from the project and the third anniversary of closing. In addition, Morien closed a private placement in December, 2014, with Atlantic Royalty LLC, a subsidiary of the Cline Group LLC, for 3.45 million common shares in Morien at 30 cents per share, a 58-per-cent premium to market, for gross proceeds of $1,035,000.

Kameron also agreed to pay Morien a gross production royalty of 2 per cent on the first 500,000 tonnes of coal sales per calendar quarter and 4 per cent on any coal sales from quarterly tonnage above 500,000 tonnes. Based on the current permitted production rate for the project of 2.75 million sales tonnes per year, and on current and forecasted coal prices, Morien management and its board of directors estimate that royalty payments could range from $4.6-million to $6.7-million annually. These estimates are based on judgments made by the board and Morien management, and could be achieved only when the project reaches maximum permitted production levels. Actual results and royalties received, if any, may vary.

The Donkin royalty further diversifies Morien's asset portfolio, which includes two existing royalty arrangements: a 1.5-per-cent net smelter return royalty from the Yellow Giant gold mine in British Columbia, owned by Banks Island Gold Ltd., which currently provides royalty payments to Morien in the order of $200,000 per year; and a production royalty from the Black Point aggregate project in Nova Scotia from Vulcan Materials Co., which is anticipated to commence within the 2018-to-2020 period, and estimated to be in the range of $250,000 to $750,000 per year in royalty payments to Morien over that project's expected 50-year life.

The cash payment received on closing of the Donkin transaction will result in Morien having a total cash position of approximately $4.5-million. In addition, future milestone payments from Kameron and Vulcan, combined with existing royalty payments from Banks Island Gold, are projected to be approximately $5-million over the next 36 months. These amounts are prior to receipt of any potential royalty stream from the Black Point aggregate project (Vulcan) or the Donkin coal project (Kameron). These funds will further strengthen the company's financial position and allow Morien to pursue additional growth opportunities at an opportune time in a period of low valuations in the resource sector.

Donkin coal project update

Kameron commenced dewatering of the access tunnels at Donkin during the first quarter of 2015 and expects to have the tunnels fully dewatered by the third quarter of 2015. Kameron has also recently begun the process of clearing the right-of-way of a 69-kilovolt power line at the project and, in regard to coal marketing, has had positive discussions with prospective overseas buyers, and with Nova Scotia's local power utility, Nova Scotia Power Inc., to supply coal to local power-generating plants.

Normal course issuer bid

Morien announced on Jan. 20, 2015, the approval of a normal course issuer bid, permitting Morien to acquire up to 4,995,300 common shares, representing approximately 10 per cent of the public float of Morien. In the opinion of the board of directors of Morien, its common shares have been trading at prices that do not reflect the underlying value its royalty portfolio and strong financial position. Accordingly, Morien believes that purchasing and returning its common shares to treasury at current pricing represents an opportunity to enhance value for its continuing shareholders. Morien's cash position allows for the implementation of the bid without adversely affecting Morien's other opportunities.

We seek Safe Harbor.