Mr. Roger Walsh reports

RAPIER GOLD INC. ANNOUNCES AN EXTENSION TO THE RIO TINTO AGREEMENT

Rio Tinto has granted Rapier Gold Inc. an extension until March 31, 2015, to complete the remaining exploration expenditure requirement of approximately $210,000 out of a total of $1.5-million, on the Pen Gold North property, which forms part of the Pen Gold project.

Pen Gold project summary

The company's activities are exclusively focused on exploring for gold on the Pen Gold project, comprising 16,448 hectares (approximately 160 square kilometres) located 75 km southwest of Timmins, Ont. Located in close proximity to Pen Gold project are three of the most interesting new gold discoveries on the Ontario side of the Abitibi belt:

• Additional discoveries by Lakeshore Gold at Thunder Creek, 50 km east;
• Probe Mine's Borden Lake deposit 70 km west;
• Iamgold's Cote Lake deposit 70 km south, which was acquired two years ago.

The Pen Gold project sits on the western extension of the Porcupine-Destor deformation fault zone, one of the most productive gold structures in the world. This fault zone extends east to Chibougamau in Quebec and hosts many of the most famous gold mines in Canada. The company has completed a 13-hole drill program of 4,350 metres, focused on four key areas of the project: Westgate area, Porphyry Hill area, Midway area and Talc mine area. Details were outlined in the company's press releases dated June 24, 2013, and July 26, 2013. In the summer of 2013, the company completed mapping and prospecting over approximately 4,100 hectares, or approximately 25 per cent of the property, which identified two new trends: the Westgate trend extending approximately 3.5 km east-west from the two holes drilled at Westgate, the Porphyry Hill trend extending two km east of the one hole drilled at Porphyry Hill and a new area with historical work: the Nib Yellowknife area located two km south of the Talc mine area.

Results from this work were outlined in Rapier's press releases dated Sept. 5, 2013, and Oct. 7, 2013.

Current market conditions and financial constraints have resulted in the company evaluating various options to advance the next stage of work, including joint ventures and/or alliances with other mining companies.

Certain work can only be carried out in summer and fall, and the optimal drilling conditions occur in winter. The next five stages of work to be conducted on the project over a 12-month period and that can occur in a different order include:

• Airborne magnetometer survey on Pen Gold North and integrating this with data from Pen Gold South: $65,000;
• Mapping and prospecting from August to October: $650,000, this will cover most of Pen Gold South;
• Fall overburden stripping for drill target generation: $150,000;
• Winter drilling: $250,000;
• Discretionary drilling: $250,000.

The mapping and winter drilling programs would only occur if a suitable joint venture partner is identified.

We seek Safe Harbor.