Mr. Alistair Waddell reports

INFLECTION RESOURCES AND ANGLOGOLD ASHANTI SIGN DEFINITIVE EXPLORATION AGREEMENT ACROSS PORTFOLIO OF COPPER-GOLD PROJECTS IN AUSTRALIA

Inflection Resources Ltd. has signed a definitive farm-in agreement with AngloGold Ashanti Australia Ltd. that outlines the terms under which AngloGold may earn into a number of Inflection's copper-gold projects in New South Wales, Australia.

Summary highlights:

• AngloGold shall finance up to $10-million (Australian) on exploration expenditures across the portfolio of projects as part of a phase I exploration program. Phase I will drill test a wide range of large intrusive-related copper-gold targets, including the Duck Creek project. Phase I includes a minimum expenditure commitment of $6-million (Australian) and a 10-per-cent management fee payable to Inflection.
• Phases II and III of the agreement are staged earn-ins where AngloGold may select up to five designated projects in which it may earn up to a 65-per-cent interest by financing $27-million (Australian) in exploration expenditures on each designated project for cumulative maximum expenditures of $135-million (Australian).
• AngloGold retains a further right under phase IV to earn an additional 10-per-cent interest in each designated project by:
  • Completing a prefeasibility study (PFS) solely financed by AngloGold based on a minimum of two million ounces of gold or gold-copper equivalent measured and indicated resources;
  • Granting to Inflection, subject to existing underlying royalties, a 2-per-cent or 1-per-cent net smelter return (NSR) royalty.
• The phase I exploration program is expected to comprise approximately 30,000 metres of drilling with an initial two drill rigs. The company intends to commence drilling in the coming days with an initial focus on the completion of deep drill holes on the Duck Creek project. Details of the exploration program will be provided soon.

Alistair Waddell, Inflection's president and chief executive officer, states: "The execution of this agreement with AngloGold sets the foundation for the upcoming exploration program and provides the necessary capital to aggressively drill test and potentially develop our large portfolio of copper-gold porphyry targets within the northern extension of the Macquarie Arc. We very much look forward to working with our partners AngloGold to explore the portfolio of targets over the coming years."

Philip Newton, AngloGold's senior vice-president, greenfields exploration, states: "We are excited to partner with Inflection for this opportunity in a proven Tier 1 terrane and to contribute towards this promising project in Australia. The complementary skills of AngloGold and Inflection can accelerate the discovery process in a sustainable manner that benefits all stakeholders."

Further details of the agreement

Phase I

AngloGold will sole-finance up to $10-million (Australian) on exploration expenditures across a wide range of different intrusive-related exploration targets within a 36-month period following the execution of the farm-in agreement. AngloGold has committed to finance minimum expenditures of $6-million (Australian). If phase I expenditures of $10-million (Australian) are not incurred within the required time frame, then the farm-in agreement shall terminate and no interest in any of the properties will be earned by AngloGold. Inflection will receive a 10-per-cent management fee for being the operator of phase I.

Upon completion of phase I exploration expenditures of $10-million (Australian), AngloGold retains the option to convert the expenditures into common shares of Inflection equal to a maximum of 9.9 per cent of the then issued outstanding common shares of the company, postshare issuance, at the time of completion of phase I. The deemed price of the shares shall be calculated using the 30-day volume-weighted average price and the number to be issued shall be capped at the Canadian-dollar equivalent of $10-million (Australian).

If the number of shares issued equals less than 9.9 per cent of Inflection's outstanding shares, then AngloGold shall retain the further option to purchase additional common shares from the treasury of Inflection at a 10-per-cent premium to the 30-day VWAP, up to a combined maximum ownership interest of 9.9 per cent of the then outstanding common shares.

Phase II

AngloGold may elect to earn an initial 51-per-cent interest in up to five designated projects individually by sole-financing expenditures of $7-million (Australian) on each project within 36 months. If AngloGold fails to complete the phase II earn-in expenditure for a given designated project, Inflection will retain 100-per-cent ownership with no interest earned by AngloGold.

Phase III

AngloGold may elect to earn an additional 14-per-cent interest in each designated project individually, for a total 65-per-cent interest, by sole-financing additional expenditures of $20-million (Australian) per designated project within 24 months following completion of phase II. If AngloGold initiates but does not complete phase III, then its ownership interest in the designated project will revert to 49 per cent, which Inflection retains the right to purchase at a mutually agreed price or for fair value if a price cannot be mutually agreed within a specified period.

Phase IV

AngloGold retains an additional right to earn a further 10-per-cent interest in each designated project, bringing its potential ownership interest to 75 per cent, by completing the following:

• Delivering to Inflection a prefeasibility study in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum definition standards on mineral resources and ore reserves based on a minimum two million ounces of gold or gold-copper equivalent measured and indicated resources within 36 months after AngloGold provides notice to move to phase IV;
• Granting to Inflection a 2-per-cent NSR on the applicable designated project; provided, however, that if the applicable designated project has any existing underlying royalties, Inflection will be granted a 1-per-cent NSR. AngloGold will have the right to buy back 0.5 per cent of any 2-per-cent NSR and 0.25 per cent of any 1-per-cent NSR in respect of all or a portion of the respective designated project for fair value at any time.

About Inflection's New South Wales projects:

The company is systematically exploring for large copper-gold and gold deposits in the northern interpreted extension of the Macquarie Arc, part of the Lachlan fold belt in New South Wales. The Macquarie Arc is Australia's premier porphyry copper-gold province, being host to Newcrest Mining's Cadia deposits, the CMOC Northparkes deposits and Evolution Mining's Cowal deposits plus numerous exploration prospects, including Boda, the discovery made by Alkane Resources.

The company is using cost-effective mud rotary drilling to cut through unmineralized postmineral sedimentary cover before transitioning to diamond core drilling once basement is reached. It is well documented that mineralized bodies elsewhere in the belt, in particular porphyry and intrusive-related systems, have large district-scale alteration and geochemical halos or footprints surrounding them.

Upon completion of the mud rotary part of the holes, the company typically completes a series of short diamond drill holes into bedrock rather than just one or two deep and more expensive diamond drill holes. Multiple data points gained from alteration and mineral geochemistry are then used to vector additional deeper drill holes. This is a proven exploration strategy in the covered segments of the Macquarie Arc having been directly responsible for the discovery of the Northparkes and Cowal deposits.

Qualified person

The scientific and technical information contained in this news release has been reviewed and approved by Carl Swensson (FAusIMM), a qualified person as defined in National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.

About Inflection Resources Ltd.

Inflection is a technically driven copper-gold- and gold-focused mineral exploration company listed on the Canadian Securities Exchange under the symbol AUCUand on the OTCQB under the symbol AUCUF with projects in Australia.

We seek Safe Harbor.