Mr. Glen Macdonald reports

AUQ ACQUIRES B-T CLAIMS

AUQ Gold Mining Inc. has closed its previously announced agreement with arm's-length vendors to acquire 100 per cent of the Bellechasse Timmins (B-T) project. It consists of six claims totalling 351.94 hectares (3.52 square kilometres) located approximately 100 kilometres or a 1.5-hour drive southeast of Quebec City in the Beauce-Bellechasse region of the province of Quebec. The project has very good access, logistics manpower availability and Quebec has been regularly ranked as a top exploration and mining jurisdiction by the Fraser Institute.

Project summary

The B-T deposit contains at least four mineralized zones, namely Timmins 1 (T1), Timmins 2 (T2), Ascot and 88.

The B-T geological setting is characterized by folded mafic intrusive, volcaniclastics and sediments, having a general southwest-northeast orientation. Considering the structural context, the mineralized bodies are a folded mafic intrusive with an axial plane running northeast, apparently dipping steeply to the southeast and plunging to the southwest.

T1, the largest zone to date, is located within a heavily transposed and compacted anticlinal fold nose, along the structural plane. The T2 zone is located easterly along the flank of the fold. The 88 zone is located within a large transposed fold southeast of the T1. The Ascot zone is along the northern flank of the fold.

The 2012 SGS National Instrument 43-101 compliant mineral resource (base case) for the T1 and T2 zones using a lower cut-off grade of 0.6 gram per tonne gold and gold capping at 30 grams per tonne gold is classified as:

• Indicated: 2,905,000 tonnes at 1.83 g/t Au totalling 171,000 ounces;
• Inferred: 2,173,000 tonnes at 1.36 g/t Au totalling 95,000 ounces.

The same resource with the same lower cut-off grade of 0.6 g/t Au and no capping limit is classified as:

• Indicated: 2,905,000 tonnes at 3.36 g/t Au totalling 313,900 ounces;
• Inferred: 2,173,000 tonnes at 1.46 g/t Au totalling 102,000 ounces.

Terms of the transaction

To acquire a 100-per-cent interest in the property, AUQ will pay the following.

Vendor No. 2 has the option to request that any of these cash payments be satisfied by shares provided that he advises the company three business days prior to the proposed issuance date of the shares by the company.

The vendors will retain a 1-per-cent NSR (net smelter return) gold royalty on any and all commercial production of gold. AUQ has the right to purchase the royalty at any time for $1-million. The value of the shares to be issued will be based on the volume-weighted average trading price for the 20 trading days preceding the issuance date with a minimum price of 20.6 cents per share (VWAP20). In the event that the VWAP20 is less than 20.6 cents, the vendor will be issued an additional 0.5-per-cent NSR royalty, which, aggregated with the existing agreed 1-per-cent NSR royalty, will total 1.5 per cent that can be acquired for $1.5-million. In the event that the vendors obtain a bona fide offer for the royalty, AUQ retains a right of first refusal to match such offer within 60 days of receipt of notice of such an offer.

The initial payment comprised 248,718 common shares has been issued to each of the two vendors.

A finder's fee comprising 36,363 common shares and $26,975 is payable to an arm's-length finder. All securities detailed in this press release will be issued with a hold period legended thereon expiring four months plus one day, in accordance with applicable securities laws.

Jacques Marchand, PEng (geology), is the qualified person under NI 43-101 and has reviewed and approved the technical geological information provided in this news release.

We seek Safe Harbor.

We seek Safe Harbor.