21:10:56 EST Sun 08 Feb 2026
Enter Symbol
or Name
USA
CA



Red Hut Metals Inc (2)
Symbol ROB
Shares Issued 8,372,851
Close 2017-02-23 C$ 0.14
Market Cap C$ 1,172,199
Recent Sedar+ Documents

ORIGINAL: Red Hut signs LOI to acquire California Au claims

2017-02-23 14:01 ET - News Release

 Tse <nikkit@stockwatch.com>
Subject: Red Hut Metals Signs LOI for Rights to Gold-Bearing Claims inCalifornia

PLAIN TEXT:

February 23, 2017 13:39 ET


  Red Hut Metals Signs LOI for Rights to Gold-Bearing Claims in California

**

*VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 23, 2017) -*Red Hut 
Metals Inc. (the "Company" or "Red Hut") (TSX VENTURE:ROB) announces 
that it has signed a Letter of Intent ("LOI") with each of Ray Merry and 
Ron Coombes of Maple Ridge, B.C. and 0999940 B.C. Ltd, (a private B.C. 
company owned by Merry) (collectively the "Assignors") whereby Red Hut 
will acquire by way of assignment all of the contractual interests held 
by the Assignors in various patented and located mineral claims (the 
"Property") with a history of gold mineralization in Western California, 
USA (the "Transaction").

*About the Property*

The Property includes six parcels which have been fully patented and are 
owned in fee simple, and thirteen 20-acre mining claims on Bureau of 
Land Management and US Forest Service property (260 acres), which 
include several historic mines and a mill site. As additional ground is 
being added to the Property, details of the Property will be deferred 
until the land package is fully assembled.

*The Proposed Transaction*

The Assignors have negotiated the general terms and provisions whereby 
they can earn a 50% joint venture interest in the Property, or 
alternatively buy a 100% interest in the Property. To earn a 50% 
interest in the Property requires the payment of US$175,000 and 
incurring C$2,000,000 of expenditures on the Property over the course of 
three years, as follows:

  * payment of US$25,000 on or before March 28, 2017;
  * payment of US$25,000 and incurring C$250,000 of expenditures by
    March 28, 2018;
  * payment of US$100,000 and incurring an additional C$750,000 of
    expenditures by March 28, 2019; and
  * incurring an additional C$1,000,000 of expenditures by March 28, 2020.

Having earned a 50% interest, a joint venture would be formed with the 
Property owner. Alternatively, a 100% interest in the Property can be 
acquired for US$5,000,000, at any time, of which one-half can be paid in 
shares.

As consideration for the assignment, Red Hut will assume all obligations 
of the Assignors to the Property owner, and has agreed to pay the 
following to the Assignors:

 1. Following regulatory approval, Red Hut will make a cash payment
    US$25,000 and issue 1,500,000 Red Hut shares to 0999940 BC Ltd.;

 2. After completing the recommended first year work program of at least
    C$250,000, Red Hut will issue an additional 1,500,000 Red Hut shares
    to 0999940 BC Ltd.;

 3. After completing the recommended second year work program of at
    least $750,000, Red Hut will issue an additional 1,500,000 Red Hut
    shares to 0999940 BC Ltd.;

 4. In the event that Red Hut elects to acquire the Property for US$5
    million, Red Hut will issue an additional 1,500,000 Red Hut shares
    to 0999940 BC Ltd.

In either event, the Property owner will retain a 2.5% net smelter 
returns royalty, of which 1.5% NSR can be acquired for US$1,000,000 if 
the option to acquire a 100% interest in the Property is exercised.

The Transaction was negotiated at arm's length. The Transaction will 
constitute a reviewable transaction under the policies of the TSX 
Venture Exchange (the "Exchange") and as such, it will require approval 
of the Exchange. As no change of control will result, Red Hut will not 
be required to seek the approval of its shareholders.

*Private Placement*

In conjunction with the Transaction, Red Hut will undertake, subject to 
the acceptance of the Exchange, a private placement of at least 
$1,200,000 in gross proceeds (the "Financing") through the issuance of 
at least 12 million units (the "Units") at a price of $0.10 per Unit. 
Each Unit will be comprised of one common share and one-quarter of one 
common share purchase warrant ("Warrant"), with each whole Warrant 
entitling the holder to purchase one common share of Red Hut at a price 
of $0.25 per share for a period of one year. Red Hut expects to pay 
finders' fees of not more than 7% (payable in Red Hut shares), and 7% 
finder's warrants (with terms similar to the Warrants).

The funds will be used to meet the cash requirements of the Transaction 
and to undertake the recommended work program for the Property.

*Certain Conditions to Transaction*

The completion of the Transaction will be subject to the satisfaction of 
certain conditions, including:

  * Red Hut completing the Financing; and
  * Receipt of Exchange approval of the Transaction and the Financing.

*Other Matters*

Subject to regulatory approval, a finder's fee of 5% of the value of the 
Transaction is payable to Mackie Research Capital Corporation of 
Vancouver, B.C. in the form of Red Hut Shares.

This news release does not constitute an offer of sale of any of the 
foregoing securities in the United States. None of the foregoing 
securities have been and will not be registered under the U.S. 
Securities Act of 1933, as amended (the "1933 Act") or any applicable 
state securities laws and may not be offered or sold in the United 
States or to, or for the account or benefit of, U.S. persons (as defined 
in Regulation S under the 1933 Act) or persons in the United States 
absent registration or an applicable exemption from such registration 
requirements. This news release does not constitute an offer to sell or 
the solicitation of an offer to buy, nor will there be any sale of the 
foregoing securities in any jurisdiction in which such offer, 
solicitation or sale would be unlawful.

*ON BEHALF OF THE BOARD*

Robert Eadie, President, Chief Executive Officer and Director

/Neither the TSX Venture Exchange nor its Regulation Services Provider 
(as that term is defined in the policies of the TSX Venture Exchange) 
accepts responsibility for the adequacy or accuracy of this release./

*CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION*: This news 
release includes certain "forward-looking statements" under applicable 
Canadian securities legislation. Forward-looking statements include, but 
are not limited to, statements with respect to: the terms and conditions 
of the proposed Transaction; the terms and conditions of the proposed 
Financing; future work to be carried on the Property; use of funds; and 
the business and operations of Red Hut after the proposed transaction. 
Forward-looking statements are necessarily based upon a number of 
estimates and assumptions that, while considered reasonable, are subject 
to known and unknown risks, uncertainties, and other factors which may 
cause the actual results and future events to differ materially from 
those expressed or implied by such forward-looking statements. There is 
no assurance any of the forward-looking statements will be completed as 
described herein, or at all. Such factors include, but are not limited 
to: general business, economic, competitive, political and social 
uncertainties; operating and technical difficulties in connection with 
mineral exploration and development activities, lack of investor 
interest in the Financing; requirements for additional capital; future 
prices of gold and precious metals; changes in general economic 
conditions; accidents, delays or the failure to receive board, 
shareholder or regulatory approvals, including the required permits; 
results of current exploration and testing; changes in laws, regulations 
and policies affecting mining operations; and title disputes. There can 
be no assurance that such statements will prove to be accurate, as 
actual results and future events could differ materially from those 
anticipated in such statements. Accordingly, readers should not place 
undue reliance on forward-looking statements. Red Hut disclaims any 
intention or obligation to update or revise any forward-looking 
statements, whether as a result of new information, future events or 
otherwise.


    CONTACT INFORMATION

  *

    Red Hut Metals Inc.
    Robert Eadie
    1-604-602-4935
    1-604-602-4936 (FAX)
    info@redhutmetals.com <mailto:info@redhutmetals.com>
    www.redhutmetals.com <http://www.redhutmetals.com/>






HTML CONTENT:


<html>
  <head>

    <meta http-equiv="content-type" content="text/html; charset=utf-8">
  </head>
  <body bgcolor="#FFFFFF" text="#000000">
    <p id="news-date" style="margin: 0px 0px 1.5em; padding: 5px 0px;
      border: 0px; font-size: 14px !important; font-weight: inherit;
      font-style: inherit; font-family: inherit; vertical-align:
      baseline; outline: 0px; line-height: 1.3;">February 23, 2017 13:39
      ET</p>
    <h1 style="margin: 0px; padding: 0px; border: 0px; font-size: 22px;
      font-weight: bold; font-style: inherit; font-family: inherit;
      vertical-align: baseline; outline: 0px; line-height: 1.3;">Red Hut
      Metals Signs LOI for Rights to Gold-Bearing Claims in California</h1>
    <p style="margin: 0px; padding: 5px 0px; border: 0px; font-size:
      14px !important; font-weight: inherit; font-style: inherit;
      font-family: inherit; vertical-align: baseline; outline: 0px;
      line-height: 1.3;"><strong style="margin: 0px; padding: 0px;
        border: 0px; font-size: 14px; font-weight: bold !important;
        font-style: inherit; font-family: inherit; vertical-align:
        baseline; outline: 0px;"></strong></p>
    <div class="mw_release" style="margin: 0px; padding: 0px; border:
      0px; font-size: 16px; font-weight: inherit; font-style: inherit;
      font-family: inherit; vertical-align: baseline; outline: 0px;">
      <p style="margin: 0px; padding: 5px 0px; border: 0px; font-size:
        14px !important; font-weight: inherit; font-style: inherit;
        font-family: inherit; vertical-align: baseline; outline: 0px;
        line-height: 1.3;"><strong style="margin: 0px; padding: 0px;
          border: 0px; font-size: 14px; font-weight: bold !important;
          font-style: inherit; font-family: inherit; vertical-align:
          baseline; outline: 0px;">VANCOUVER, BRITISH
          COLUMBIA--(Marketwired - Feb. 23, 2017) -</strong><span
          class="Apple-converted-space"> </span>Red Hut Metals Inc. (the
        "Company" or "Red Hut") (TSX VENTURE:ROB) announces that it has
        signed a Letter of Intent ("LOI") with each of Ray Merry and Ron
        Coombes of Maple Ridge, B.C. and 0999940 B.C. Ltd, (a private
        B.C. company owned by Merry) (collectively the "Assignors")
        whereby Red Hut will acquire by way of assignment all of the
        contractual interests held by the Assignors in various patented
        and located mineral claims (the "Property") with a history of
        gold mineralization in Western California, USA (the
        "Transaction").</p>
      <p style="margin: 0px; padding: 5px 0px; border: 0px; font-size:
        14px !important; font-weight: inherit; font-style: inherit;
        font-family: inherit; vertical-align: baseline; outline: 0px;
        line-height: 1.3;"><strong style="margin: 0px; padding: 0px;
          border: 0px; font-size: 14px; font-weight: bold !important;
          font-style: inherit; font-family: inherit; vertical-align:
          baseline; outline: 0px;"><span style="margin: 0px; padding:
            0px; border: 0px; font-size: 14px; font-weight: inherit;
            font-style: inherit; font-family: inherit; vertical-align:
            baseline; outline: 0px; text-decoration: underline;">About
            the Property</span></strong></p>
      <p style="margin: 0px; padding: 5px 0px; border: 0px; font-size:
        14px !important; font-weight: inherit; font-style: inherit;
        font-family: inherit; vertical-align: baseline; outline: 0px;
        line-height: 1.3;">The Property includes six parcels which have
        been fully patented and are owned in fee simple, and thirteen
        20-acre mining claims on Bureau of Land Management and US Forest
        Service property (260 acres), which include several historic
        mines and a mill site. As additional ground is being added to
        the Property, details of the Property will be deferred until the
        land package is fully assembled.</p>
      <p style="margin: 0px; padding: 5px 0px; border: 0px; font-size:
        14px !important; font-weight: inherit; font-style: inherit;
        font-family: inherit; vertical-align: baseline; outline: 0px;
        line-height: 1.3;"><strong style="margin: 0px; padding: 0px;
          border: 0px; font-size: 14px; font-weight: bold !important;
          font-style: inherit; font-family: inherit; vertical-align:
          baseline; outline: 0px;"><span style="margin: 0px; padding:
            0px; border: 0px; font-size: 14px; font-weight: inherit;
            font-style: inherit; font-family: inherit; vertical-align:
            baseline; outline: 0px; text-decoration: underline;">The
            Proposed Transaction</span></strong></p>
      <p style="margin: 0px; padding: 5px 0px; border: 0px; font-size:
        14px !important; font-weight: inherit; font-style: inherit;
        font-family: inherit; vertical-align: baseline; outline: 0px;
        line-height: 1.3;">The Assignors have negotiated the general
        terms and provisions whereby they can earn a 50% joint venture
        interest in the Property, or alternatively buy a 100% interest
        in the Property. To earn a 50% interest in the Property requires
        the payment of US$175,000 and incurring C$2,000,000 of
        expenditures on the Property over the course of three years, as
        follows:</p>
      <ul style="margin: 0px; padding: 0px; border: 0px; font-size:
        16px; font-weight: inherit; font-style: inherit; font-family:
        inherit; vertical-align: baseline; list-style: disc; outline:
        0px;">
        <li style="margin: 0px 0px 0px 20px; padding: 0px; border: 0px;
          font-size: 14px !important; font-weight: inherit; font-style:
          inherit; font-family: inherit; vertical-align: baseline;
          outline: 0px;">payment of US$25,000 on or before March 28,
          2017;</li>
        <li style="margin: 0px 0px 0px 20px; padding: 0px; border: 0px;
          font-size: 14px !important; font-weight: inherit; font-style:
          inherit; font-family: inherit; vertical-align: baseline;
          outline: 0px;">payment of US$25,000 and incurring C$250,000 of
          expenditures by March 28, 2018;</li>
        <li style="margin: 0px 0px 0px 20px; padding: 0px; border: 0px;
          font-size: 14px !important; font-weight: inherit; font-style:
          inherit; font-family: inherit; vertical-align: baseline;
          outline: 0px;">payment of US$100,000 and incurring an
          additional C$750,000 of expenditures by March 28, 2019; and</li>
        <li style="margin: 0px 0px 0px 20px; padding: 0px; border: 0px;
          font-size: 14px !important; font-weight: inherit; font-style:
          inherit; font-family: inherit; vertical-align: baseline;
          outline: 0px;">incurring an additional C$1,000,000 of
          expenditures by March 28, 2020.</li>
      </ul>
      <p style="margin: 0px; padding: 5px 0px; border: 0px; font-size:
        14px !important; font-weight: inherit; font-style: inherit;
        font-family: inherit; vertical-align: baseline; outline: 0px;
        line-height: 1.3;">Having earned a 50% interest, a joint venture
        would be formed with the Property owner. Alternatively, a 100%
        interest in the Property can be acquired for US$5,000,000, at
        any time, of which one-half can be paid in shares.</p>
      <p style="margin: 0px; padding: 5px 0px; border: 0px; font-size:
        14px !important; font-weight: inherit; font-style: inherit;
        font-family: inherit; vertical-align: baseline; outline: 0px;
        line-height: 1.3;">As consideration for the assignment, Red Hut
        will assume all obligations of the Assignors to the Property
        owner, and has agreed to pay the following to the Assignors:</p>
      <ol style="margin: 0px; padding: 0px; border: 0px; font-size:
        16px; font-weight: inherit; font-style: inherit; font-family:
        inherit; vertical-align: baseline; list-style: lower-alpha;
        outline: 0px;">
        <li style="margin: 0px 0px 0px 20px; padding: 0px; border: 0px;
          font-size: 16px; font-weight: inherit; font-style: inherit;
          font-family: inherit; vertical-align: baseline; outline: 0px;">Following
          regulatory approval, Red Hut will make a cash payment
          US$25,000 and issue 1,500,000 Red Hut shares to 0999940 BC
          Ltd.;</li>
      </ol>
      <ol start="2" style="margin: 0px; padding: 0px; border: 0px;
        font-size: 16px; font-weight: inherit; font-style: inherit;
        font-family: inherit; vertical-align: baseline; list-style:
        lower-alpha; outline: 0px;">
        <li style="margin: 0px 0px 0px 20px; padding: 0px; border: 0px;
          font-size: 16px; font-weight: inherit; font-style: inherit;
          font-family: inherit; vertical-align: baseline; outline: 0px;">After
          completing the recommended first year work program of at least
          C$250,000, Red Hut will issue an additional 1,500,000 Red Hut
          shares to 0999940 BC Ltd.;</li>
      </ol>
      <ol start="3" style="margin: 0px; padding: 0px; border: 0px;
        font-size: 16px; font-weight: inherit; font-style: inherit;
        font-family: inherit; vertical-align: baseline; list-style:
        lower-alpha; outline: 0px;">
        <li style="margin: 0px 0px 0px 20px; padding: 0px; border: 0px;
          font-size: 16px; font-weight: inherit; font-style: inherit;
          font-family: inherit; vertical-align: baseline; outline: 0px;">After
          completing the recommended second year work program of at
          least $750,000, Red Hut will issue an additional 1,500,000 Red
          Hut shares to 0999940 BC Ltd.;</li>
      </ol>
      <ol start="4" style="margin: 0px; padding: 0px; border: 0px;
        font-size: 16px; font-weight: inherit; font-style: inherit;
        font-family: inherit; vertical-align: baseline; list-style:
        lower-alpha; outline: 0px;">
        <li style="margin: 0px 0px 0px 20px; padding: 0px; border: 0px;
          font-size: 16px; font-weight: inherit; font-style: inherit;
          font-family: inherit; vertical-align: baseline; outline: 0px;">In
          the event that Red Hut elects to acquire the Property for US$5
          million, Red Hut will issue an additional 1,500,000 Red Hut
          shares to 0999940 BC Ltd.</li>
      </ol>
      <p style="margin: 0px; padding: 5px 0px; border: 0px; font-size:
        14px !important; font-weight: inherit; font-style: inherit;
        font-family: inherit; vertical-align: baseline; outline: 0px;
        line-height: 1.3;">In either event, the Property owner will
        retain a 2.5% net smelter returns royalty, of which 1.5% NSR can
        be acquired for US$1,000,000 if the option to acquire a 100%
        interest in the Property is exercised.</p>
      <p style="margin: 0px; padding: 5px 0px; border: 0px; font-size:
        14px !important; font-weight: inherit; font-style: inherit;
        font-family: inherit; vertical-align: baseline; outline: 0px;
        line-height: 1.3;">The Transaction was negotiated at arm's
        length. The Transaction will constitute a reviewable transaction
        under the policies of the TSX Venture Exchange (the "Exchange")
        and as such, it will require approval of the Exchange. As no
        change of control will result, Red Hut will not be required to
        seek the approval of its shareholders.</p>
      <p style="margin: 0px; padding: 5px 0px; border: 0px; font-size:
        14px !important; font-weight: inherit; font-style: inherit;
        font-family: inherit; vertical-align: baseline; outline: 0px;
        line-height: 1.3;"><strong style="margin: 0px; padding: 0px;
          border: 0px; font-size: 14px; font-weight: bold !important;
          font-style: inherit; font-family: inherit; vertical-align:
          baseline; outline: 0px;"><span style="margin: 0px; padding:
            0px; border: 0px; font-size: 14px; font-weight: inherit;
            font-style: inherit; font-family: inherit; vertical-align:
            baseline; outline: 0px; text-decoration: underline;">Private
            Placement</span></strong></p>
      <p style="margin: 0px; padding: 5px 0px; border: 0px; font-size:
        14px !important; font-weight: inherit; font-style: inherit;
        font-family: inherit; vertical-align: baseline; outline: 0px;
        line-height: 1.3;">In conjunction with the Transaction, Red Hut
        will undertake, subject to the acceptance of the Exchange, a
        private placement of at least $1,200,000 in gross proceeds (the
        "Financing") through the issuance of at least 12 million units
        (the "Units") at a price of $0.10 per Unit. Each Unit will be
        comprised of one common share and one-quarter of one common
        share purchase warrant ("Warrant"), with each whole Warrant
        entitling the holder to purchase one common share of Red Hut at
        a price of $0.25 per share for a period of one year. Red Hut
        expects to pay finders' fees of not more than 7% (payable in Red
        Hut shares), and 7% finder's warrants (with terms similar to the
        Warrants).</p>
      <p style="margin: 0px; padding: 5px 0px; border: 0px; font-size:
        14px !important; font-weight: inherit; font-style: inherit;
        font-family: inherit; vertical-align: baseline; outline: 0px;
        line-height: 1.3;">The funds will be used to meet the cash
        requirements of the Transaction and to undertake the recommended
        work program for the Property.</p>
      <p style="margin: 0px; padding: 5px 0px; border: 0px; font-size:
        14px !important; font-weight: inherit; font-style: inherit;
        font-family: inherit; vertical-align: baseline; outline: 0px;
        line-height: 1.3;"><strong style="margin: 0px; padding: 0px;
          border: 0px; font-size: 14px; font-weight: bold !important;
          font-style: inherit; font-family: inherit; vertical-align:
          baseline; outline: 0px;"><span style="margin: 0px; padding:
            0px; border: 0px; font-size: 14px; font-weight: inherit;
            font-style: inherit; font-family: inherit; vertical-align:
            baseline; outline: 0px; text-decoration: underline;">Certain
            Conditions to Transaction</span></strong></p>
      <p style="margin: 0px; padding: 5px 0px; border: 0px; font-size:
        14px !important; font-weight: inherit; font-style: inherit;
        font-family: inherit; vertical-align: baseline; outline: 0px;
        line-height: 1.3;">The completion of the Transaction will be
        subject to the satisfaction of certain conditions, including:</p>
      <ul style="margin: 0px; padding: 0px; border: 0px; font-size:
        16px; font-weight: inherit; font-style: inherit; font-family:
        inherit; vertical-align: baseline; list-style: disc; outline:
        0px;">
        <li style="margin: 0px 0px 0px 20px; padding: 0px; border: 0px;
          font-size: 14px !important; font-weight: inherit; font-style:
          inherit; font-family: inherit; vertical-align: baseline;
          outline: 0px;">Red Hut completing the Financing; and</li>
        <li style="margin: 0px 0px 0px 20px; padding: 0px; border: 0px;
          font-size: 14px !important; font-weight: inherit; font-style:
          inherit; font-family: inherit; vertical-align: baseline;
          outline: 0px;">Receipt of Exchange approval of the Transaction
          and the Financing.</li>
      </ul>
      <p style="margin: 0px; padding: 5px 0px; border: 0px; font-size:
        14px !important; font-weight: inherit; font-style: inherit;
        font-family: inherit; vertical-align: baseline; outline: 0px;
        line-height: 1.3;"><strong style="margin: 0px; padding: 0px;
          border: 0px; font-size: 14px; font-weight: bold !important;
          font-style: inherit; font-family: inherit; vertical-align:
          baseline; outline: 0px;"><span style="margin: 0px; padding:
            0px; border: 0px; font-size: 14px; font-weight: inherit;
            font-style: inherit; font-family: inherit; vertical-align:
            baseline; outline: 0px; text-decoration: underline;">Other
            Matters</span></strong></p>
      <p style="margin: 0px; padding: 5px 0px; border: 0px; font-size:
        14px !important; font-weight: inherit; font-style: inherit;
        font-family: inherit; vertical-align: baseline; outline: 0px;
        line-height: 1.3;">Subject to regulatory approval, a finder's
        fee of 5% of the value of the Transaction is payable to Mackie
        Research Capital Corporation of Vancouver, B.C. in the form of
        Red Hut Shares.</p>
      <p style="margin: 0px; padding: 5px 0px; border: 0px; font-size:
        14px !important; font-weight: inherit; font-style: inherit;
        font-family: inherit; vertical-align: baseline; outline: 0px;
        line-height: 1.3;">This news release does not constitute an
        offer of sale of any of the foregoing securities in the United
        States. None of the foregoing securities have been and will not
        be registered under the U.S. Securities Act of 1933, as amended
        (the "1933 Act") or any applicable state securities laws and may
        not be offered or sold in the United States or to, or for the
        account or benefit of, U.S. persons (as defined in Regulation S
        under the 1933 Act) or persons in the United States absent
        registration or an applicable exemption from such registration
        requirements. This news release does not constitute an offer to
        sell or the solicitation of an offer to buy, nor will there be
        any sale of the foregoing securities in any jurisdiction in
        which such offer, solicitation or sale would be unlawful.</p>
      <p style="margin: 0px; padding: 5px 0px; border: 0px; font-size:
        14px !important; font-weight: inherit; font-style: inherit;
        font-family: inherit; vertical-align: baseline; outline: 0px;
        line-height: 1.3;"><strong style="margin: 0px; padding: 0px;
          border: 0px; font-size: 14px; font-weight: bold !important;
          font-style: inherit; font-family: inherit; vertical-align:
          baseline; outline: 0px;">ON BEHALF OF THE BOARD</strong></p>
      <p style="margin: 0px; padding: 5px 0px; border: 0px; font-size:
        14px !important; font-weight: inherit; font-style: inherit;
        font-family: inherit; vertical-align: baseline; outline: 0px;
        line-height: 1.3;">Robert Eadie, President, Chief Executive
        Officer and Director</p>
      <p style="margin: 0px; padding: 5px 0px; border: 0px; font-size:
        14px !important; font-weight: inherit; font-style: inherit;
        font-family: inherit; vertical-align: baseline; outline: 0px;
        line-height: 1.3;"><em style="margin: 0px; padding: 0px; border:
          0px; font-size: 14px; font-weight: inherit; font-style: italic
          !important; font-family: inherit; vertical-align: baseline;
          outline: 0px;">Neither the TSX Venture Exchange nor its
          Regulation Services Provider (as that term is defined in the
          policies of the TSX Venture Exchange) accepts responsibility
          for the adequacy or accuracy of this release.</em></p>
      <p style="margin: 0px; padding: 5px 0px; border: 0px; font-size:
        14px !important; font-weight: inherit; font-style: inherit;
        font-family: inherit; vertical-align: baseline; outline: 0px;
        line-height: 1.3;"><strong style="margin: 0px; padding: 0px;
          border: 0px; font-size: 14px; font-weight: bold !important;
          font-style: inherit; font-family: inherit; vertical-align:
          baseline; outline: 0px;">CAUTIONARY STATEMENT REGARDING
          FORWARD-LOOKING INFORMATION</strong>: This news release
        includes certain "forward-looking statements" under applicable
        Canadian securities legislation. Forward-looking statements
        include, but are not limited to, statements with respect to: the
        terms and conditions of the proposed Transaction; the terms and
        conditions of the proposed Financing; future work to be carried
        on the Property; use of funds; and the business and operations
        of Red Hut after the proposed transaction. Forward-looking
        statements are necessarily based upon a number of estimates and
        assumptions that, while considered reasonable, are subject to
        known and unknown risks, uncertainties, and other factors which
        may cause the actual results and future events to differ
        materially from those expressed or implied by such
        forward-looking statements. There is no assurance any of the
        forward-looking statements will be completed as described
        herein, or at all. Such factors include, but are not limited to:
        general business, economic, competitive, political and social
        uncertainties; operating and technical difficulties in
        connection with mineral exploration and development activities,
        lack of investor interest in the Financing; requirements for
        additional capital; future prices of gold and precious metals;
        changes in general economic conditions; accidents, delays or the
        failure to receive board, shareholder or regulatory approvals,
        including the required permits; results of current exploration
        and testing; changes in laws, regulations and policies affecting
        mining operations; and title disputes. There can be no assurance
        that such statements will prove to be accurate, as actual
        results and future events could differ materially from those
        anticipated in such statements. Accordingly, readers should not
        place undue reliance on forward-looking statements. Red Hut
        disclaims any intention or obligation to update or revise any
        forward-looking statements, whether as a result of new
        information, future events or otherwise.</p>
    </div>
    <div id="ctl00_p_wpcpageplaceholder_re1_contact_information"
      style="margin: 0px; padding: 0px; border: 0px; font-size: 16px;
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        font-size: 16px; font-weight: inherit; font-style: inherit;
        font-family: inherit; vertical-align: baseline; outline: 0px;
        width: 895px;">
        <div id="newsroom-contact-middle" style="margin: 0px; padding:
          0px !important; border: none !important; font-size: 16px;
          font-weight: normal; font-style: normal; font-family: Avenir,
          Helvetica, Arial, sans-serif; vertical-align: baseline;
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            inherit; vertical-align: baseline; outline: 0px;
            line-height: 30px; text-transform: uppercase; color:
            rgb(239, 64, 53) !important;">CONTACT INFORMATION</h2>
          <ul style="margin: 0px; padding: 0px; border: 0px; font-size:
            16px; font-weight: inherit; font-style: inherit;
            font-family: inherit; vertical-align: baseline; list-style:
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              <p style="margin: 0px; padding: 5px 0px; border: 0px;
                font-size: 14px !important; font-weight: inherit;
                font-style: inherit; font-family: inherit;
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                  id="ctl00_p_wpcpageplaceholder_re1_lblContact"
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              <div class="mw-contact" style="margin: 0px; padding: 0px;
                border: 0px; font-size: 14px; font-weight: inherit;
                font-style: inherit; font-family: inherit;
                vertical-align: baseline; outline: 0px;">Red Hut Metals
                Inc.<br>
                Robert Eadie<br>
                1-604-602-4935<br>
                1-604-602-4936 (FAX)<br>
                <a href="mailto:info@redhutmetals.com" style="margin: 0px; padding: 0px; border: 0px; font-size: 14px;
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                <a target="_blank" href="http://www.redhutmetals.com/" style="margin: 0px; padding: 0px; border: 0px; 
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              </div>
            </li>
          </ul>
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            class="Apple-interchange-newline">
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