Full Metal and Kinross Enter into Exploration Alliance in Alaska, Yukon
Vancouver, BC — February 29, 2008 — Full Metal Minerals (FMM-TSX:V) and Kinross Gold Corporation (K-TSX) are pleased to announced that they have entered into a Letter of Intent to form an exploration alliance to explore for gold deposits in Alaska and the Yukon Territory.
Kinross will make a one-time cash payment of US$50,000 to Full Metal. Under an initial two year term, Kinross and Full Metal have each agreed to budget in 2008, US$150,000 for compilation and generative field work, targeting one or more regions in Alaska and the Yukon, with an additional amount in 2009 to be determined by a joint management committee.
Alliance projects will be funded on a 50/50 ownership basis for the first US$1,000,000 in initial project expenditures. Following completion of such initial work, Kinross would have an option to increase its ownership to 75% by completing a Feasibility Study in respect to each specific Project. At any time following the initial expenditures, Kinross may terminate its earn-in right for a 2% NSR royalty. Full Metal will have the right to pursue any non-gold targets within the target areas on a 100% basis.
Full Metal and Kinross are planning an exploration program consisting of surface mapping, sampling, geophysics and mechanical trenching for 2008. Full Metal’s exploration team will utilize Kinross’ extensive historical database to generate new targets and Kinross will be able to access Full Metal’s exploration expertise in the partnership.
Full Metal is a generative exploration company with over $17 million in exploration planned for Alaska and the Yukon Territory. The 2008 drill programs will include the 40 Mile Project, Lucky Shot Property, Mt. Andrew Property, Moore Creek Property, CJ Property, Pebble South Property, and OG Property. The Company has Joint Venture Agreements with Freeport McMoRan, BHP Billiton, Metallica Resources, Triex Minerals, Altair Ventures, Highbury Projects and Millrock Resources.
ON BEHALF OF THE BOARD OF DIRECTORS
President and Director
Contact: Jeff Sundar
Manager, Investor Relations
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.