VANCOUVER, CANADA, January 3, 2013 - Hi Ho Silver Resources Inc. ("Hi Ho" or the "Company") (CNSX: HHS) is pleased to announce it has signed an option agreement (the "Agreement") with Peter Knudsen and family (the "Vendors") to acquire a 100% interest in the English Bay mineral property (the "Property") located in the LaRonge Gold belt in northern Saskatchewan. The Agreement supersedes and replaces a letter of intent announced by the Company on October 25, 2012.
Pursuant to the terms of the Agreement, the Company will have exercised the option by paying to the Vendors, an aggregate of $114,000, issuing an aggregate of 7,100,000 common shares of the Company ("Shares") to them, and by incurring $500,000 in exploration expenditures over a period of 3 years as follows:
-4,600,000 Shares to be issued on signing of the Agreement, with these shares having been issued and having a hold period to May 3, 2013;
-$30,000 to be paid, 700,000 Shares to be issued, and the Company will incur $200,000 in exploration expenditures on the Property on or before the first anniversary of the Agreement;
-$39,000 to be paid, 800,000 Shares to be issued, and the Company will incur $300,000 in cumulative exploration expenditures on the Property on or before the second anniversary of the Agreement; and
-$45,000 to be paid, 1,000,000 Shares to be issued, and the Company will incur $500,000 in cumulative exploration expenditures on the Property on or before the third anniversary of the Agreement.
The English Bay mineral property is a contiguous area of approximately 2,087 hectares (5,157 acres), consisting of four mineral claims. The Property has historical exploration work, including 35 diamond drill holes completed by a private company (Historical exploration results are not compliant with the standards of National Instrument 43-101).
The Property is an early stage exploration project prospective for gold. Based on the historical work and technical review, Hi Ho and the Vendors are generating new drill targets and a diamond drilling program during the first quarter of 2013 is being developed and planned.
The LaRonge Gold belt is home to many past and currently operating mines, including Anglo Rouyn, Contact Lake, Jolu, Roy Loyd, and Komis, with additional projects and operations currently being developed.
The reader is cautioned that there are no known mineral resources on the English Bay Gold Property, and there can be no assurance that if any resources are established that any such resource could be economically recovered. The data in this release have been reviewed and approved by Kristopher Raffle, B.Sc., P.Geo., who is a Qualified Person as defined by NI 43-101.
Hi Ho is a Canadian exploration company dedicated to the exploration of precious metal deposits across Canada. For further information on the Company and its projects, please visit our website at www.hihoresources.com or contact our President and CEO, Mr. Dennis McKnight.
On Behalf of the Board of Directors
President , Chief Executive Officer and Director
Hi Ho Silver Resources Inc.
Tel: (604) 629-1928
The Canadian National Stock Exchange (CNSX) has not reviewed and does not accept responsibility for the adequacy or the accuracy of the contents of this document. Company information can be viewed here: www.CNSX.ca Note: Further information regarding the Company can be found on SEDAR at www.SEDAR.com
FORWARD LOOKING STATEMENTS
This release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as planned exploration activities on the Property, the establishment of a NI 43-101 compliant resource on the Property, future business strategy, competitive strengths, goals, expansion, growth of the Company's businesses, operations, plans and with respect to exploration results, the timing and success of exploration activities generally, permitting time lines, government regulation of exploration and mining operations, environmental risks, title disputes or claims, limitations on insurance coverage, timing and possible outcome of any pending litigation and timing and results of future resource estimates or future economic studies.
Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "planning", "planned", "expects" or "looking forward", "does not expect", "continues", "scheduled", "estimates", "forecasts", "intends", "potential", "anticipates", "does not anticipate", or "belief", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements are based on a number of material factors and assumptions, including, the result of drilling and exploration activities, that contracted parties provide goods and/or services on the agreed timeframes, that equipment necessary for exploration is available as scheduled and does not incur unforeseen break downs, that no labour shortages or delays are incurred, that plant and equipment function as specified, that no unusual geological or technical problems occur, and that laboratory and other related services are available and perform as contracted. Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; the existence of weather conditions suitable for exploration activities; future prices of minerals; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in the company's publicly filed documents. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking 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.
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