Colibri Resources Corp. (CBI)

[MWM]

Colibri signs Letter of Intent with Agnico-Eagle Mines Ltd. to form joint venture
December 07, 2010

Colibri Resource Corporation and Agnico-Eagle Mines Ltd. (AEM) have signed a Letter of Intent (LOI) that allows AEM to acquire up to 75 percent of the Colibri gold claim in Sonora, Mexico and form a joint venture by making qualified exploration expenditures and payments to Colibri. AEM currently operates 6 gold mines and will produce in excess of one million ounces of gold in 2010, including production from the Pinos Altos mine in Chihuahua, Mexico. This LOI is conditional upon the approval of AEM's and Colibri's Board of Directors, the completion of due diligence by AEM and approval by the TSX-Venture Exchange.

The Colibri claim, centered within the Sonora gold belt near the city of Caborca, hosts dozens of historical artesanal mine workings that mostly occur on two northwest-trending thrust fault-detachment fault systems that transect the claim package. Similar major structures along strike with the Colibri claim host the largest gold mine in Mexico, (La Herradura, operated jointly by Newmont and Industrias Penoles SA de CV), the El Chanate mine operated by Capital Gold, the San Francisco mine operated by Timmins Gold Corporation, and other advanced projects such as Noche Buena (located 20 km northwest of Colibri and currently being developed by Penoles).


Upon signing of a formal agreement, AEM shall purchase 3 million shares of Colibri at $0.15 per share with the right to purchase an equal amount of shares at $0.25 per share within the next two years. During the next 3 years, AEM must spend a minimum of 3 million dollars (US$) performing mineral exploration and complete a feasibility study within 5 years to earn up to 75% of the project. In addition, AEM will make option payments totaling $1,451,000 over a 7 year period. After completion of a positive feasibility study and earning 75% of the project, AEM and Colibri will form a joint venture to develop the project.

"This project has garnered attention from other exploration and/or mining companies during the past year because of its location and past exploration activities. We are excited that AEM, with a successful record of starting mines in areas including Mexico, will be employing their significant resources to explore this property", said Lance Geselbracht, President of Colibri. "This joint venture agreement provides Colibri the impetus to restart exploration work on the three other projects in the State of Sonora (see June 23, 2010 news release, www.colibriresourcecorp.com)."


About Colibri Resources:

Colibri owns four claim concessions in the Mexican state of Sonora. In addition to the Colibri gold claim, Colibri recently acquired the 500 hectare Evelyn gold claim located 12 kilometers northeast of the Noche Buena project. The Ramard claim is 8400 hectares, located near the city of Carbo, contains silver, zinc and lead in a skarn (see successful drill results reported in January through June, 2007 news releases). The 6600 hectare Leon claim is a large molybdenum-copper porphyry contiguous with the Creston Moly project currently in final feasibility stages for mine production. Additional property information can be found on the company website at www.colibriresourcecorp.com/s/Projects/asp.