TSX Venture

[howestreetbull]

KOK.v negotiating to pick up a ppty directly adjacent to CAN.v's Handeni ppty...should be worth a pop imho...hsb

Kokanee Minerals Inc
Symbol C : KOK
Shares Issued 18,873,913
Close 2010-10-05 C$ 0.13
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Kokanee negotiates 80% interest in Tanzania property

2010-10-06 01:17 ET - News Release


Ms. Antonia Bold de Haughton reports

KOK NR ACQUISITION OF CAN N TZ

Based on its experience and presence in Tanzania, Kokanee Mineral Inc. has been offered a prospective property adjacent to the Canaco property in the Handeni area of Tanzania. The property consists of approximately 65 square kilometres immediately north of the north boundary of the Canaco property. The south boundary of the property is approximately 10 to 12 kilometres north of the Magembazi zone.

The company's director and vice-president, exploration, has visited the area this past week to ascertain the position of the property and the geology. He has directed his geological team to carry out preliminary investigations in the next week. However, he has reported that several of the prominent ridges associated with the Magembazi zone and the dark red soil also associated with the zone are present on this property and has recommended the property acquisition.

The company is currently negotiating the terms to acquire an option to purchase an 80-per-cent interest in the property. The basic terms under negotiation by which the option may be exercised by the company are as follows:


Paying $275,000 and issuing 1,466,666 common shares within five days of TSX Venture Exchange approval of the transaction;


Paying $600,000 and issuing 1,466,666 common shares on or before 13 months from exchange approval;


Issuing an additional 1,466,666 common shares on or before the second anniversary of exchange approval;


Incurring $350,000 in exploration expenditures in the first year after exchange approval;


Incurring an additional $750,000 in exploration expenditures on or before the second anniversary of exchange approval.

Negotiations are continuing.

The company has also arranged a non-brokered private placement of up 7.5 million units at a price of 15 cents per unit. Each unit will comprise one common share and one non-transferable share purchase warrant entitling the holder to purchase one additional common share for a period of two years at the exercise price of 20 cents per share purchase warrant for the first year and 25 cents for the rest of the term. The maximum allowable finder's fee shall be payable in connection with this private placement in cash, shares, warrants or a combination of the foregoing.

This release has been reviewed by Laurence Stephenson, PEng, the designated qualified person