Northwest Territories

OPTION – Canterra Minerals Corp. and Margaret Lake Diamonds Inc. Aug. 28 said they have entered into an option agreement whereby Margaret Lake has been granted, subject to the acceptance of the TSX Venture Exchange, the right to acquire up to an aggregate 49 percent right, title and interest in and to Canterra’s Marlin Property in the Northwest Territories. The property comprises 23 mineral claims covering an area of about 26,000 hectares and lies contiguous to the north and west of the Kennady Diamonds project and west of Margaret Lake’s Margaret Lake Property. To earn its interest in the Marlin Property, Margaret Lake must make staged cash payments totaling $100,000, issue an aggregate of 600,000 common shares and incur $1.75 million in exploration expenditures over a three-year period. Canterra is the operator, and the initial exploration program which consists of basal till sampling is expected to commence immediately. Canterra President and CEO Randy Turner, commented, “This option agreement with Margaret Lake Diamonds creates an opportunity between two companies that hold contiguous properties to the Gahcho Kué and Kennady Diamonds projects and share a similar geological environment. With the proximal nature of our land packages, the synergies of data collection and analysis, plus the additional capital to advance the Marlin Property expeditiously, we are delighted with this partnership and look forward to a mutually successful outcome.” Paul Brockington, president and CEO of Margaret Lake, said, “We are pleased to enter into this option agreement with Canterra, as we now have ground under option that surrounds all the northern and western boundaries of the Kennady Diamonds property. We look forward to combining the knowledge base of our two management teams.” Under the terms of the option agreement, Margaret Lake has the right earn an initial 30 percent interest in the Marlin Property by making staged cash payments of C$80,000 (C$20,000 paid), issuing an aggregate of 300,000 common shares and incurring not less than C$1 million in exploration expenditures over a two-year period. At their election, Margaret Lake may earn an additional 19 percent interest in the Marlin property by paying Canterra an additional C$20,000 and incurring an additional C$750,000 in exploration expenditures on or before the end of the third year. After either the 30 percent or, if elected, the 49 percent earn-in Margaret Lake and Canterra will form a joint venture for the purpose of continuing exploration and development of the Marlin property. Upon execution of a joint venture agreement, Margaret Lake will issue Canterra a further 300,000 common shares.