AccelRate Power Systems Inc. (TSX VENTURE: AXP) is pleased to
announce that it has entered into an option agreement entitling it
to acquire a 100% interest in the BRC property, which is located in
the heart of the Yukon White Gold District only 5 km east-northeast
of the 1 million ounce Golden Saddle deposit. The BRC claims are
contiguous with and bordered by Kinross claims to the west, south,
and east. The BRC option brings the Company's total Yukon land
position under option to 3782 claims totaling more than 79,000
hectares, comprising 24 stand-alone gold prospects primarily
targeting either the Carlin or Orogenic Coffee Creek models.
The BRC option and all previously announced property options are
subject to acceptance by the TSX Venture Exchange and completion of
the Change of Business ("COB") announced by AccelRate on November
24, 2010. Upon successful completion of the COB, the Company
intends to change its name to Goldstrike Resources Ltd. and will
become a pure gold explorer.
The BRC property contains at least two strongly anomalous,
parallel east-northeast gold trends approximately 1 km long. These
two trends are parallel to, and approximately on trend with the
Golden Saddle deposit, located only 5 km to the west-southwest. The
gold values seen on the BRC claims are comparable to the values
found in the initial soil geochemistry over the Golden Saddle
deposit. The highest government gold silt anomaly in the area was
taken from a creek draining north from the parallel BRC gold
trends, and a 585.2 ppb gold soil sample was taken only 4 km east
of the BRC property in 2005. The ridge that adjoins the west side
of the BRC property is at the head of four creeks that feature
active placer mining. Based on the geochemical trends, their
orientations, and the geology and geophysics, the BRC claims appear
to have many of the key indicators that led to the discovery of the
Kinross Golden Saddle deposit.
The next phase of exploration will be planned to include
detailed geological mapping, prospecting, infill soil geochemistry,
deep auger sampling and trenching directed towards identifying key
horizons and drill target definition.
"The BRC property is a valuable strategic asset that adds
substantial value to our extensive Yukon gold exploration
portfolio," said AccelRate President and CEO Reimar Koch. "We have
an excellent land position in all of the major gold plays in the
Territory, with numerous strong targets and an experienced Yukon
technical team in place, as well as the funding required to execute
an aggressive exploration program in 2011. The Company has great
expectations for the upcoming phase of exploration. Having exposure
to this emerging gold district is certain to add shareholder value
well into the future."
Mr. Bryant, President of Petro One, said, "We are very pleased
with the additional properties that AccelRate has acquired rights
to since optioning the Lucky Strike from Petro One, and with
AccelRate's recent $ 6 million dollar financing. We will now be
able to operate as a pure oil company focused on exploration and
development while maintaining significant upside potential from a
substantial equity position in AccelRate, a 30% carried interest in
the Lucky Strike property and an NSR on each of the Lucky Strike
and BRC claim blocks. The equity position will also provide
exposure to AccelRate's 22 other Gold properties in the Yukon. We
are confident that the Lucky Strike and BRC option arrangements
will create significant additional shareholder value for the
shareholders of Petro One."
Summaries of all 24 properties under option to AccelRate are now
available for review at www.accelrate.com.
OPTION TERMS
The new option is the subject of an arm's length agreement
entered into with Petro One Energy Inc. (TSX VENTURE: POP). The
essential terms of the option are as follows:
1. The Company may exercise the option by issuing shares and
warrants as follows:
On or Before (Date) Shares Warrants Exploration Expenses
------------------ --------- --------- --------------------
TSXV Acceptance + 5 2,000,000 3,000,000 See #2
Nov. 1, 2012 1,000,000 3,000,000
Total: 3,000,000 6,000,000
2. The Agreement provides that AccelRate will arrange for a 2011
exploration program for the BRC and/or other claims under option to
AccelRate, to cost not less than $200,000, and that $200,000 of
such expenses will be incurred and paid by Petro One using
flow-through funds raised by Petro One during 2010.
3. Each Warrant issued upon TSXV acceptance will be exercisable
for five years thereafter at the exercise price of $0.70 (the
"Minimum Exercise Price"). Each Warrant issued on November 1, 2012
will be exercisable for five years thereafter at the greater of the
volume weighted average price of the Company's shares on the TSXV
over the 30 trading days immediately preceding the issue date and
the Minimum Exercise Price. No Warrant may be exercised if, after
such exercise, Petro One would hold 10% or more of AccelRate's
outstanding shares.
4. The Option entitles AccelRate to acquire a 100% interest in
the BRC property, subject to a 1% net smelter returns royalty in
favour of Petro One, an underlying 3% net smelter returns royalty
in favour of a former owner, and a 5 km Area of Interest. AccelRate
will not have the right to purchase the Petro One NSR, but will
have the right to purchase one-third (i.e. 1%) of the underlying
NSR for $1,000,000 at any time prior to the commencement of
commercial production.
5. All shares issued to exercise the option will be subject to a
four month hold. AccelRate must keep the claims in good standing,
apply all work carried out towards assessment and file such
assessment reports within 6 months of completing any exploration
work. In addition, AccelRate will be responsible for all
reclamation required.
There has been no change to the status of the COB. The Company
is making required filings respecting the COB in accordance with
Exchange Policy. It anticipates those filings will be reviewed in
the ordinary course. However, the TSXV has in no way passed upon
the merits of the proposed COB and has neither approved nor
disapproved the contents of this press release. There can be no
assurance that that the COB or other transactions described herein
will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the Filing
Statement or Management Information Circular to be prepared in
connection with the proposed COB, any information released or
received with respect to the COB may not be accurate or complete
and should not be relied upon. Trading in the securities of
AccelRate should be considered highly speculative.
The technical information in this news release has been reviewed
by Trevor J. Bremner, M.Sc., P.Geo., a qualified person for the
purposes of National Instrument 43-101.
Reimar Koch, President
AccelRate Power Systems Inc.
Peter Bryant, President
Petro One Energy Inc.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: AccelRate Power Systems Inc. Reimar Koch (604)
688-8656 (604) 688-8654 (FAX) info@accelrate.com www.accelrate.com
Petro One Energy Corp. Jeff Stuart (604) 566-9089 or Toll free:
(877) 566-9089 (604) 564-8003 (FAX) info@petrooneenergy.com
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