| Solomon Acquires COL Porphyry Cu/Ag Project, in North Central BC |
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Vancouver, Canada, December 12, 2006 Solomon Resources Limited (SRB: TSX-V) (Solomon) is pleased to announce that the Company has signed an Agreement with Indata Resources Ltd. and Nation River Resources Ltd., of Courtenay, British Columbia (Indata & Nation River) whereby Indata & Nation River will grant to Solomon an option to acquire a 100% undivided interest in and to certain mineral claims in the Omineca Mining Division, B.C. known as the COL Property To exercise the option, the Solomon must; 1. Make cash payments to Indata & Nation River totalling $1,175,000.00 and 2. Carry out exploration on the Property totalling $2,200,000.00 over a five year period as follows:
On exercise of the option Solomon shall grant the Indata & Nation River a 2% net smelter return (NSR) royalty of which one-half may be re-purchased on or before December 31, 2011 for $2,000,000. Beyond the fifth anniversary and before commencement of commercial production, Solomon must pay Indata & Nation River an advance royalty of $600,000 per year, which shall be adjusted annually for inflation and credited against the 2% NSR royalty. The advanced royalty payments will be reduced to $300,000 if Solomon purchases one-half of the NSR royalty or if Solomon determines that the Property is not economic within an additional 36th month period. Location and access The COL porphyry Cu-Au property is located within the highly prospective Quesnel trough, 97 kilometres north of Fort St. James, BC, about 5 kilometres north of the west end of Chuchi Lake. The Mt. Milligan Cu-Au porphyry deposit (257 million tonnes grading 0.510 g/t gold and 0.240 % copper; Placer Dome, 1997) is located 45 kilometres to the east. The COL property is approximately 67.8 square kilometres in size and is readily accessible from Fort St. James to within 2 kilometres of the main showings via the Omineca Resource Road and all weather, secondary logging roads. Access on the property is possible on a network of 4x4 truck roads and ATV tracks. History Copper mineralization on the COL property was discovered by Colon and Heather Campbell in 1969 following a stream sediment sampling program. The Campbells have continuously held the ground since that time. Falconbridge Nickel Mines Ltd. optioned the claims between 1970-72 and conducted soil geochemistry, ground magnetic, V.L.F. and I.P. geophysical surveys and 2,359.5 metres of diamond drilling in 32 holes. The exploration program was designed to identify a porphyry Cu-Mo deposit and the bulk of the drilling was done testing IP anomalies SE from the A-Zone where earlier drilling reported the following intercepts: 1970-71 COL PROPERTY DRILLING HIGHLIGHTS (A-Zone IP Anomalies Area)
Samples were not routinely assayed for gold and molybdenum grades were typically very low. The property was returned to the owners in 1972. In 1974 Campbell sampled a number of 3 metre segments of core for gold and the results reported gold in several samples, the highest being 2.17 ppm Au over 3 metres. Subsequent trenching by Campbell identified Cu-Au mineralization some 500 metres north of the A-Zone. In the Campbell trench area, the best trench returned an analysis of 4.88% Cu and 2.5 g/t Au across 3.8 metres. An angle, pack sack drill hole beneath this trench intersected 0.44% Cu over 18.3 metres. The Copper mineralization in both areas is mainly bornite and is associated with potassium alteration. In 1988 Kookaburra Gold Corporation optioned the property and did further soil sampling, IP surveys and trenching. In 1991, Kookaburra optioned the property to Asarco who did 1,525 metres of diamond drilling in 11 holes to test copper soil and IP anomalies in the area east of the A-Zone. This drilling indicated a broad zone of strong, chlorite alteration in syenite with minor amounts of pyrite and a number of zones of secondary K-feldspar with minor chalcopyrite. The option was terminated and the property was returned to the owners. As part of Solomons thorough review of the available data on the COL property, Solomon personnel also conducted a field examination and collected 5 grab samples in early November. Based on its analysis, Solomon concluded that there is potential for discovery of a mid-sized porphyry Cu/Au deposit, similar to the Afton Cu-Au deposit. The most obvious target to find this type of deposit on the COL property is a 1,200 meter by 200 metre, chargeability anomaly that is coincident with copper/gold soil and ground magnetic anomalies and located north and west of the A-Zone. The southern portion of the target area is till covered but the northern part has scattered outcrops with zones of secondary K-feldspar and weak copper mineralization. Solomon sample results confirming the presence significant copper and gold mineralization are tabulated below: COL PROPERTY 2006 SOLOMON FIELD EXAMINATION SAMPLE RESULTS
Solomon proposes to test A-Zone IP target area with at least five 250 metre drill holes. In addition, one 200 metre hole is planned on the A-Zone to test beneath Hole 71-9, which intersected 0.85% Cu over 33.6 metres. The object of this hole is to determine if the A-Zone widens at depth and could possibly be rooted in a more conventional type of porphyry deposit. Grid controlled soil geochemical sampling and ground magnetic and IP geophysical surveys will also be completed over prospective areas not previously surveyed. Qualified Person under National Instrument 43-101 David Tupper, P.Geol. a 'qualified person' for the purposes of National Instrument 43-101, has verified the data disclosed, including sampling, analytical and test data, contained in and supervised the preparation of this news release. QA/QC Solomon has implemented quality assurance and quality control measures in its exploration programs, including the following:
Forward Looking Statements Some of the statements in this news release contain forward-looking information, which involves inherent risk and uncertainty affecting the business of Solomon Resources Ltd. Actual results may differ materially from those currently anticipated in such statements About Solomon Resources Limited Solomon Resources Ltd. is a Canadian public company focused on the acquisition, exploration and development of gold properties world wide. The Company is managed by a proven team of exploration geologists credited with the discovery and/or development of a number of significant deposits in the world, including the SNIP, Eskay Creek, and Brewery Creek deposits in Canada, the Segala gold deposit in Mali, the Chimney Creek, Mule Canyon, Ruby Hill, Mesquite, and Ortiz gold deposits in the United States, the Gosowong deposit in Indonesia, and the Cadia East deposit in Australia. Solomon has significant gold exploration projects in Mongolia and Australia. Solomons shares trade under the banner SRB on the TSX Venture Exchange (TSX-V).For additional information visit Solomons website at www.solomonresources.ca. On Behalf of the Board of Directors of
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