TORONTO, Ontario, Sept. 2, 2004 (PRIMEZONE) -- Eastmain Resources Inc. (TSE:ER) is pleased to inform shareholders that it has completed its previously announced acquisition of the remaining interest in the Clearwater Project held by SOQUEM. Eastmain now holds 100% interest in Clearwater. SOQUEM has retained a 2% net smelter return royalty and Eastmain has the right to purchase one-half of the NSR for $1,000,000.
To acquire SOQUEM's remaining interest in the Clearwater Project, Eastmain made a cash payment of $500,000 on the signing of the property acquisition agreement. The Company is required to make an additional cash payment of $500,000 to SOQUEM on May 31, 2005. Eastmain has also issued 500,000 common shares and 500,000 share-purchase warrants to SOQUEM. The share-purchase warrants are exercisable for two years at a price of $1.50 in the first year and a price of $2.00 the second year.
Eastmain is currently continuing surface exploration at Clearwater. The Company recently announced the expansion of the Eau Claire deposit both laterally and vertically through widely spaced drilling (Sept. 1, 2004). Visible gold was reported in five of seven holes drilled in the current program. Plans to complete a surface bulk sample from the Main Group of veins at Eau Claire to define the economic and mining parameters of the deposit are underway. The 2004 exploration program will continue with deep drilling, designed to expand the known gold resource. Additional property-scale regional targets will also be tested in the hopes of discovering a second gold deposit elsewhere on the property. Richard Roy, P.Geo, is the qualified person for the project. Samples are shipped to ALS Chemex Labs in Mississauga, Ontario, for analysis.
Eastmain's primary objective is the exploration, discovery and development of long-life, low-cost profitable ore deposits in Canada. The Corporation has formed a five-year strategic alliance with Goldcorp Inc. Eastmain and Noranda Inc. have also completed 14,800 line-kilometres of Megatem II airborne geophysical surveys, a new technology proven to detect hidden ore deposits. Several top priority targets are slated for future drill testing.
The statements made in this Press Release may contain forward-looking statements that may involve a number of risks. Actual events or results could differ materially from the Company's expectations and projections.