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September 12, 2012- Vancouver, B.C., Canada - International Montoro Resources Inc. (“Montoro”) (TSX-V: IMT) has signed a Letter of Intent (“LOI”) with Five Nines Ventures Ltd. (C:FIV) for option on the southern portion of its Serpent River, Elliot Lake, Ontario claims. The claims consist of 7 mining claims (87 units) covering approximately 1,392 hectares located in Gaiashk Township.

Pursuant to the general terms of the LOI, Five Nines will earn 100% interest in the property, hereinafter to be referred to as the Serpent River II Property. Five Nines, as Optionee, will earn the undivided interest in the Serpent River II, by providing the following consideration and performing the following:
1.Cash Consideration:
Total cash consideration payable is $500,000 as follows:
  • $25,000 will be paid to Montoro upon execution of the LOI;
  • A further $50,000 will be paid to Montoro upon receipt of regulatory approval of the formal Definitive Agreement; and
  • An additional $425,000 will be payable to Montoro in installments over a period of five years, ending December 31, 2017.
2.Share Consideration
Total share consideration is 2,000,000 common shares of Five Nines issuable to Montoro in the following tranches:
  • 500,000 common shares of FIV upon receipt of regulatory approval;
  • 500,000 common shares of FIV issuable to Montoro on December 31 of each year, commencing on December 31, 2013 until December 31, 2015.
3.Work Commitments/Earned Interest
As Optionee, Five Nines will be obligated to spend a total of $1,500,000 in exploration expenditures over a period of five years to earn 100% interest in the Serpent River II. Earning of this 100% interest is subject to the following criteria:
  • $200,000 to be completed in the 1st year, and a further $250,000 to be expended on or before December 31, 2014 to earn an initial 30% undivided interest;
  • To earn up to a cumulative 60% undivided interest, Five Nines will commit to expend an additional $450,000 on or before December 31, 2015;
  • To earn up to a cumulative 80% undivided interest, Five Nines will commit to expend an additional $300,000 on or before December 31, 2016;
  • To earn the full 100% undivided interest, Five Nines will commit to expend an additional $300,000 on or before December 31, 2017.
In addition, the Serpent River II will be subject to a Net Smelter Royalty of 3%, with each 1% able to be purchased by Five Nines for $1,000,000.
Management of Five Nines believes that the opportunity presented with the proposed acquisition of the Serpent River II, provides the Company with a uniquely robust rare earth/uranium exploration target, enhancing the potential viability of current exploration with the Serpent River I, as is currently underway. Five Nines is currently awaiting drill core analysis from Phase I of exploration.
Neighboring explorer, Pele Mountain Resources (TSX.V: GEM), has provided a strong indication of the potential of the area, exemplified by its recent news release dated September 5, 2012, wherein Pele Mountain received unanimous support from local communities to continue development of its Eco-Ridge rare earth property into a full mining operation. This decision was supported by a positive National Instrument 43-101, Preliminary Economic Assessment of Pele’s mineral holdings situated next door to Five Nines and Montoro.
The development with Pele Mountain has spurred Five Nines interest in the expansion of its current mineral asset base by entering into the LOI to acquire the Serpent River II from Montoro.
Five Nines Ventures Ltd., President, Carmen Parente states, “We feel that the opportunity to acquire these additional claims from International Montoro Resources Inc. will culminate in an economic deposit of significant proportion, capable of being developed to full mining potential”.
About International Montoro Resources Inc.
Montoro recently acquired a 100% interest in 23 mineral claims prospective for Rare Earth Elements, in 2 separate claim blocks covering 18,743 acres (7,585 ha) in the new Tacheeda Lake camp; and 3,330 acres (1,348 ha) Carbo area. Montoro also holds a 100% interest in 5,604 acres (2,268 ha, 5 claims – the Chuchinka property) contiguous to and adjoining the Wicheeda, a previously reported Rare Earth discovery, northeast of Prince George, B.C.
Montoro is also focused on advancing its 100% optioned Elliot Lake uranium/REE project in northern Ontario.
In addition the Company will continue the development with Belmont Resources Inc. (50/50) of its Crackingstone – 2,.427 acres (982 ha) and Orbit –27,450 acres (11,109 ha) uranium properties in the Uranium City District – Northern Saskatchewan. The Company also holds one claim block (50/50 with Belmont) located in the historical Letitia Lake-Red Wine rare earth metals camp of west-central Labrador.
ON BEHALF OF THE BOARD OF DIRECTORS,
“Gary Musil”
Gary Musil, President
CEO/Director
Neither the 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. The statements used in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Companies forward-looking statements and expectations.
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