Hercules Metals signs lease option for 1,472.65 acres

Mr. Chris Paul reports HERCULES METALS SECURES STRATEGIC LEASE OPTION FOR ADDITIONAL 1,473 ACRES OF PRIVATE LAND ADJACENT TO THE HERCULES PROJECT IN WESTERN IDAHO Hercules Metals Corp.'s wholly owned U.S. subsidiary has entered into a definitive real property lease with option to purchase agreement with an arm's-length private landowner to secure an additional 1,473 acres of private land, contiguous with its Hercules property in Washington county, Idaho. The private expansion represents a strategic addition to the company's greater-than-100,000-acre land position in the Hercules copper belt. The lands include both surface and mineral rights, directly along trend with the Leviathan porphyry copper system, as well as a series of strong MT (magnetotelluric) conductivity anomalies extending along a south-trending corridor. The company currently holds surface mining rights covering approximately 1,800 acres across the full extent of the Leviathan copper discovery. If the option is exercised, total surface rights would increase to approximately 3,273 acres, further strengthening the company's control over key areas of the system. Chris Paul, chief executive officer of Hercules Metals, stated: "This agreement secures a highly strategic block of private land contiguous with our Hercules project, where exploration indicates strong potential to extend the Leviathan system south. The transaction provides long-term exploration certainty, flexibility and a clear pathway to ownership of private land that is well positioned to support future development activities, including potential site infrastructure." Transaction terms Pursuant to the agreement, the company's wholly owned U.S. subsidiary, Anglo-Bomarc U.S., Inc., has been granted an eight-year lease over approximately 1,472.65 acres of private land located in Washington county, Idaho, together with an exclusive option to acquire a 100-per-cent interest in the property. In consideration for the rights granted under the agreement, the company will make annual lease payments of $125,000 (U.S.), payable in advance at the commencement of each lease year. The agreement may be terminated by Anglo at any time, upon 30 days of written notice, subject to the satisfaction of any outstanding obligations, including reclamation. The lease grants Anglo the exclusive right to conduct mineral exploration activities on the property during the term of the lease, including drilling and geophysical surveys. The agreement also provides Anglo with the exclusive and irrevocable option to purchase the property at any time during the lease term at fair market value, subject to a minimum purchase price of $4.5-million (U.S.) and a maximum purchase price of $5.8-million (U.S.). The purchase price will be determined through an independent appraisal process, whereby each party appoints a qualified appraiser, with provisions for a third appraisal in the event of a material variance. Qualified person The scientific and technical information in this news release has been reviewed and approved for disclosure by Dillon Hume, PGeo, and vice-president, exploration, for the company. Mr. Hume is a qualified person for Hercules Metals within the meaning of National Instrument 43-101, Standards of Disclosure for Mineral Projects. About Hercules Metals Corp. Hercules Metals is an exploration company focused on developing America's newest porphyry copper district in Idaho. The 100-per-cent-owned Hercules project, located northwest of Cambridge, hosts the newly discovered Leviathan porphyry copper system, one of the most important new discoveries in the country to date. The company is well positioned for growth through continued drilling, supported by a strategic investment from Barrick Mining Corp. With the potential for significant scale, the company's management and board of directors aims to deliver value to shareholders through proven discovery success. We seek Safe Harbor.