Last updated on April 21, 2014 at 5:04 EDT

Guyana Frontier Receives Notice of Option Exercise for Sardine Hill Project

March 21, 2012

VANCOUVER, March 21, 2012 /PRNewswire/ – Guyana Frontier Mining Corp. (“Guyana
Frontier”) is pleased to announce it has received notice from
Mulgravian Ventures Corporation (“Mulgravian”) that Mulgravian has
exercised its option (the “Option”) in respect of the Sardine Hill
property (“Sardine Hill”), located in Guyana, South America.  Under the
terms of the option agreement (the “Option Agreement”) between Guyana
Frontier and Mulgravian dated May 14, 2010, Mulgravian has earned its
51% interest in Guyana Frontier’s rights to Sardine Hill, with Guyana
Frontier retaining a 49% interest, and a joint venture has commenced
between the two parties.

Mulgravian earned its 51% working interest in Sardine Hill by incurring
exploration expenditures and by making share purchases in Guyana
Frontier, as follows:

        --  Exploration expenditures and property acquisition payments on
            Sardine Hill of US$3.0 million;
        --  Investing CDN$1.5 million in the purchase of common shares of
            Guyana Frontier by way of a non-brokered private placement (the
            "Sardine Hill Private Placement") and the subsequent exercise
            of warrants issued in the Sardine Hill Private Placement.

The Sardine Hill Private Placement was closed on February 2, 2010 and
received TSX-V approval on February 9, 2010. Mulgravian fulfilled its
final warrant exercise related to the Sardine Hill option agreement in
February 2012 by purchasing 312,500 common shares of Guyana Frontier at
a price of $1.60 per share, for gross proceeds to Guyana Frontier of

Under the terms of the Option Agreement, Mulgravian will act as operator
of Sardine Hill work programs. An inaugural joint venture meeting is
planned for early April 2012 to discuss and finalize programs and
budgets for upcoming exploration at Sardine Hill.

For more information regarding the Option Agreement and the Sardine Hill
Private Placement, please see Guyana Frontier’s news releases dated
June 8, 2010 and April 6, 2010.

About Sardine Hill

Sardine Hill is a gold exploration project that consists of one Large
Scale Prospecting Licence totaling 10,427 acres (4,219 hectares)
located approximately 90 kilometres from the capital city of
Georgetown. In January 2010, Guyana Frontier signed an agreement (the
“Underlying Option Agreement”) with Mariwa Mining Inc. (“Mariwa”), a
private Guyanese corporation, and has the right to earn a 100% interest
in Sardine Hill from Mariwa subject to a 3% net smelter returns royalty
(the “Underlying Option”). In 2011, Guyana Frontier completed a diamond
drilling program totaling 3,076 metres at Sardine Hill (see Guyana
Frontier news release dated June 16, 2011).

Following the exercise of the Option by Mulgravian, Mulgravian and
Guyana Frontier will work on a joint venture basis to complete the
exercise of the Underlying Option on Sardine Hill pursuant to the terms
of the Underlying Option Agreement. Further information regarding the
Underlying Option Agreement can be found in Guyana Frontier’s news
release dated April 6, 2010.

About Guyana Frontier

Guyana Frontier is a public mineral exploration company listed on the
TSX Venture Exchange (TSX-V: GYG), and is focused on the exploration,
discovery and development of precious metals deposits located within
Guyana, South America. Guyana Frontier began acquiring interests in
Guyanese exploration properties in 2007, and now holds various rights
to obtain working interests in approximately 342,000 acres (138,400
hectares) of prospective lands. Guyana Frontier’s goal is to develop a
significant gold resource at the Marudi Mountain Gold Project in
southern Guyana, and to explore its other Guyanese projects using
funding from exploration partners.

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.


This release contains “forward-looking statements” within the meaning of
applicable Canadian securities legislation. Forward-looking statements
include, but are not limited to, statements that address activities,
events or developments that Guyana Frontier expects or anticipates will
or may occur in the future, including such things as planned
exploration activities at the Sardine Hill property, the operation of
the joint venture between Guyana Frontier and Mulgravian, the exercise
of the Underlying Option, future business strategy, competitive
strengths, goals, expansion, growth of Guyana Frontier’s businesses,
operations, plans and with respect to exploration results, the timing
and success of exploration activities generally, permitting time lines,
government regulation of exploration and mining operations,
environmental risks, title disputes or claims, limitations on insurance
coverage, timing and possible outcome of any pending litigation and
timing and results of future resource estimates or future economic

Often, but not always, forward-looking statements can be identified by
the use of words such as “plans”, “planning”, “planned”, “expects” or
“looking forward”, “does not expect”, “continues”, “scheduled”,
“estimates”, “forecasts”, “intends”, “potential”, “anticipates”, “does
not anticipate”, or “belief”, or describes a “goal”, or variation of
such words and phrases or state that certain actions, events or results
“may”, “could”, “would”, “might” or “will” be taken, occur or be

Forward-looking statements are based on a number of material factors and
assumptions, including, the result of drilling and exploration
activities, that contracted parties provide goods and/or services on
the agreed timeframes, that equipment necessary for exploration is
available as scheduled and does not incur unforeseen break downs, that
no labour shortages or delays are incurred, that plant and equipment
function as specified, that no unusual geological or technical problems
occur, and that laboratory and other related services are available and
perform as contracted. Forward-looking statements involve known and
unknown risks, future events, conditions, uncertainties and other
factors which may cause the actual results, performance or achievements
to be materially different from any future results, prediction,
projection, forecast, performance or achievements expressed or implied
by the forward-looking statements. Such factors include, among others,
the interpretation and actual results of current exploration
activities; changes in project parameters as plans continue to be
refined; the existence of weather conditions suitable for exploration
activities; future prices of minerals; possible variations in grade or
recovery rates; failure of equipment or processes to operate as
anticipated; the failure of contracted parties to perform; labour
disputes and other risks of the mining industry; delays in obtaining
governmental approvals or financing or in the completion of
exploration, as well as those factors disclosed in Guyana Frontier’s
publicly filed documents. Although Guyana Frontier has attempted to
identify important factors that could cause actual actions, events or
results to differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events or
results not to be as anticipated, estimated or intended. There can be
no assurance that forward-looking statements will prove to be accurate,
as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements.

SOURCE Guyana Frontier Mining Corp.

Source: PR Newswire