Roughrider Signs Option Agreements to Acquire up to 80% in Saskatchewan Properties and Announces Proposed 5:1 Consolidation

 

VANCOUVER, BC / ACCESSWIRE / June 7, 2018 / Roughrider Exploration Limited (TSX-V: REL) ("Roughrider" or the "Company") – is pleased to announce that it has signed Option Agreements with Eagle Plains Resources Ltd. ("Eagle Plains") to acquire up to an 80% interest in the Brownell Lake (base metals) and Olsen (gold) exploration properties located near La Ronge Saskatchewan. No shares will be issued in connection with the option agreements. The terms of the option agreements are as follows.

Brownell Lake Option Agreement

Under the terms of the Brownell Lake Option Agreement, Eagle Plains will grant the Company the right to acquire up to an 80% interest in and to Brownell Lake (subject to the 2% NSR ) by making aggregate cash payments of up to $2,500,000 and incurring exploration expenditures of up to $7,000,000 over a period of up to four years as follows:

1. To earn an initial 60% interest:

Aggregate cash payments of $500,000 according to the following schedule:

• $25,000 on or before March 31, 2019
• $50,000 ($75,000 total) on or before March 31, 2020
• $125,000 ($200,000 total) on or before March 31, 2021
• $300,000 ($500,000 total) on or before March 31, 2022

2. Aggregate exploration expenditures of $3,000,000 according to the following schedule

• $100,000 on or before December 31, 2018
• $300,000 ($400,000 total) on or before December 31, 2019
• $600,000 ($1,000,000 total) on or before December 31, 2020
  -$2,000,000 ($3,000,000 total) on or before December 31, 2021

2. To earn an additional 20% interest (total 80%):

1. Additional $2,000,000 cash payment $2,500,000 total) and $4,000,000 exploration expenditures ($7,000,000 total) within 2 years of the date of election to exercise the initial option

Olsen Option Agreement

Under the terms of the Olsen Agreement, Eagle Plains will grant the Company the right to acquire up to an 80% interest in and to the Olsen Property (subject to the 2% NSR ) by making aggregate cash payments of up to $2,500,000 and incurring exploration expenditures of up to $7,000,000 over a period of up to four years as follows:

3. To earn an initial 60% interest:

Aggregate cash payments of $500,000 according to the following schedule:

• $25,000 on or before March 31, 2019
• $50,000 ($75,000 total) on or before March 31, 2020
• $125,000 ($200,000 total) on or before March 31, 2021
• $300,000 ($500,000 total) on or before March 31, 2022

Aggregate exploration expenditures of $3,000,000 according to the following schedule

• $100,000 on or before December 31, 2018
• $300,000 ($400,000 total) on or before December 31, 2019
• $600,000 ($1,000,000 total) on or before December 31, 2020
  -$2,000,000 ($3,000,000 total) on or before December 31, 2021

4. To earn an additional 20% interest (total 80%):

1. Additional $2,000,000 cash payment $2,500,000 total) and $4,000,000 exploration expenditures ($7,000,000 total) within 2 years of the date of election to exercise the initial option

The Company is pleased to be adding to its exploration portfolio in Saskatchewan.

Proposed 5:1 Consolidation

The Company also reports it proposes to consolidate the Company's common shares on the basis of one (1) post-consolidation common share for every five (5) pre-consolidation common shares. In accordance with current TSXV policies, shareholder approval will not be required for the proposed consolidation. The proposed consolidation has been approved by the Company's board of directors.

Management believes the share consolidation will provide the Company with greater flexibility in its ability to finance the Company and advance its projects. The Company currently has no plans to change its name in connection with the proposed share consolidation. The share consolidation will be subject to acceptance for filing by the TSX Venture Exchange.

The Company currently has an aggregate of 47,082,757 common shares issued and outstanding. It is anticipated that upon completion of the share consolidation, there will be approximately 9,416,551 common shares issued and outstanding, subject to any existing stock options being exercised prior to the effective date of the consolidation.

The Company currently has outstanding stock options exercisable to purchase an aggregate of 2,400,000 common shares at exercise prices ranging from $0.07 to $0.22. Upon completion of the share consolidation, there would be stock options outstanding to purchase an aggregate of 480,000 common shares at exercise prices ranging from $0.35 to $1.10, based on the current number of outstanding stock options.

The Company currently has outstanding warrants exercisable to purchase an aggregate of 5,305,880 common shares an exercise price of $0.10. Upon completion of the share consolidation, there would be warrants outstanding to purchase an aggregate of 1,061,176 common shares at an exercise price of $0.50, based on the current number of outstanding warrants.

The effective date of the consolidation will be disclosed in a subsequent news release. Notwithstanding the foregoing, the board of directors may, at its discretion, determine not to effect the consolidation.

About Roughrider Exploration Limited

Roughrider and its partner Kivalliq Energy are exploring the Genesis uranium project located in the Wollaston-Mudjatik geological trend extending northeast from Saskatchewan's Athabasca Basin. In addition, Roughrider has acquired options on the Brownell Lake and Olsen property options near La Ronge Saskatchewan and the Silver Ace and Sterling projects in central British Columbia.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Certain information contained or incorporated by reference in this press release, including any information as to our strategy, projects, plans or future financial or operating performance, constitutes "forward-looking statements." All statements, other than statements of historical fact, are to be considered forward-looking statements. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by the company, are inherently subject to significant business, economic, geological and competitive uncertainties and contingencies. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include but are not limited to: fluctuations in market prices, exploration and exploitation successes, continued availability of capital and financing, changes in national and local government legislation, taxation, controls, regulations, expropriation or nationalization of property and general political, economic, market or business conditions. Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance and, therefore, readers are advised to rely on their own evaluation of such uncertainties. All of the forward-looking statements made in this press release, or incorporated by reference, are qualified by these cautionary statements. We do not assume any obligation to update any forward-looking statements.

CONTACT:

Scott Gibson, Chief Executive Officer
604-697‐0028

SOURCE: Roughrider Exploration Limited