October 17, 2012 – Vancouver, B.C. Canada – Belmont Resources Inc. (“Belmont”) (TSX.V:BEA) has signed a Letter of Intent (“LOI”) with Yuntone Capital Corp. (“Yuntone”)(TSX.V:YTC.H) for an option on the Lumby/Bufo claims, Thunder Bay Mining Division, near Atikokan, Ontario. The property forms a block of 23 contiguous mineral claims, totaling (190 units) - 3,040 hectares within the Norway and Richardson Lake Townships. The property is bounded to the south by the Osisko Mining Corp. (former Brett Resources Ltd.) “Hammond Reef” gold deposit.
Pursuant to the terms of the LOI, Yuntone will earn up to 60% interest in the Lumby/Bufo Property by providing the following consideration and performing the following:
1. Cash Consideration of $50,000 which includes $10,000 upon execution of the LOI (non-refundable);
2. Share Consideration:
• 250,000 common shares of Yuntone –On or before the Listing Date, subject to approval of the TSX Venture Exchange;
• 100,000 additional common shares of Yuntone should Yuntone desire to earn an additional 10% interest for a total 60% interest.
3. Work Commitments totaling $1.5 million:
• $250,000 on or before 12 months after the Listing Date, subject to approval of the TSX Venture Exchange;
• $250,000 additional on or before 24 months after the Listing Date;
• $500,000 additional on or before 36 months after the Listing Date, for a total $1.0 million to earn 50% interest;
• $500,000 additional on or before 48 months after the Listing Date, for a total $1.5 million to earn a total 60% interest.
In addition, the Lumby/Bufo property will be subject to a Net Smelter Royalty of 3% payable to the original vendor.
The above option/transaction is intended to be Yuntone’s “Qualifying Transaction” as that term is defined in Policy 2.4 of the TSX Venture Exchange (the “Exchange”). To date, Yuntone has been a capital pool company with the business of identifying a qualifying transaction.
Upon completion of the option/transaction, Yuntone expects that it will be classified as a Tier 2 mining issuer under the policies of the Exchange.
A finder’s fee of 8% of the cash consideration will be paid in stages, subject to regulatory approval.
Further information on the property can be reviewed through Belmont’s website at www.BelmontResources.com and the link on the Lumby-Bufo property page to the NI 43-101 Technical Report titled “2010 Drilling Program at the Bufo Lake & Bufo-Lumby Property, Atikokan, Ontario, Canada” prepared by R.A. Bernatchez, P.Eng., Consulting Geologist dated October 24, 2010.
The Company has signed an Amended Office Services Agreement effective September 1, 2012 with the Chief Financial Officer, subject to regulatory approval. Upon acceptance the agreement will be filed on SEDAR.
About Belmont Resources Inc.
The Company has recently entered into a property option agreement to acquire four groups (51) mineral claims, representing 2,254.27 hectares located in the Berthiaume, Orvilliers and Joutel Townships, all located within the Abitibi Harricana-Turgeon volcanic greenstone of Northwestern, Quebec. This belt hosts several world class deposits that have produced both gold and base metals.
In February 2010 the Company entered into an option to acquire 100% interest in 3,040 ha. (23 contiguous mineral claims), known as the Lumby/Bufo property located approximately 35 km. northeast of the town of Atikokan and adjoining on strike to the north-northeast with the Osisko Mining Corp. (former Brett Resources Inc.) “Hammond Reef” gold deposit.
Belmont (50/50) with International Montoro Resources Inc. has acquired and explored two significant uranium properties (Crackingstone -982 ha & Orbit Lake – 11,109 ha) in the Uranium City District in Northern Saskatchewan. The Company also holds interests (50/50 with Int. Montoro Res.) in one rare earth mineral claim block in the Central Mineral Belt in Labrador.
Further information can be obtained from the Company website at www.BelmontResources.com and www.Sedar.com, or by phoning 604-683-6648.
ON BEHALF OF THE BOARD OF DIRECTORS
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. Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.