Comfort Letter Received for Coal Permit Applications
Vancouver, British Columbia CANADA, May 28, 2008 /FSC/ - Saturn Minerals Inc. (SMI - TSX Venture), are pleased to announce that a ?Letter of Comfort? has been received from the Saskatchewan Ministry of Energy and Resources in regard to coal permit applications submitted on behalf of the Companies.
Further to news releases issued by Saturn and Swift on May 1, 2008, the Companies wish to update their activities in the area of Goldsource Mines Inc. recent coal discovery in East-Central Saskatchewan.
Area & Location Applied For
Between April 28th and May 2nd the Companies submitted 165 coal permit applications totalling 125,952 hectares (1,259.52 sq. km.). The location of the coal permit applications are adjacent to, partially surrounding, and in proximity to the coal discovery made by Goldsource Mines Inc (Goldsource Mines Inc. news releases, April 22 and 28). The area of Saturn and Swift?s applications were selected to coincide with mapped subcrop of the Mannville Group sediments at shallow depth, relatively thin overburden of Quaternary deposits, structurally-controlled potentially sub-basin forming geological features, and road and/or railroad access.
In addition to the above noted applications, Saturn & Swift also wish to announce that based on an assessment of the area by geological personnel additional applications were submitted on May 14th and 15th covering a total of 50,444 hectares in east central Saskatchewan. These applications are still in the regulatory process and no ?Comfort Letter? has yet been received by Saturn and Swift for these applications.
Status of Applications
The ?Comfort Letter? received from the Saskatchewan Ministry of Energy and Resources pertains to the applications submitted on behalf of Saturn and Swift between April 28th and May 2nd. The ?Comfort Letter? includes a list of dispositions applied for, the dates of the submissions, land description, boundary plan, affirmation of fee payment and first year rent, the allocated Coal Prospecting Permit (CPP) numbers, and if the submission has priority over other applications.
The ?Comfort Letter? confirms that a majority of permits applied for are ?first in line? and will be given priority sequence.
The final granting of the coal permits is dependent upon government regulatory approval and time required to process the applications, which is at the discretion of the Government of Saskatchewan. Granting of coal permits is subject to a final review of ?each application indicating the nature of the work and money to be expended?. The ?Comfort Letter? is not a guarantee that all or any of the permits will be issued to the Companies, only that the Companies are first in line for the permits.
Joint Venture
Saturn and Swift will hold any permits granted on the basis of their financial contributions to acquire the project, being 60% Saturn and 40% Swift, and will enter into a joint venture agreement for the further exploration and development of the project. The joint venture agreement will define the relationship between the companies, including the appointment of Saturn as the operator of the project, and will provide for each company to contribute its proportionate share of costs, or face the dilution of its interest for not contributing. Any non-contributing company?s interest which is reduced to 10% or less, will be automatically converted to a 5% net profits royalty in the project.?
Planned Exploration
Dr. Krzysztof Mastalerz, P.Geo, Qualified Person for Saturn and Swift, as defined by NI 43-101, is currently coordinating research of the Lower Cretaceous sedimentary basin development in east-central Saskatchewan, in regards to the Mannville Group which hosts the discovery reported by Goldsource Mines Inc. Subject to final permitting and in sequential order the Companies are scheduling a preliminary exploration program for the summer field season.
The Companies will provide additional information when it becomes available.
SATURN MINERALS INC. SWIFT RESOURCES INC.
?Mike Elson? ?Mike Elson?
President President
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Source: Saturn Minerals Inc. (TSX-V SMI) http://www.saturnminerals.com
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