Rose Petroleum plc

Lease Agreement signed on Yuma King Copper Project, Arizona


Lease Agreement signed on Yuma King Copper Project, Arizona

Further to the Company's announcement on 22nd September 2008, AVEN Associates LLC, a wholly owned subsidiary of VANE Minerals plc., has signed a Lease Agreement ("Agreement") with Merrill Palmer, the owner of the Yuma King copper-molybdenum prospect ("Property").

The Yuma King Mine, historically the primary prospect on the Property, has historic production of 8,709 tons of copper ore, producing 461,686 lbs of copper (Keith, 2003). The Property consists of 320 federal lode mining claims, covering approximately 6,400 acres, located in La Paz County, west-central Arizona.

Historical Data

Past exploration on the property consists of detailed mapping and sampling of both surface and extensive underground workings, ground and airborne magnetic surveys and the drilling of 19 surface diamond drill holes. This work has outlined a potential copper oxide resource and intersected porphyry style copper-molybdenum alteration and mineralization in several of the deeper drill holes.

The former lessee terminated its agreement with Merrill Palmer in July 2008. A NI43-101-complaint Technical Report dated 7 November 2005 was prepared by the former lessee, albeit before the 19 surface holes were drilled. VANE is currently examining the NI 43-101 report to determine its accuracy and completeness in light of the additional holes drilled.

Agreement terms

The Agreement calls for escalating annual advanced royalty payments starting at US$20,000 on signing and increasing to a maximum of US$100,000 in year 5 with a 2.5% Net Smelter Royalty ("NSR") on production. The 2.5% NSR royalty can be reduced to 1.5% by making a payment of US$2,000,000.

Commenting today Steve Van Nort, CEO of VANE Minerals, said:

"We are pleased that the full Lease Agreement has now been finalized. We look forward to conducting additional work on the project including mapping and drilling to fully evaluate the copper oxide potential as indicated in the NI 43-101 report and further evaluate the potential for a copper/moly porphyry deposit. "