Mr. Paul Dumas reports

BOWMORE SIGNS A LETTER OF INTENT TO ACQUIRE A 50% INTEREST IN THE AMHERST SILICA PROPERTY AND 100% OF POTENTIAL PRODUCTION OF HIGH GRADE SILICA

Bowmore Exploration Ltd. has signed a letter of intent to acquire 100 per cent of potential high-grade silica production and a 50-per-cent interest in the Amherst property located in the township of Amherst, Quebec, Canada, from a private company. The private company is presently operating a small-scale open-pit operation since 2006.

The property is composed of four claims covering approximately 212 hectares and is located approximately 150 kilometres northwest of Montreal, Que. The claims of the property overlap a permitted mining lease where historical production of silica and china clay has been continuing for the last 80 years. The company is preparing an initial drill program to corroborate the discovery of high-purity quartzite from drilling done by Laurentian Silica Mines Co. and Steetley Industries Ltd. between 1958 and 1981.

The transaction

Pursuant to the letter of intent between the private company and Bowmore Exploration, the company may acquire up to 100-per-cent interest in the production of high-grade silica and a 50-per-cent interest in the property, and will have the exclusive rights to explore and develop the property for the potential production of high-grade silica over the next four years in consideration of:

• Total cash payments of $200,000 to the vendors as follows:
  • $25,000 payable upon the signature of the formal option agreement;
  • $30,000 payable on the first anniversary date of the agreement;
  • $35,000 payable on the second anniversary date of the agreement;
  • $40,000 payable on the third anniversary date of the agreement;
  • $70,000 payable on the fourth anniversary date of the agreement.
• Total issuance of three million common shares of the company on or before the following dates:
  • 250,000 common shares at the signature of the formal agreement;
  • 350,000 common shares on the first anniversary date of the agreement;
  • 500,000 common shares on the second anniversary date of the agreement;
  • 800,000 common shares on the third anniversary date of the agreement;
  • 1.1 million common shares on the fourth anniversary date of the agreement.
• Incur expenditures in the aggregate amount of at least $1.5-million on or before the four-year anniversary date of the formal agreement.

At the end of this period, Bowmore will have acquired 100-per-cent exclusive interest in the production of high-grade silica and 50-per-cent interest in the property. The vendors will retain a sliding-scale gross production royalty between 2 per cent and 3.5 per cent, with a sliding-scale royalty on byproducts of 4 per cent and 7 per cent.

Paul Dumas, president of Bowmore, stated: "We are pleased with this opportunity to acquire the Amherst property. This allows the company to expand its strategic exploration portfolio into the high-grade silica market given the increase price attributed to lower supplies. This valuable commodity is highly sought after when the grades exceed 99.5 per cent purity. The company will be providing a more detailed technical update about the Amherst silica property in next couple of weeks along with an exploration update on its Duverny and Victoria Lake projects."

We seek Safe Harbor.