VANCOUVER, B.C., Nov. 9, 2006 (PRIMEZONE) -- Network Exploration Ltd. (the "Company") (TSX-V:NETH) (Other OTC:NETYF) today announced that further to its Memorandum of Understanding reported July 12, 2006 and subject to regulatory approval, the Company has signed the formal agreement to option a 50% interest in the Caldera Property through its newly formed Chilean subsidiary.
Consistent with the MOU, under the terms of the agreement the Company will earn a 50% interest with USD340,000 in property payments and USD1,050,000 in exploration expenditures over the next four years. Upon earning its 50% interest, the Company will form a Joint Venture corporation 50% owned by Network Exploration and 50% owned by the sellers for the purpose of future mineral exploration on the property. The future joint venture agreement outlines a management team in favor of Network Exploration and right of first refusal and buy/sell clauses permitting the Company to acquire additional interests in 10% increments at a future date.
The Caldera Property, covering an area of 2,700 hectares, is located in the mineral-rich Huasco province of Chile and had been previously optioned to Noranda Chile in 1992 to 1995. Having the characteristics of a gold and copper porphyry, Noranda explored the property with a drill program which included nine shallow drill holes with a vertical depth estimated at not more than 80 meters.
This acquisition succeeds our comprehensive due diligence program which included a review of available results from Noranda's exploration programs and further sampling of the property. During this process, the Company was able to locate some of the previous drill cores from Noranda's 1994-1995 exploration programs and Mr. Peter Folk P. Geol obtained additional assays from the previous trench work at the property. The assay results (reported Oct 31 with results ranging to 0.46% Cu), the core inspection, and careful review of the sample data have provided valuable insight into the porphyry style geology of the Caldera system. Mr. Peter Folk has been commissioned to prepare a 43-101 report for the property to present to the TSX Venture Exchange.
"We are very excited to have the opportunity to inspect Noranda's previous drill cores," states Mr. Richard Schnoor, Director of International Operations. "This will significantly assist us in the planning of our exploration program. From our initial inspection, a number of the drill cores show significant sulphide materials with chalcopyrite which appear to be open at depth."
Based on historical occurrences of gold and copper deposits in similar geological settings within the Andes Mountains, the Company is confident that there exists a strong potential that the Caldera property hosts a series of economic gold and/or copper ore bodies and the Company will endeavor to determine the grade of the copper porphyry through its upcoming exploration programs.
Network Exploration Ltd. is a mineral exploration Company committed to building shareholder value through the acquisition of base and precious metal properties in North and South America. For additional information, contact the company at 604 495-6302 or visit the Company's website: www.networkexploration.com.
ON BEHALF OF THE BOARD OF DIRECTORS "Alexander Helmel" President
THE TSX VENTURE EXCHANGE HAS NOT YET REVIEWED AND DOES NOT TAKE RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE. This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the British Columbia Securities Commission and the United States Securities & Exchange Commission.