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The Tulsequah Chief Mine Development Project

Wednesday, September 19th, 2007

Redcorp Ventures Ltd and Redfern Resources Ltd, its wholly-owned subsidiary, (together the “Company”), are pleased to announce that Redfern has entered into an Option to Purchase Agreement with Carmacks Commercial Corp. of Moses Lake, WA, USA. The Agreement outlines the terms to purchase eight generator sets and associated ancillary equipment required to supply the Company’s Tulsequah Chief Mine with power.
Under the terms of the Agreement Carmacks agrees to sell to Redfern eight 1.6 MW generator sets and various ancillary equipment inclusive of shipment and delivery to the port of Juneau, Alaska. A deposit of US $2.1 million was paid upon signing of the Agreement. The equipment is part of a standby power generating installation that is no longer required and as a result the equipment is in substantially ‘as new” condition. The vendor has agreed to store the units until such time as they are needed and the purchase is finalized in the first quarter of 2008. Redfern is currently discussing terms with prospective leasing finance groups to complete the purchase as a capital lease, as contemplated in the project Feasibility Study.
“We were delighted to secure the opportunity to acquire these units in such good condition” said Richard Goodwin, VP Mining for the Company. “This purchase will reduce the capital requirement of the project, but more importantly will help us to preserve our schedule by avoiding a manufacturing delay for one of the key items of the project. This purchase also gives us the opportunity to use the gensets during construction, saving us the cost of rental units.”
Redfern has nearly completed the first phase of road construction consisting of a four kilometre section of road from the barge landing site to the Big Bull Mine, a secondary deposit with defined mineral resources under active exploration. The company is anticipating receipt of additional permits covering the next phase of interim road construction, northward to the Tulsequah Chief Mine site. Further equipment has been marshalled to the Taku River by barge and is scheduled for delivery to site over the next several weeks.

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