| ||Tue May 27, 2008|
Asia Now Establishes a Strategic Alliance with a Hong Kong Listed Mining Company
| ||Asia Now Resources Corp. ("Asia Now") (TSXV: NOW) is pleased to announce that it has reached a memorandum of understanding to establish a strategic partnership with Xian Yuen Titanium Resources Holdings Limited ("Xian Yuen", HKEX: 0353), a public resource company listed on the Hong Kong Stock Exchange, on the cooperation of exploration and mining development in China. |
Under this memorandum of understanding, a strategic alliance will be formed through a share swap between Xian Yuen and Asia Now, subject to the approval of the TSX Venture Exchange. Under the terms of the share swap, Xian Yuen will issue 75,000,000 of its shares to Asia Now, and Asia Now will issue 3,000,000 shares to Xian Yuen. All of the new shares from both Xian Yuan and Asia Now will be subject to a lock up period of 6 months.
In addition, Asia Now will provide technical consulting services to Xian Yuen on its iron-titanium project in north China. Compensation for the consulting services will be paid in the form of 75,000,000 Xian Yuen's shares to be issued in three years, of which 25,000,000 will be free-trading shares to be issued when the formal consulting contract is signed. Asia Now may also recommend new projects to Xian Yuen, for which a separate cooperative agreement will be negotiated.
Capital Gain Investments Holdings Limited has been acting as agent for this transaction, and will receive 5% of the total shares that Xian Yuen issues to Asia Now.
"We are pleased about the strategic partnership with Xian Yuen," said Asia Now President, Dr. Kaihui Yang. "As a result, Asia Now will be exposed to the Hong Kong market. Furthermore, with its professional team, Asia Now will now be able to work on more projects in addition to its existing projects in China."
About Xian Yuen Titanium Resources:
Xian Yuen is engaged in exploring mineral resources containing iron, vanadium and titanium deposits in the Titanium Mine in Inner Mongolia of China. The Titanium Mine has an indicated resource of 16.2 million tonnes at 19.46% TFe (total iron), 3.86% TiO2 and 0.03% V2O5 using a 15% TFe cut-off grade in an area of 0.7 square kilometres, as shown in an NI 43-101 report entitled as "An Independent Technical Assessment on the Little Red Mountain Iron-Titanium-Vanadium deposit, Xiao Hong Shan, People's Republic of China for Aurora Global Investment Holdings Limited", which was completed by Velasquez Spring and Robert S. Didur of Watts, Griffis and McQuat Limited on October 15, 2007. In addition, the NI 43-101 report also indicated significant potential for increasing the reserves in the area and surround. On the day this memorandum of understanding was signed, Xian Yuen bought 51% of the exploration rights of a two square kilometre area surrounding the Titanium Mine so it can be developed as an open pit mine.
About Asia Now Resources:
Asia Now Resources Corp. is a mineral exploration company active in China since 2002. The Company has established offices, joint ventures and a significant network with Chinese partners. Current projects include copper, gold and silver at three major projects, with drilling underway at two of these. Under the leadership of an experienced management team, the Company is taking exploration into the next phase. For more information, please visit www.asianow.ca.
For further information contact:
Asia Now Resources Corp.
Kaihui Yang, President, or
Christina Wilton, Corporate Secretary
Peter Weichler / Jeff Walker
The Howard Group Inc.
Toll Free: 1-888-221-0915
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