Committee Bay regaining full ownership of project

Vancouver – A deal has been struck whereby Committee Bay Resources (CBR-V) will reacquire Gold Fields’ (GFI-N) 55% interest in the Committee Bay project located about 300 km northeast of Baker Lake in the Melville Peninsula region of Nunavut.

The agreement will have Committee Bay Resources issuing 7 million shares, at a deemed price of $1.25 apiece, to Gold Fields Exploration for its interest in the joint venture.

Within two years or upon Committee Bay incurring $10 million in project expenditures, Gold Fields will have a one-time right to forego the share conversion and maintain its 55% interest. To do so the major must commit to fund exploration and development equivalent to 150% of Committee Bay’s incurred expenditures.

Gold Fields earned its 55% interest in the project by funding over $7.5 million in exploration expenditures since mid-2003.

Edmonton-based Committee Bay has commenced its 2005 drill program on the namesake project and has allocated $8 million to this year’s program.

Gold mineralization in the Committee Bay greenstone belt occurs in iron formations and mafic-ultramafic volcanic sequences.