Pershing Gold Consolidating Relief Canyon Lands

LAKEWOOD, CO - Pershing Gold Corporation has acquired from Newmont USA Limited, the exclusive mining and surface use rights to approximately 1,600 acres of new long-term mining leases and 74 unpatented lode mining claims comprising approximately 1,300 acres. The purchase price paid to Newmont was US $6 million. This transaction also includes the acquisition of a new 20-year mining lease from New Nevada Lands, LLC, and New Nevada Resources, LLC.
These mining leases and claims cover lands located adjacent to Pershing's Relief Canyon Mine in Pershing County, Nevada. Pershing formerly held these lands and claims under a Minerals Lease and Sublease with Newmont. The transaction involved the conversion of a portion of the mineral sublease to new long-term mining leases that substantially upgrades Pershing's mining rights and surface use rights. The transaction consolidates Pershing's 100% owned Relief Canyon Mine with Newmont's mineral interests in adjacent properties. In addition, the deal reduces the potential royalty and terminates Newmont's back-in joint venture rights and other contract rights to the land.
The acquired lands and claims are adjacent to and near the Relief Canyon gold deposit, which is mainly located on mining claims owned by Pershing's wholly owned subsidiary, Gold Acquisition Corp. The Gold Acquisition Corp. mining claims are not affected by this deal.
The transaction gives Pershing increased control over ground adjacent to the Relief Canyon Mine that the Company believes is prospective. Pershing estimates that about 27% of its existing NI 43-101 resource estimate occurs on the lands acquired in this transaction. The Relief Canyon deposit is open and largely untested on the acquired lands west and south of the current open-pit mine. The Company believes that future exploration core drilling on these lands has significant potential to increase the size of the Relief Canyon gold deposit. In the transaction Pershing acquires surface rights to areas suitable for new and expanded mine support facilities, including waste rock storage areas.
As part of this transaction, Newmont and Pershing amended the 2006 Minerals Lease and Sublease, which now covers only the lands and claims. Pershing remains the lessee of the mining claims and the sublessee of the lands leased by Newmont under a new long-term mining lease. The amended Minerals Lease and Sublease establishes a new US $2.6 million exploration work commitment to be completed by the seventh anniversary of the effective date of the amendment. Pershing has already satisfied approximately US $2.4 million of this work commitment.
"With this transaction, Pershing paves the way to significantly expand the Relief Canyon Mine," stated Stephen D. Alfers, Pershing's Chairman and CEO. "Not only did we gain complete control of the gold discovered to date on the acquired lands, we know that the original Relief Canyon deposit extends into the acquired lands, and with additional drilling we expect to expand the gold resource on these lands." Alfers added, "Moreover, our new 20-year mining lease secures our mining rights well into the future and achieves control over where we can locate future mine facilities and optimize expanded mine plans. We appreciated working with Newmont and our new lessor, New Nevada Lands, in consummating this landmark deal and look forward to continuing to develop our strong working relationships with both companies."