Kohler, Wisconsin – February 19, 2008 – River Hills Resource Corporation (“River Hills” or the “Company”) announced today that it has signed an agreement with an effective date of February 14, 2008 (the “Agreement”) with a Chinese state-owned company, Shandong Geological Prospecting Institute of the China Chemical Geology and Mine Bureau (“Shandong”) for the exploration and advancement of the company’s El Salto and Mishkyloma projects. El Salto is a copper-molybdenum project and Mishkyloma is a copper-zinc project (the “Projects”). Both Projects are located in west-central Ecuador.
Under the terms of the Agreement, Shandong has the right to earn over a four-year period an undivided 70% interest in the Projects through earning an equity interest in the Company’s special purpose subsidiary that controls the projects by providing approximately $22 million to advance the phased exploration programs. The goals of the work covered by the agreement are to develop sufficient mineral reserve calculations and 3D modeling maps to initiate commercial development of each of the Projects through bankable feasibility studies that will allow the utilization of third party project financing.
The Projects are comprised of 7 separate mineral concessions. The Company controls five of the concessions. The El Salto project consisting of two concessions: the 5,000 hectare El Salto concession and the 3,700 hectare Pambacury Concession. The Company also controls the Mishkyloma projects core area being three concessions: Mishkyloma, Mishkyloma 1 and Mishkyloma 2 comprising a total area of 13,200 hectares. Two additional applications for area’s related to the Mishkyloma project consisting of approximately 1,500 hectares are pending before the appropriate governmental entities.
In signing the Agreement, Christopher Werner, Founder and CEO of the Company commented, “River Hills is most pleased with this exploration agreement with Shandong.” and noted that “China is one of the world’s major consumers of both base and precious metals.” He added, “we believe that this relationship will enable River Hills to proceed with the continued exploration of the projects in phases that may allow us to expeditiously move them into commercial development.”
River Hills is a British Columbia, Canadian registered company with management offices in Kohler, Wisconsin and Quito, Ecuador. River Hills has been involved in assembling and developing a portfolio of precious and base metal exploration projects located in Ecuador.
River Hills Resource
Corporation
P.O. Box 11117
Vancouver, B.C. V6E 4N7
Canada
River Hills Resource
Corporation
P.O. Box 216
Kohler, Wisconsin 53044
USA
Christopher Werner, CEO
(920) 803-9910 (Tel)
(920) 803-8136 (Fax)
cwerner@
riverhillsresource.com
Riverhills Resource S.A.
La Brujula E7-16 y Ultimas Noticias
Quito, Ecuador
Julian G. Rosero A.,
Senior Advisor & Project Manager
(593) 2-292-2909 (Tel)
(800) 930-9906 (Tel)
(593) 2-600-1064 (Fax)
jgroseroa@
riverhillsresource.com