May 6 2013
Citation Resources Inc. (the "Company") is pleased to announce the raising of $420,000 through the exercise of warrants prior to the expiration of all warrants on March 25, 2013. Citation has already satisfied its Biricu Project exploration expenditure requirements for calendar 2013 ($500,000) under its Option Agreement with Esperanza Resources Corp.
Citation has initiated the process for obtaining the environmental permits and required permissions for a drill program in the four target areas at the Bircu Project identified in the Company's news release dated January 29, 2013. Each of the four target areas contain the geophysical, geochemical and geological characteristics consistent with other discoveries in the area, including the neighboring Torex properties, Morelos and Media Luna, and Goldcorp's Los Filos.
The Company's board of directors has approved the granting of 600,000 incentive stock options to directors and officers of the Company in accordance with its stock option plan. The options are exercisable at $0.10 per share and have an expiry date of May 2, 2018.
Qualified Persons
The exploration program is being carried out under the direction of David M. Jones, technical consultant to the Company. David M. Jones has over 30 years' experience in mineral exploration and project management. As Chief Geologist of Teck's Nukay Project from 1994- 1999, Mr. Jones is credited with the discovery of the Goldcorp's Los Filos gold-skarn deposit, which is located 10 km from the Biricu Project and became Mexico's largest gold producer in 2010. Application of his model to other properties in the region dramatically expanded the conceptual extent of the Guerrero Gold Belt and led to the discoveries of El Limon and Los Guajes, also major gold-skarn deposits. Mr. Jones has published numerous technical articles and is considered to be the foremost expert on Guerrero Gold Belt type deposits. Mr. Jones has worked extensively throughout the Guerrero Gold Belt for clients including Teck, Wheaton River, Goldcorp, Peñoles, Grupo Mexico, Torex, and a number of other Canadian juniors.
The technical content of this news release has been reviewed by and has been verified by and is the responsibility of Richard Graham, P. Geol., who is a Qualified Person as defined in NI 43- 101.