The Company announces that it has entered into an agreement dated January 31, 2012 (the "Amending Agreement") that amends the terms of the Strategic Acquisition Agreement dated March 30, 2011 (the "Original Agreement") pursuant to which the Company agreed to acquire all of the issued and outstanding shares of Craigmont Holdings Ltd. (now Huldra Properties Inc. ("HP")) (the "Shares"). Pursuant to the terms of the Amending Agreement, the parties agreed to revise the time in which the Shareholders may recover magnetite from the Company's milling property and to extend and amend certain payment terms related to payment for the Shares.

Under the Original Agreement, Huldra was to pay $3 million on or prior to January 31, 2012 (the "Second Payment") and the remaining $4 million balance, less certain adjustments (the "Third Payment"), on or before January 31, 2013. Under the Amending Agreement, the Second Payment was split into two payments, of which $800,000 was paid by Huldra on January 31, 2012, and the remaining $2.2 million will be payable on the earlier of (i) the commissioning of Huldra's mill and (ii) June 30,2012. The Third Payment will also be split into two payments whereby:

1. on or prior to January 31, 2013, Huldra will pay the amount determined by subtracting from $4 million:
   1. the lesser of $900,000 or the amount of the Liability Cost Estimate (as defined in the Original Agreement, and
   2. any payments made by Huldra to the Shareholders derived from the gravel rights related to Huldra's milling property; and
2. on or prior to June 30, 2014, Huldra will pay to the former shareholders of HP a final adjustment payment to reflect site remediation undertaken by the shareholders prior to that date, less certain other adjustment items.

Consequential amendments were also made to other agreements made among the parties in connection with the closing of the Original Agreement. Copies of all such amending agreements will be made available by the Company on SEDAR at www.sedar.com.

About Huldra

Huldra is currently working on plans to put its Treasure Mountain property, located 3 hours east of Vancouver, BC, into development, subject to permitting and financing utilizing an offsite mill being constructed at the Company's property outside of Merritt, BC. The Company is also actively assessing other opportunities for acquisition and development.

On behalf of the Board of Directors

Ryan Sharp, MBA, President, CEO & Director