Vancouver B.C.: TNR Gold Corp. ("TNR" or the "Company") and wholly-owned International Lithium Corp. ("ILC") are pleased to provide the following review of the significant events and corporate targets realized by the Company during 2009. These milestones were accomplished during a challenging global economic crisis due to the combined dedication of our management team, directors and shareholders.
The Company anticipates 2010 to be an exciting year starting with the planned spinoff and public listing of a new Rare Metals public company, International Lithium Corp. ("ILC") a wholly owned subsidiary of TNR, and the continued advancement of our high quality projects in TNR Gold.
DEAR SHAREHOLDERS AND INTERESTED PARTIES
As we all experienced firsthand, 2009 was filled with challenges in the wake of the worldwide economic crisis. It was a year of extremes for many companies, however due to the Company's resiliency and adaptability we can proudly state that the Company is in a stronger fiscal position and has emerged as a leader in the exploration for lithium and other rare metals.
From a financial perspective, the Company has achieved a major accomplishment by converting a working capital deficit of $1.3 million in early 2009, to a surplus of $2.6 million by year end. In conjunction with the financial restructuring, the Company identified a burgeoning Rare Metals sector, built a specialized team and acquired high quality projects at a low cost before the intense level of competition observed today.
It is anticipated that with the worldwide focus on electric vehicles powered by Lithium-ion batteries and the concentrated control of lithium carbonate resources, lithium and other rare metals will become increasingly familiar in the commodities market. ILC presents an opportunity for TNR shareholders to participate in this growing commodity sector without further investment and to capitalize on this commodity focused company.
All the above would not have been possible without our talented team's commitment and our Board's vision of a technologically greener future.
Mines are inherently difficult to find. Most textbooks put the odds at 1 project advancing to become a mine for every 5,000 exploration projects that are initiated. Given these statistics, members of our management team at TNR Gold have beaten the odds and have been involved in the identification and acquisition of 2 properties developing into significant deposits. These include the Snap Lake mine which De Beers purchased in 2000 for $305 million and the Los Azules copper project, currently reporting a National Instrument 43-101 compliant Inferred Resource of 11.2 billion pounds of copper and advancing towards pre-feasibility.
These were accomplished through the successful application of our proven project generation business model where the Company focuses on the early stages of an exploration project's life cycle; thereby maximizing shareholder value by developing a large portfolio of high-potential early-stage projects and managing costs and risks by establishing strategic joint ventures while maintaining 100% interest on select properties.
Looking to the future beyond our past successes, we have several exciting projects within the portfolio that we believe have the potential to be the next major projects in the industry.
INTERNATIONAL LITHIUM CORP. -- EMERGING RARE METALS LEADER
Whereas most saw insurmountable challenges in 2009, International Lithium Corp recognized opportunities and stayed ahead of the curve by aggressively acquiring significant assets in both lithium brines and rare metals pegmatites in Argentina, USA, Canada and Ireland. ILC is currently the 100%-owned subsidiary of TNR Gold Corp with a targeted public spinout date of late first quarter 2010. The plan of arrangement will unlock the value hidden within TNR whereby shareholders of record will benefit fully by a unit distribution in ILC and exposure to the upside potential of a dedicated rare metals company. The following summarizes our current asset portfolio, past year accomplishments and plans for the future:
Mariana Project -- Argentina: ILC's focus lies in the 120 square kilometre 100% held Mariana lithium brine project. Within proximity to major producers of lithium carbonate (FMC and SQM), Mariana has all the key characteristics of a potential producer. ILC has completed initial sampling and hydrogeology, is producing a NI43-101 technical report and is in preparation for the initial exploratory drill phase. Should all the factors prove to be favourable and the project advances accordingly a mineral resource can be estimated and a feasibility study completed in approximately 2 years.
Nevada Projects: With three projects surrounding Clayton Valley, the only producing lithium brine operation in North America, ILC is well positioned toaggressively advance its presence and projects in Nevada during 2010 andbecome a project consolidator for end users seeking a potential resource right at home. The Fish Lake, Mud Lake and Sarcobatus Flats projects exhibit many close similarities and represent under-explored early stage analogues to Clayton Valley.
Ontario Projects: - ILC's pegmatite rare metals sampling programs this past summer in Ontario have confirmed high grade Lithium and Tantalum values, renewing our confidence that the hard rock rare metals component of the ILC portfolio rivals the lithium brine projects for potential. The Mavis Lake project, ideally located 15 km northeast of Dryden, demonstrated strong and widespread rare metals (lithium, tantalum, rubidium and cesium) mineralization. In addition, a highly evolved lithium-tantalum zonation was identified which is similar to the producing Tanco mine and represents a significant and underexplored exploration target. The Mavis Lake project is emerging as a premier multi-element rare metals project and warrants a major exploration program in 2010.
Moose Project -- NWT: A past high grade Lithium and Tantalum producer returned corroborating evidence of the highly evolved and differentiated nature of the pegmatites. Significant potential exists for delineation and extension of the known pegmatites since either Moose 1 or 2 have witnessed a very shallow and limited amount of drilling. In addition to confirming and expanding historic resources ILC aims to further explore the property for other lithium and tantalum enriched pegmatite dykes yet to be discovered.
Blackstairs Project -- Ireland: Encompassing 292 square kilometres and consisting of 19 historic underexplored multi-element rare metals pegmatites, the Blackstairs project represents another successful employment of TNR's business model. ILC plans an exploration program to confirm earlier high grade drill results, systematically evaluate all the pegmatite bodies for the full suite of potential minerals and follow up results and recommendations from earlier reconnaissance programs.
International Lithium Corp.'s goal is to build a diversified balanced portfolio of Rare Metals projects to meet the needs of the world's shift to green energy. This will be accomplished through rapid advancement of its main projects, cost and risk management employing a joint venture business model for the remaining projects and securing strategic partnerships with Lithium and other Rare Metals end users.
TNR GOLD CORP. -- LEAD PROJECT GENERATOR
After the spinoff of International Lithium, TNR intends on delivering additional shareholder value through continuing to advance the numerous copper and gold projects in Argentina and Alaska, identifying commodity trends early on, strategically building a portfolio of highly prospective properties and securing joint venture partners to develop projects into tomorrow's resources and mines.
Big Beaverhouse Project -- Ontario: During 2009, TNR acquired, by staking the Big Beaverhouse carbonatite complex located 450 kilometres north of Thunder Bay, Ontario. The property is one of the largest carbonatites complexes in the province of Ontario measuring six kilometres in diameter and a surface area of approximately 16 square kilometres.
By acquiring the Big Beaverhouse project, TNR has diversified its exploration portfolio to include Rare-Earth Elements targets. Rare-Earth Elements are in high demand as a result of the rapid advancement in technology, including green power generation, nanotechnologies and hybrid and electric cars. As prominent newsletter writers have pointed out, high tech applications require massive amounts of Rare Earth Elements, yet there are only a handful of resources outside China where 90% of Rare Earth Elements are produced. The Company is strategically moving into this new market of high-value strategic commodities to help meet the needs of consumers resulting from unprecedented growth in high-tech industries.
Shotgun Project -- Alaska: Is receiving increased attention with gold hitting new highs. The project is currently a 50-50 joint venture with Nova Gold and several experts have confirmed that Shotgun is strongly analogous to the Donlin Creek deposit.
Iliamna Project -- Alaska: Is 50 km away from one of the biggest deposits in the area, Pebble, and has all the similar characteristics to the mammoth deposit. Early IP work from Northern Dynasty in the area is encouraging and warrants follow-up in 2010.
The combined Alaskan gold projects represent a very attractive package that may form the basis of a future strategic initiative to provide TNR shareholders with added value in alignment with the Company's commitment and business model.
Los Azules Project -- Argentina: TNR retains a conditional 25 per-cent back-in right to certain of the properties which is currently the subject of a legal dispute, with a court date set for the fall of 2010. The Los Azules project is an advanced copper project heading towards pre-feasibility. We are confident in the viability of the project and fully intend to exercise our back-in at the appropriate time.
El Salto Project -- Argentina: This 3,300 hectare, 100% owned property is located in an area that appears to be one of a series of porphyry Cu-Mo systems known as the "Yellow Belt" in San Juan Province. Previous work delineated a large chargeability anomaly (6 x 1.5 kilometres) tested by only 12 wide spaced drill holes; one of which returned 55 metres of 0.21% Cu and 0.012% Mo. Significant exploration potential remains.
El Tapau Project -- Argentina: TNR maintains an option to acquire a 70% interest in El Tapau that uniquely exhibits 3 distinct target styles of mineralization including high grade gold, high grade copper-gold and low grade copper-gold porphyry. Initial reconnaissance reported a remarkable 2.2 g/t Au average from 157 grab samples over 4.5km long area. Very limited drill coverage consisting of 7 holes returned a significant intersection of 82 metres grading 0.49% Cu. Follow up consisting of geological modeling and additional drilling is highly recommended due to the potential of the property to host a significant deposit.
La Ortiguita Project -- Argentina: is located in San Juan Province within close proximity to the new Pascua Lama Baldidero Gold Mine. Exploration conducted thus far has targeted a porphyry copper-gold/epithermal gold system and has found an arcuate band of silicification approximately 300 to 400 m wide and extending over 1.5 km in length, associated with an approximately 50 m wide shear zone. La Mancha Resources Inc. has an option to acquire a 75% undivided interest in the La Ortiguita project and is required to spend $800,000 in exploration expenditures on the property in 2010 and an additional $800,000 in 2011.
Batidero and Northern Projects -- Argentina: Our joint venture partner, NGEX Resources Inc. along with partner JOGMEC are, incurring expenses on the properties with the intention of attracting major investors to move the projects forward.
Argentina continues to be a strong point for TNR, with an advanced copper project heading towards pre-feasibility and large copper-gold porphyry systems that has a sizable blue-sky potential. 2010 will be a year when more of TNR's Argentinean assets will be rationalized and advanced through joint venture partners.
We are truly appreciative of all our shareholder's support and look forward to sharing more of our successes with you in 2010.
ABOUT TNR GOLD / INTERNATIONAL LITHIUM CORP
TNR is a diversified metals exploration company focused on exploring existing properties and identifying new prospective projects globally. TNR has a portfolio of 18 active projects, of which 9 will be included in the proposed spin-off of International Lithium Corp.
It is anticipated that TNR shareholders of record will receive up to one share and one full tradable warrant of International Lithium Corp. for every 4 shares of TNR held as of the yet determined record date. This will result in TNR shareholders owning shares in both TNR and International Lithium. For further details of the spin-off please refer to TNR's April 27, 2009 news release or visit http://www.internationallithium.com
The recent acquisition of lithium, other rare metals and rare-earth elements projects in Argentina, Canada, USA and Ireland confirms the company's commitment to generating projects, diversifying its markets, and building shareholder value.
On behalf of the board,