Meritus Minerals LTD is pleased to
announce that it has executed an option agreement with two Mongolian companies
that provides finance for the development of the high grade Gutain Davaa gold
project in Mongolia.

The agreement requires the Mongolian
partner to provide all finance to advance the Gutain Davaa project into
production at their sole risk and to manage the project. Within twelve months
from the date of first production they are required to subscribe US$4,000,000
to Gutain Davaa LLC, Meritus’ wholly-owned subsidiary that holds the license,
for a 51% interest in that company. The first tranche for US$150,000 has been
paid and the second is due in early June. The residual US$3,700,000 to be paid
after commencement of production shall be made from eighty percent of the net
revenue from production after the deduction of allowable costs.

For each complete one million
dollars subscribed the Mongolian partners will be issued 12.75% of the share
capital in Gutain Davaa LLC. Should they not complete the subscription in the
twelve month time frame Meritus may, at its option, terminate the agreement in
which case the Mongolian partners will receive shares for each complete one
million dollar subscribed.

Once subscription is completed
Meritus and two partners will operate under a shareholders agreement with
Gutain Davaa LLC being held 51% by our Mongolian partners and 49% by Meritus.

Source: AccessWire