Disposal of Golden Zone Project


 
TIDMHIF 
 
HIDEFIELD GOLD PLC 
 
                   DISPOSAL OF GOLDEN ZONE PROJECT 
 
Hidefield Gold plc ("Hidefield" or the "Company", HIF:AIM) is pleased 
to announce that following  completion of due  diligence work on  the 
Golden Zone  Project,  Alaska,  the Company  and  its  joint  venture 
partner Mines Trust  Inc. (the "Vendors")  have received notice  from 
Fire River Gold Corp.  ("FAU") (CNSX:FAU) of  its intention to  enter 
into a formal option agreement  (the "Option Agreement") under  which 
FAU will be entitled to acquire up  to a 100% interest in the  Golden 
Zone Project.   Hidefield holds  a 60%  interest in  the project  and 
Mines Trust Inc. holds the remaining 40% interest. 
 
Under the terms  of a  memorandum of understanding  (the "MOU")  with 
FAU, the Vendors  granted FAU certain  conditional rights to  acquire 
all of their respective  interests in the  Golden Zone Project.   FAU 
paid an initial  US$20,000 on signing  of the MOU  and an  additional 
US$30,000 will be  paid within seven  days of signing  of the  Option 
Agreement.  Further cash payments  of US$225,000 in  total are to  be 
paid to the Vendors over  a period of three years  and are due on  or 
before May 31, 2012.   All payments to the  Vendors are to be  shared 
pro rata  to their  respective  interests in  the Golden  Zone  joint 
venture. 
 
In addition to  the cash  payments referred to  above, following  the 
signing of  the Option  Agreement, FAU  will issue  the Vendors  with 
500,000 FAU common shares.  In addition FAU shares, with an aggregate 
value of US$1,300,000, are  to be issued to  the Vendors over a  four 
year period up to May 31, 2013. 
 
FAU must also undertake a  total of US$2,500,000 in work  expenditure 
by 31 December 2014 with a minimum annual commitment of US$250,000. 
 
Upon FAU  having  completed cumulative  exploration  expenditures  of 
US$1,000,000, made cumulative cash payments of US$200,000 and  issued 
the initial  tranche  of 500,000  FAU  common shares  and  additional 
US$650,000 FAU common shares, then FAU will be deemed to have  earned 
a 51% interest in the Golden Zone Project. 
 
Following the payment of all cash payments, the completion of all FAU 
shares issues and cumulative exploration expenditure to the value  of 
US$2,500,000, FAU's interest in the Golden Zone Project will rise  to 
a 100% interest which will be  subject to a 2.5% Net Smelter  Royalty 
("NSR").  Under the terms of the Option Agreement FAU can acquire  1% 
of  this  royalty  for  US$1,000,000  leaving  the  Vendors  with  an 
aggregate 1.5% NSR. 
 
Hidefield intends to use the  proceeds from the foregoing option  for 
general corporate purposes.   At this  time, Hidefield  has no  plans 
regarding the retention or  disposal of any FAU  shares which may  be 
acquired under the foregoing option. 
 
GOLDEN ZONE PROJECT 
 
The Golden Zone Project is located 240 km north of Anchorage,  Alaska 
on the south flank of the Alaska Range.  The project is accessible by 
road, and  is just  19  km from  the  Parks Highway,  which  connects 
Fairbanks and  Anchorage.   A  fully self  contained  camp  and  work 
facility is on site. 
 
The  project   contains  a   measured  and   indicated  resource   of 
approximately 253,000 ounces of gold, 1,180,000 ounces of silver  and 
6,114,000 pounds of copper.  A  technical report prepared by  Norwest 
Corporation in May, 2005 is available on the Hidefield website.   FAU 
has  indicated  it  intends  to   confirm  the  stated  resource   in 
preparation for  an  updated  National  Instrument  43-101  compliant 
technical report later in 2009. 
 
ABOUT HIDEFIELD 
 
Hidefield is  a gold  company with  a focus  on the  acquisition  and 
development  of  highly  prospective  projects  in  North  and  South 
America.  The Company has a  diverse portfolio of projects, those  of 
which in  South America  are directly  held as  are the  projects  in 
Alaska, while  those  in  Canada,  Nevada and  Arizona  are  held  in 
independent, self-funded associate companies. 
 
Hidefield's substantial direct gold project interests are principally 
in Argentina where  the Company  is actively  exploring the  advanced 
stage Don Nicolas gold project in Santa Cruz Province.  In Brazil the 
Company is focused on the evaluation of the advanced stage Cata Preta 
gold project near the historic city  of Ouro Preto in the  productive 
Quadrilatero Ferrifero region of Minas Gerais state. 
 
For more information on Hidefield go to www.hidefieldgold.com 
 
Enquiries: 
 
Hidefield Gold Plc 
Ken Judge, Chairman 
+ 44 773 300 1002 
Investor Relations 
Jon Bey: North America 
+ 1 800 689 2599 
 
Hanson Westhouse Limited 
Tim Feather / Matthew Johnson 
+ 44 113 246 2610 
 
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This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.
Hidefield Gold (LSE:HIF)
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