October 5, 2006
Raymond, Alberta. American Creek Resources Ltd. (TSX-V:AMK) and Serengeti Resources Inc. (TSX-V:SIR) are pleased to announce that they have signed a binding Letter of Intent (“LOI”) under which American Creek will purchase Serengeti’s right to earn a 51% interest in the Tide Project from Rimfire Minerals Corporation. Upon completion of the earn-in, Rimfire will hold the remaining 49% interest, and Serengeti will retain a 1% NSR on American Creek’s interest.
Pursuant to the LOI, American Creek will pay $75,000 and issue 354,000 of its common shares to Serengeti, and will assume Serengeti’s responsibilities under an agreement dated November 20, 2003, between Serengeti and Rimfire, including a $40,000 cash payment to Rimfire. In addition, American Creek will expend an aggregate of approximately $585,000 on the Tide Project by the end of 2007, including a repayment to Serengeti of up to $100,000 for the fall 2006 exploration program conducted and funded by Serengeti. Serengeti’s remaining obligations are to issue 75,000 of its common shares to Rimfire and 25,000 of its common shares to an underlying vendor. This transaction is expected to close October 27, 2006 and is subject to regulatory approval and a review by American Creek of the underlying property agreements.
The Tide Project consists of the Tide 1 – 4 Claims (29.6 sq. km.) located approximately 36 km. north of Stewart, British Columbia. The Tide Project is contiguous with American Creek’s Electrum Project. Recent work on the Tide Project has focused on a bulk-tonnage gold target at the 36 Zone, where drilling in 2004 and 2005 intersected wide intervals of gold mineralization including 129.4 metres averaging 1.0 g/t gold. A copy of the NI 43-101 Summary Report on the Tide Project dated March 1, 2006 may be viewed on SEDAR at www.sedar.com (Rimfire Minerals Corporation, Technical Report filed May 12, 2006).
American Creek Resources Ltd. is a Canadian mineral exploration company focused on the acquisition, exploration and development of gold and silver deposits, with 8 projects in British Columbia, Canada. The Corporation is currently conducting a Phase II exploration program on the Electrum gold-silver project.
Serengeti Resources Inc. is a mineral exploration company focused on the discovery of copper, gold and molybdenum deposits in British Columbia, especially in the highly prospective Quesnel Trough. Serengeti intends to use the proceeds from this transaction and funds received from recent warrant exercise to follow up encouraging results recently announced at its Kwanika copper-gold project located 85 km north of Mt. Milligan (See NR September 20, 2006).
For further information, please contact:
American Creek Resources Ltd.
Darren R. Blaney, COO, 403-752-4040
Serengeti Resources Inc.
David W. Moore, President and CEO, 604-605-1300
Investor Relations, 604-288-2850