The 38 km2 Shoal Lake Project is comprised of two significant high grade gold deposits, Dupont and Cedar Island, containing National Instrument 43-101 ("NI 43-101") compliant mineral resource estimates (see Everton's July 9th, 2009 press release). The most significant option was granted by Halo Resources Ltd. ("Halo") in October 2008, pursuant to which Halo granted HLG the right to earn a 51% undivided interest in the Shoal Lake West property ("SLW") by incurring exploration expenditures of $1,500,000 by May 1st, 2010. The agreement is also subject to HLG making quarterly property payments of $60,000 for a three year period starting on November 1, 2009 and ending on October 31, 2012. HLG also has the right to earn an additional 24% undivided interest in the SLW property by incurring additional exploration expenditures of $3,500,000 by October 31, 2012, and by making a final payment to Halo of $6,000,000 before such date. Other options granted to HLG in the Shoal Lake East area call for payments totalling approximately $4,750,000 over the next three years in exchange for a 100% interest in the projects.

Andre Audet, President and Chief Executive Officer of Everton stated: "This transaction with HLG provides a compelling opportunity for Everton to participate in the development of advanced gold projects in the prospective Archean Greenstone Belt of north-western Ontario. What makes this deal interesting is that HLG has, for the first time, assembled this large land package to make the overall project viable through the use of a common road network, power grid, and milling complex. The Shoal Lake gold project holds two significant high grade gold deposits with in-situ NI 43-101 compliant indicated and inferred mineral resource estimates and 5 former gold producing mines. Everton believes that the Shoal Lake package of properties hosts a significant gold target with excellent potential to increase the estimated gold resources through additional exploration. Everton intends to fast track the development of the Shoal Lake gold project. We look forward to working with the local communities as well as the Ontario government to advance the development of the project and believe that Canada's political stability represents a strategic advantage for the asset."

Transaction Details

Everton has signed share purchase agreements with all of the shareholders of HLG thereby acquiring 100% of HLG's issued and outstanding shares. In total, Everton has acquired 32,432,400 HLG shares (the "HLG Shares") in exchange for 12,000,000 common shares of Everton (the "Everton Shares"), based on an exchange ratio of 0.37 of an Everton Share for 1 HLG Share (the "Exchange Ratio").