N E W S R E L E A S E October 31, 2006 -Saskatoon, Saskatchewan – Shane Resources Ltd. (SEI – TSX Venture)
The Company is pleased to announce that it has signed a letter of intent with Golden Band Resources Inc. (TSX Venture – GBN) whereby Golden Band will acquire Shane’s 24.5% interest in the Greywacke gold property in northern Saskatchewan. In order to conclude the agreement, Golden Band will issue to Shane 125,000 shares and make a cash payment of $50,000. A further 125,000 shares will be issued to Shane on the first anniversary of the agreement. Shane will retain a 1% Net Smelter Royalty in the property, which Golden Band can buy down to 0.5% by making a payment of $500,000 to Shane.
The Company is pleased to become a shareholder in Golden Band and retain a royalty in the property, as Golden Band has a management team with a proven record of developing gold deposits into mines.