Salmon River Resources Ltd announced that it has entered into a loan agreement with Rigdon Limited pursuant to which Rigdon has agreed to lend the Company USD 2,000,000 (the "Loan"). The Loan will be unsecured, mature six months from utilization and bear interest at a rate equal to LIBOR plus 9.0% per annum.

Pursuant to the Loan Agreement, the Company has granted Rigdon an option to enter into an off-take agreement with the Company pursuant to which Rigdon shall have priority rights to purchase up to 1,000,000 tonnes per annum of iron ore mined from the Treppo Grande's principal tenements, namely EL77/1209 and EL77/1208, on market terms, for a 10 year period (the "Off-Take").

For a period of two months from the date of the Loan Agreement, Salmon River has agreed not to enter into any new negotiations with third parties in conflict or competition with any proposal under discussion with Rigdon or its affiliates. Such negotiations will be subject to strict confidentiality and Salmon River expects to provide further information and updates in the near future.