Belvedere signs Agreement with Pyhäsalmi Mine Oy

Posted on Tuesday June 20, 2006

Belvedere is pleased to announce the signing of an earn-in agreement on their Arkala zinc copper property in central Finland with Pyhäsalmi Mine Oy (PMOY), a wholly owned subsidiary of Inmet Mining Corporation of Canada. PMOY owns and operates the nearby Pyhäsalmi Mine, with remaining reserves and resources of 15.6 Mt averaging 2.5% zinc and 1.2% copper, having an expected life of mine to 2016*.

The Arkala property is approximately 11 square kilometres in size and occupies an eight kilometre strike length of the prospective Mullikkoräme Horizon, which hosted the Mullikkoräme mine, a high grade satellite mine to Pyhäsalmi mine. Total production was 1.13 Mt averaging 6.1 % zinc, 0.3 % copper, 0.9% lead, 45g/t silver and 1 g/t gold*. The Arkala property contains numerous occurrences of disseminated zinc and copper mineralization in heavily altered felsic volcanics intersected in drillholes and bedrock sampling by Belvedere along two main horizons over a strike length of several kilometres. Several high priority undrilled geophysical conductors are associated with these horizons.

Under the terms of the agreement, PMOY will earn 75% of the property through aggregate expenditures of €300,000 by the end of 2008. Thereafter the parties can contribute pro-rata to the project or dilute to a 1% NSR if either parties interest falls below 10%. Should PMOY fail to complete the earn-in over the agreed time the property will revert to Belvedere. A pre-existing royalty agreement with PMOY will terminate upon them earning 75% of the property but will remain in force should PMOY relinquish the property to Belvedere.

*Reserves and production figures quoted above are extracts from Pyhäsalmi Mine Oy’s production reports and life of mine forecast.

This statement is prepared by Dr. Toby Strauss, a person qualified under the terms of National Instrument 43-101.

BELVEDERE RESOURCES LTD. David Pym, CEO
For further information, please contact:
David Pym: +358-9-25166334
Steve Cuthill: +1-604-408-0550

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