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16.10.2008
Xemplar Energy Provides Update On Otish Uranium Project Optioned To Santoy Resources


Xemplar Energy Provides Update On Otish Uranium Project Optioned To Santoy Resources

Vancouver, October 15, 2008 - Xemplar Energy Corp. (TSX-Venture: XE, Frankfurt: E7R; Namibian Exchange: XEM) (“Xemplar” and/or the “Company”) is pleased to provide an update on the Otish Uranium Project which was optioned to Santoy Resources Ltd. (TSX-Venture: SAN) (“Santoy”) announced on August 12th, 2008.

The Otish district is centred on the Proterozoic Otish sedimentary basin, which has similarities to Saskatchewan’s prolific Athabasca basin. The Quebec basin includes the high-grade Matoush deposit of Strateco Resources Inc. (indicated resources of 3.73 million pounds U3O8 and inferred resources of 13.07 million pounds U3O8), and the Seru “L” deposit where Abitex Resources Inc. has just began a large drilling campaign and is earning 50% from AREVA Canada Inc. and SOQUEM Inc. Abitex recently reported that the “L” deposit has a historic resource (not compliant with NI 43-101) of 385,000 tonnes grading 0.70% eU3O8 and containing 5.94 million pounds eU3O8. Other recent discoveries of note include the South Otish project of Cameco Corporation (2007 drill intersection of 1.06% eU3O8 over nearly 16 metres) and the Mistassini property of Strateco Resources Inc./Majescor Resources Inc. (late 2007 intersection of 18.5 metres grading 0.215% U3O8).

Santoy, as the Operator of the Xemplar Option blocks, has been conducting its 2008 uranium exploration program. To date, Santoy’s work has consisted primarily of property-wide prospecting, soil and lake geochemistry, radon gas sampling, and airborne geophysical surveys. Review of preliminary radiometric and radon data by Santoy has identified high-priority targets in four areas. Over the winter, Santoy intends to conduct a thorough review of historic exploration information and newly acquired data for all of these properties, in order to select targets for detailed follow-up and possible drilling in 2009.

Santoy has renamed the Xemplar Option blocks the Lorenz, Trident, Cigare, and Péribonka properties which encompass 1,241 claims totaling approximately 61,194 hectares. Highlights of Santoy’s work on the Xemplar Option blocks include:

* 5,785 line-kilometres of helicopter-borne radiometric and magnetic survey were completed and 720 lake-sediment samples were collected over these recently acquired properties. In addition, 690 radon-in-water determinations were completed on lake water samples. The review of preliminary radiometric and radon data have identified at least four high-priority targets for follow-up. Lake sediment results are awaited from the lab.

* At the Lorenz Gully prospect on the Lorenz property, limited field examination near the end of the season confirmed the presence of high-grade, basement-hosted uranium mineralization. The mineralization is hosted by fractured, bleached and hematite-altered greenstone and trends southeasterly towards the unconformity with overlying Otish sandstones, located only 300 metres away. Over 9,999 counts per second were recorded on bedrock and boulders and analytical results are pending. Past drill results by Uranerz intersected up to 1.87% U3O8 over 0.5 metres. Compilation of historic drill results and newly acquired magnetic, radiometric and Aerotem II survey data will take place over the winter.

* At the Lac Tion prospect on the Péribonka property, the Santoy crew located boulders of highly radioactive and altered mafic intrusive rock. Work by SERU Nucléaire Canada Ltée in the early 1980s had discovered small boulders grading up to 4% U in this area, and detailed ground surveys identified a 2.5 kilometre by 4 kilometre-wide area of anomalous soil and lake sediments. Deep holes in this area were unsuccessful, however, two fences of short “Winkie” drill holes identified an altered dolerite dike with anomalous uranium values (0.05% U3O8 over 0.8 metres).

* At the Lac du Castor prospect on the Péribonka property, field examination and review of preliminary airborne geophysical results confirm that the prospect occurs along the same gabbro sill as the Seru “L” deposit, currently being drilled by Abitex (see above). The gabbro sill and a NNE-trending zone of alteration can be traced for over five kilometres on Exemplar/Santoy Péribonka property, which completely surrounds Abitex’s property. Previous wide-spaced drilling (400-metre fences) by SERU in the early 1980s encountered anomalous radioactivity in several holes along this trend. The best hole (OELV 290), now on Santoy’s Péribonka property, intersected 0.15% U3O8 over 4.5 metres.

“Xemplar’s management is very encouraged with exploration results to date and the quality of work being carried out by Santoy” says Simon Tam, President of Xemplar.

With Santoy being the operator of the Xemplar Option blocks, it allows Xemplar to singularly focus on developing its uranium exploration properties in Namibia, most notably the Warmbad Project.

Finally, Xemplar has been advised by Santoy that a small portion of its lands in the western Otish Mountains will be affected by the proposed Monts Otish Park. However, key claims surrounding the Lorenz Gully and other key prospects are not affected. In addition, a new proposal called “Monts Otish Park Innu” now affects portions of the eastern part of the basin. Santoy’s claims remain in good standing and the status of the park proposal and possible boundary modification are being investigated.

Terms of Option Agreement (as announced on August 12th, 2008):

The option terms for Santoy to earn a sixty percent interest in the Properties include a cash payment of $250,000, a work commitment of $1.5 million (of which $500,000 is to be spent prior to January, 2009), and the issuance of 4 million Santoy shares (1 million upon regulatory approval of the Agreement and 3 million shares on the first anniversary of the Agreement). By exercising the option Santoy will have the choice of initiating a 60% Santoy-40% Xemplar joint venture in which Xemplar will be carried for the first $1 million in expenditures, or delivering to Xemplar 6 million shares of Santoy to obtain a 100% interest in the property. If Santoy elects to earn one hundred percent interest, a three percent Net Smelter Return royalty would be reserved for Xemplar and Xemplar’s underlying vendor. Santoy would retain the option, at any time, to purchase half of the total royalty payable for $500,000. Santoy will act as the Operator during the term of the Agreement.

The technical data in this news release has been approved by Santoy’s Vice President of Exploration, Mr. Mike Cathro, P. Geo., a qualified person as defined by NI 43-101.

On behalf of the Board of Directors,
Xemplar Energy Corp

“Simon Tam”
Chief Executve Officer

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE. THIS NEWS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY SECURITIES IN ANY JURISDICTION. "SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: THIS NEWS RELEASE CONTAINS FORWARD LOOKING STATEMENTS THAT ARE NOT HISTORICAL FACTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE SET FORTH IN OR IMPLIED HEREIN.


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