Sona Signs Agreement With China Machinery Engineering Corporation for Turnkey EPC and Development of the Blackdome-Elizabeth

Sona Signs Agreement With China Machinery Engineering Corporation for Turnkey 
EPC and Development of the Blackdome-Elizabeth Gold Project 
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/13/13 -- Sona
Resources Corp. (the "Company" or "Sona") (TSX
VENTURE:SYS)(FRANKFURT:QS7) is pleased to announce that it has signed
a memorandum of understanding ("MOU") with China Machinery
Engineering Corporation ("CMEC") of Beijing for an engineering,
procurement and construction contract ("EPC"). This will facilitate
development of Sona's Blackdome-Elizabeth Gold Project (the
"Project"), located in the Clinton and Lillooet Mining Districts of
British Columbia, approximately 220 kilometres north of Vancouver.  
Based on the terms of the MOU for the Project, CMEC will: 


 
--  Assist Sona with the arrangement of a buyer's credit for production debt
    financing for the Project, through one or more Chinese financial
    institutions, for 85 percent of the capital requirements for the
    construction and commencement of mining operations, up to US$55 million;
      
--  Construct and deliver turnkey operations for the Project, based on an
    industry-standard engineering, procurement and construction ("EPC")
    contract;
      
--  Provide for ongoing resource definition and expansion, and;
      
--  Collaborate with Sona to implement an employment skills training program
    for personnel. 

 
The EPC contract will include, but is not limited to, the costs of
engineering, procurement, design, civil works and other construction
expenses; transportation of equipment; labour; all ancillary
buildings, electrical equipment and power sources; and all related
mine and administrative infrastructure, to commence commercial
production at the Project.  
Nick Ferris, Sona's Executive Chairman, says, "We are delighted to
have this agreement with CMEC. It is an international engineering
group with an excellent reputation for the design, engineering and
construction of high-quality industrial and infrastructure projects
worldwide. We look forward to working with CMEC to expedite the
commencement of gold production at the Blackdome-Elizabeth Gold
Project." 
The transaction is subject to a number of conditions, including but
not limited to the completion of a due diligence review by CMEC and
its affiliates, definitive documentation for the project financing
and the EPC contract, and approval by the TSX Venture Exchange and
Sona's board of directors. 
The table below outlines the key parameters of the MOU between CMEC
and Sona. 


 
----------------------------------------------------------------------------
Terms                              Blackdome-Elizabeth Gold Project         
----------------------------------------------------------------------------
Operator                           Sona or a Sona-appointed contractor      
----------------------------------------------------------------------------
Loan amount                        Up to $55 million                        
----------------------------------------------------------------------------
Interest rate                      8%                                       
----------------------------------------------------------------------------
Term                               Eight years                              
----------------------------------------------------------------------------
Loan repayment                     60% of mine cash flow                    
----------------------------------------------------------------------------
Percentage of financing by lender  85%                                      
----------------------------------------------------------------------------
Percentage of financing by Sona    15%                                      
----------------------------------------------------------------------------
Grace period                       Principal and interest payments commence 
                                   three months after full commercial       
                                   production is achieved                   
----------------------------------------------------------------------------
Timing of definitive EPC contract  February 28, 2013. May be extended by    
                                   mutual agreement                         
----------------------------------------------------------------------------

 
The terms of the financing, repayment, mine development and
production will be set out in a definitive final agreement. 
About China Machinery Engineering Corporation  
Headquartered in Beijing, CMEC is a member of China National
Machinery Industry Corporation ("SinoMach"), a listed Fortune Global
500 enterprise. CMEC began operations in 1978 as China's first large
state-owned corporation to integrate engineering contracting and
foreign trade with industry. As a leading international engineering
contractor and service provider, it has a well-established presence
in the EPC industry. It delivers turnkey solutions to its customers,
both government and corporate, with a special focus on developing
countries. CMEC has ranked among the top 10 overseas contractors in
China by completed business volume, as published by the Chinese
Ministry of Commerce.  
Since its inception, CMEC has undertaken projects in over 45
countries on all five continents. Power, transportation and water
treatment and supply form the core of its EPC activities, with over
80 successful engineering contracting projects in the power sector
alone. It has also engaged in engineering contracting in other core
sectors, such as mining, telecommunications, construction and
manufacturing. CMEC has extended its business reach to more than 150
countries and territories in the fields of international contracting
and general trade. It successfully went public on December 21, 2012,
and trades on the Hong Kong Stock Exchange under the symbol HK1829. 
About Sona Resources Corp.  
Based in Vancouver, Sona is a junior gold resource company with a
focus on bringing its Blackdome-Elizabeth Gold Project into full
commercial production. Since its inception in 1990, Sona has engaged
in a wide range of mineral exploration activities in Canada, Mexico
and the United States, as well as small-scale gold production. 
Sona owns a 100 percent interest in the former Blackdome Gold Mine in
south-central British Columbia, 250 kilometres north of Vancouver;
and the Elizabeth Gold Deposit Property, 30 kilometres south of
Blackdome. At Blackdome, the mineral resources are estimated to be
52,500 oz. gold, grading 11.29g Au/t indicated; and 25,900 oz. gold,
grading 8.79g Au/t inferred (news release dated May 4, 2010). At
Elizabeth, Sona has outlined an inferred gold resource of 206,100 oz.
gold, grading 12.3g Au/t (news release dated June 8, 2009).  
Sona aims to bring the fully permitted Blackdome mill back into
production at an initial rate of 200 tonnes per day, with feed from
the formerly producing Blackdome Gold Mine and trucking feed from the
Elizabeth Gold Deposit Property. A positive Preliminary Economic
Assessment by Micon International Ltd. (news release dated May 28,
2010), at a gold price of $950 per ounce over an eight-year mine
life, has estimated costs of $208 per tonne mined, or $686 per ounce
of gold recovered, based on approximately 23,500 ounces of gold
recovered per year.  
Planned underground mining activities at both Blackdome and Elizabeth
will be conducted by a combination of shrinkage and long-hole
methods, with access via horizontal adits. The Blackdome mine and
mill was in production for four years in the late 1980s, and thus the
processing technologies and metallurgical recoveries are thoroughly
documented. Precious metals are to be recovered at the Blackdome mill
via existing gravity and flotation recovery circuits. The expected
metallurgical recoveries are approximately 94 percent for gold and 78
percent for silver. Of this, some 60 percent of the precious metals
are expected to be recovered from the gravity circuit, with the
balance from the flotation circuit. Gold and silver from the gravity
recovery will be poured into dore bars on site, while a flotation
concentrate will be shipped to a smelter for processing. During the
initial stages of operation, Sona will closely follow the mining plan
developed by Micon. 
Sona also holds a 100 percent interest in the Montgolfier Project in
Quebec, 40 kilometres east of the multimillion-ounce Casa Berardi
Mine gold deposit. 
Mineral resources that are not mineral reserves do not have
demonstrated economic viability. 
This news release contains certain forward-looking statements, and
such statements involve risks and uncertainties. The results or
events predicted may differ materially from actual results or events.
Any forward-looking statement speaks only as of the date of this news
release. Except as may be required by applicable securities laws, the
Company disclaims any intent or obligation to update any
forward-looking statement, whether as a result of new information,
future events or results, or any other occurrence. 
For more information, visit www.sonaresources.com. 
Neither the TSX Venture Exchange nor its regulation services provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release. 
Contacts:
Sona Resources Corp.
+1 (604) 684-6677
+1 (604) 684-6678 (FAX)
info@sonaresources.com
www.sonaresources.com 
Marston Webb International
Victor Webb
Media Inquiries
+1 (212) 684-6601
+1 (212) 725-4709 (FAX) 
Marston Webb International
Madlene Olson
Media Inquiries
+1 (212) 684-6601
+1 (212) 725-4709 (FAX)
marwebint@cs.com
 
 
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