CD Cantex Mine Development Corp

KELOWNA, BC, Sept. 20 /CNW/ -- KELOWNA, BC, Sept. 20 /CNW/ - Cantex Mine Development Corp. (CD : TSXV) ("Cantex" or the "Company") is pleased to announce that a Letter of Intent has been signed for the Al Hariqah gold project in Yemen and that drilling is progressing on the Leonard Creek gold project in Nevada. Al Hariqah Letter of Intent --------------------------- Cantex is pleased to announce that Cheetah-Yemen Holdings Ltd. ("Cheetah"), a wholly owned subsidiary of Cheetah Ventures Ltd. has entered into a letter of intent whereby Cheetah will be granted an option to acquire up to a 70% interest in the mineral claim known as the "Al Hariqah" Project in Yemen. Cheetah's interest will be earned in stages, but to earn the full 70% interest, Cheetah is required to fund exploration expenditures totaling C$5,000,000 plus 70% of the costs required to put the project into commercial production. Cheetah is obligated to fund a minimum of C$2,000,000 as a firm commitment, and will earn a 40% interest upon expending a total of C$4,000,000 and completing a prefeasibility study by March 2012. It can then earn an additional 10% interest by expending an additional C$1,000,000 toward exploration work and completing a feasibility study by September 2013; and can earn a final additional 20% interest by funding 100% of the costs of placing the project into commercial production. In the event that a mine is developed, Cantex will reimburse Cheetah for 30% of the costs associated with commercial development of the mine from 80% of Cantex's share of mine profits. The letter of intent and transactions contemplated therein are subject to a number of material conditions, including, inter alia, the negotiation of a definitive agreement, delivery and approval by Cheetah of a compliant National Instrument 43-101 Report, and TSX-V approval. Al Hariqah Update ----------------- Prior to the Ramadan religious holiday, 117 drill holes have been completed on the deposit. An additional 31 holes have been drilled with percussion techniques to a depth of approximately 100 meters and remain to be deepened with core drilling. A further 14 holes have yet to be started. This work has commenced now that the Ramadan break is over. A shipping container of percussion and core samples from Al Hariqah is scheduled to arrive in Vancouver today where they will be assayed for gold at the ALS Chemex Laboratory in Vancouver. Once drilling of the remaining 45 holes is complete a prefeasibility study will be undertaken. Leonard Creek Gold Project, Nevada ---------------------------------- As of September 17th, nine holes totaling 1,550 meters have been drilled to discover the source of the overlying Leonard Creek gold placers. However, one of the nine holes did not intersect bedrock due to technical drilling difficulties. Geologist John Churchill has submitted 1,044 drill samples of bedrock prospective for gold to the ALS Chemex Laboratory in Reno, Nevada for analysis. Drilling is underway on the two remaining holes which are planned to total about 730 meters. Summary ------- Cantex is pleased to have a letter of intent in place on the Al Hariqah gold project with Cheetah. On the TSX-V approval of a final agreement, funding by Cheetah will allow for accelerating the work needed to complete the prefeasibility study and, pending positive results, the cost of building a mine and going into production. The company also looks forward to the successful completion of drilling and gold assay results from the Leonard Creek gold project in Nevada. Technical portions of this release have been prepared and reviewed by Chad Ulansky P.Geol, a Qualified Person under NI 43-101. Signed, Charles Fipke Charles Fipke Chairman Neither 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. %SEDAR: 00010333E Cantex Mine Development Corp., 203-1634 Harvey Ave., Kelowna, BC, V1Y 6G2, Tel (250) 860 8582, Fax (250) 860 1362, Email cantex@shaw.ca

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