GEL Graphano Energy Ltd

Glass Earth Gold Limited (TSX VENTURE:GEL)(NZAX:GEL) ("Glass Earth") announces
that it has entered into an option agreement to acquire a 50% equity interest in
Exploration Permit 40 427 known as the Ophir prospect in Otago, New Zealand,
with Ophir Gold Ltd, a private company.


Transaction

The proposal amalgamates together the land positions of the more advanced
resource position of Ophir Gold's EP 40 427 with possible extensions of
structures into Glass Earth's EP 40 870, and also provides for additional Glass
Earth ground around both those permits.


The transaction is a farm-in by Glass Earth into EP 40 427 (which has existing
near-surface gold mineralisation) on the following terms:


a. Glass Earth to solely fund an evaluation study of a deposit within the Joint
Venture Area (see attached map); 


b. Concurrently, Glass Earth will spend NZ$250,000 (approximately C$185,000) on
the JV Area; then


c. Subsequent to the JV being formed and making a Decision to Mine, Glass Earth
would be responsible for the design, resource permitting and installation of
suitable processing plant on the chosen mining site (including the initial
funding thereof);


d. Ophir Gold would reimburse Glass Earth for its 50% share of any plant
acquisition costs out of 50% of its net profits from mining; 


e. Glass Earth contributes additional ground around Ophir Gold's EP 40 427
Permit. The joint venture, with Ophir Gold, will be shared 50:50. (see map).


The Project

The Ophir Project is a 640 ha area located in the heart of Central Otago reef
gold country, two hours drive northwest of Dunedin. Numerous highly prospective
mineralized reefs, as well as near-surface gold bearing gravels, contribute to
the excellent potential of the overall Joint Venture Area. 


Historic hard rock gold production (up to 1939) from the Ophir prospect was
approximately 1,200 oz, won from 13,000 tonnes at an average grade of 3g/t.
Native gold occurs as grains between 4mm and 10mm diameter in the Ophir prospect
areas (including Wai-iti, South Wai-iti and Air-strip). 


More recently, exploration work undertaken by Ophir Gold Ltd in 2005/06 has
consisted of:


- Geologic mapping; soil sampling; rock chip and channel sampling; small pit
excavations and a preliminary round of shallow drilling (Phase 1 - approximately
C$290,000);


- Magnetic surveys across the Wai-iti target; drilling of 11 RC Holes (661m
total) and 4 diamond drill holes (192m) (Phase 2 - approximately C$275,000)


Ophir Gold has previously published estimates of mineralisation and these are
being re-evaluated by Glass Earth as part of the evaluation study underway. 


The predominance of coarse gold raises difficulties in adequately testing such
mineralisation via drilling. Glass Earth's preferred approach would be to tackle
the appraisal for mining via bulk testing of several of the vein systems. 


Objective

The evaluation study will examine the potential for open pit mining the
near-surface oxidized ore zones and separating out the coarse gold by means of
conventional crushing/grinding followed by a gravity separation process.
Irrespective of the smallish scale of the initial mining approach, it may
provide positive cash flow for Glass Earth, especially as gold prices remain
high. The potential to replicate the mining on other pods of near-surface ore
will be progressively evaluated going forward. 


Qualified Persons

Glass Earth's exploration programmes are carried out under the supervision of
Glass Earth's President and CEO, Simon Henderson, M.Sc, M.AUSIMM, F.SEG. Mr.
Henderson meets the qualified person requirements (as defined by National
Instrument 43-101) with more than 30 years of experience in the gold mining and
exploration industry. 


About Glass Earth Gold Limited

Glass Earth is one of the largest New Zealand-based gold exploration companies
exploring a land position of over 17,000 km2 in the North and South Islands.
With its main office in Wellington, New Zealand, Glass Earth Gold Limited is
listed on the TSX Venture Exchange (TSX VENTURE:GEL) and the New Zealand
Alternative Stock Exchange (NZAX:GEL).


To receive Company news via email, contact lindsay@chfir.com and mention "Glass
Earth news" in the subject line.


To view the map accompanying this release please click the following link:
http://media3.marketwire.com/docs/gelmap818.pdf.

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