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SYS

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Share Name Share Symbol Market Type
TSXV:SYS TSX Venture Common Stock
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0 -

Sona and China Machinery Engineering Corporation Extend the Timeframe for Turnkey EPC Agreement

13/03/2013 7:19pm

Marketwired Canada


Sona Resources Corp. (the "Company" or "Sona") (TSX VENTURE:SYS)(FRANKFURT:QS7)
is pleased to announce that the memorandum of understanding ("MOU") with China
Machinery Engineering Corporation ("CMEC") of Beijing (news release dated
February 13, 2013) has been extended to May 31, 2013. The two companies continue
to work toward completing a final definitive engineering, procurement and
construction ("EPC") contract within this time frame.


The EPC contract is for the 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.


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 using a
buyer's credit facility, and approval by the TSX Venture Exchange and Sona's
board of directors. The terms of the financing, repayment, mine development and
production will be set out in the final agreement and supply contract.


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.


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.


On behalf of the Board,

Nick Ferris, Executive Chairman

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 FURTHER INFORMATION PLEASE CONTACT: 
Sona Resources Corp.
501-3292 Production Way
Burnaby, BC, Canada  V5A 4R4
+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)
marwebint@cs.com

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