Sarissa Resources Announces Development Plans for the Company's Wholly Owned Nio-Star subsidiary's Nemegosenda niobium projec...

OAKVILLE, Ontario, Sept. 12, 2014 /PRNewswire/ -- Sarissa Resources Inc. ("Sarissa" [SRSR:OTCPK], or the "Company") is pleased to announce the next stage development plans for the Company's Nemegosenda niobium project in Ontario, which is 100% owned by the Company's wholly owned subsidiary, Nio-Star Corp.  This phase of the advancement of the project consists of two main objectives.

First, the Company is going to resume geological work on the Nemegosenda niobium project in Ontario.  The current work program which the Company has planned is expected to result in a pre-feasibility report on the project, specifically focusing on the D Zone.

1. Drilling and Geology: The Company has begun a program designed to twin certain of the diamond drill holes that the Dominion Gulf Company completed previously. The first of these has been completed and initial analysis indicates a strong correlation in niobium concentrations between the recently completed hole and the original Dominion Gulf Company hole (recently completed hole DDH-14-82 and the Gulf hole DDH-208-56-49).  The Company anticipates that the outcome of this work will be to validate the historical findings of Dominion Gulf Company and move the Company's historical resource estimate to a higher confidence NI 43-101 compliant resource classification.
2. Complete Metallurgy Studies: The Company has retained an engineering firm to conduct a Facility Pre-Feasibility Study relating to the metallurgical analysis of the ore at Nemegosenda.   To date, significant progress has been made towards the completion of this study and its completion is a near term goal.
3. Further consulting work toward this pre-feasibility report will include geological modeling and an environmental and marketing analysis, as well as to consolidate current and historic data into an updated resource estimate for the D Zone. The Company has begun sourcing the appropriate professional consultants to perform these duties.
4. Engage legal and accounting professionals to perform associated legal and accounting duties related to completing pre-feasibility study.  The Company has begun sourcing the professional service providers to perform these duties.

Second, the Company plans to spin out to Sarissa shareholders its wholly owned subsidiary, Nio-Star Corp. ("Nio-Star"), and list Nio-Star on a Canadian stock exchange.  The shareholders of Sarissa would receive shares of the newly-independent Nio-Star via a share dividend transaction.

In order to achieve this listing, the Company will:

1. Engage an auditor to complete the necessary audits of Nio-Star required for an exchange-listing of Nio-Star.
2. Engage a law firm to complete the necessary legal documentation for the spin out and exchange listing of Nio-Star.
3. If necessary, secure a Sponsoring Broker-Dealer who will  sponsor the Nio-star subsidiary for the exchange listing.
4. Engage a Geological firm to update the NI 43-101 resource estimate Nio-Star's Nemegosenda property which is required for the exchange listing.

Work has already begun on both of these short term objectives. 

Regarding the resumption of the geological work that is expected to lead toward a pre-feasibility study: The work will begin with the completion of the previously announced drilling program per the recommendations presented in the last NI 43-101 technical report prepared on the Nemegosenda Niobium Property (effective September 23, 2010 and available at www.sedar.com).  The Company will begin to drill the second hole of the precise twinning of five of the original Dominion Gulf drill holes within the D Zone that are discussed in that report on Nio-Star's Nemegosenda property.  Drilling of the next hole is scheduled to begin as soon as the drilling equipment and operations team can be mobilized.  Investors will be provided with updates as this work continues and will be notified of any changes to the plan and time frames that the Company's geologist recommends as this work proceeds.

Regarding the spin out of the Nio-Star subsidiary into a standalone entity listed on a Canadian Stock Exchange, the Company has already begun the selection of the professional service providers to complete the necessary steps to complete the spinout and listing transaction.   Shareholders will be provided with updates as progress on these steps is achieved, to the extent permitted under applicable securities laws and best practices.

About Sarissa Resources Inc.

Sarissa Resources Inc. is a junior exploration company with interests in properties in Northern Ontario, Canada. Sarissa and Nio-Star are specifically focused on the development of the Nemegosenda niobium project as well as the Shining Tree Resources Corp. gold projects.  Visit www.sarissaresources.com for additional information.

Safe Harbor

This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Sarissa Resources Inc. and Nio-Star Corp., as well as members of their respective management, in addition to the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of financial results and positions, the ability to compete successfully and the ability to complete above-referenced exploration and testing, as well as business transactions. Neither Sarissa nor Nio-Star undertakes any obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

SOURCE Sarissa Resources Inc.

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