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Polar Star Mining Amends Option Agreement With Kairos Capital - Quick Facts

Polar Star Mining Corp. (PSR.TO) announced that it has entered into an amended and restated option agreement with Kairos Capital Corp. (KRS_P.V: Quote) to amend certain terms of the option agreement between Polar Star and Kairos dated February 16, 2012, pursuant to which Kairos agreed to acquire an interest in certain mineral exploration properties located in Chile.

As per the terms of the Original Option Agreement, Kairos agreed to acquire from Polar Star a 51% interest in: (i) 16 mineral exploration concessions, known as the "Nancagua Property"; (ii) 29 exploration concessions and an option to acquire five (5) additional exploration concessions, known as the "Fortuna Property"; and/or (iii) one of Polar Star's non-core properties.

Under the terms of the Amended and Restated Option Agreement, Kairos will pay US$165,000 to Polar Star and shall have funded US$50,000 of option payments due to a third party in respect of the Fortuna Property, in exchange for which Kairos will acquire a 100% interest and a 50% interest in the Nancagua Property and the Fortuna Property, respectively.

With respect to the Fortuna Property, under the terms of the Amended and Restated Option Agreement, Kairos will have the option of increasing its interest in the Fortuna Property if Kairos: funds the $1.30 million in scheduled option payments due to a third party by May 31, 2014, Kairos shall earn an additional 10% interest in the Fortuna Property; (ii) incurs additional exploration costs of $600,000 on or before March 31, 2015, Kairos shall earn an additional 5% interest in the Fortuna Property; and (iii) if Kairos completes a bankable feasibility study in respect of the Fortuna Property on or before March 31, 2023, Kairos shall earn an additional 10% interest in the Fortuna Property.

As per the terms of the Amended and Restated Option Agreement, Kairos will have the option to earn a 51% interest in the Salvadora Property by spending $600,000 on exploration programs on the Salvadora Property on or before March 31, 2014. Upon completion of the Earning Phase, Kairos shall have the option of increasing its interest in the Salvadora Property.

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by RTT Staff Writer

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