NAXOS REACHES WORKING AGREEMENT WITH JOHNSON-LETT
Vancouver, British Columbia - September 15, 1998 - Naxos Resources Ltd. (O.T.C. Bulletin Board: NAXOF), with its commitment to understanding the complexity of its Franklin Lake property, has entered into an agreement in principle with Johnson, Lett and Company to provide financial support for a program of technical work to be conducted by Dr. Al Johnson and his staff at his Tempe, Arizona laboratory. This commitment will be made on a month to month basis at a cost of $20,000 per month to cover the $20,000 monthly costs of the laboratory work on the Naxos samples. This working agreement calls for Johnson-Lett to conduct intensive research and testing on the Franklin Lake ore and that Naxos have a prior right to negotiate a purchase of any technology that proves to have value. If an agreement is not reached, and the technology is sold by Johnson-Lett to a third party, Johnson-Lett will be required to pay a break-up fee equal to the total of all the monthly $20,000 payments. The agreement in principal is subject to negotiation and execution of a definitive agreement between the two parties. Based on the successful testing, it is the intention of both parties to move toward the development of a pilot plant.
Austin Lett, Managing Director of Johnson-Lett said, "Mark Summers, Director of Naxos, and I have developed a close working relationship. I feel confident that we will be able to reach a fair agreement with regard to technologies developed by Al Johnson."
Dr. Johnson stated, "we have developed several technologies that may be useful for assaying and extracting precious metals from precursor ores like the Franklin Lake evaporite deposit. We are hopeful that our research and our testing program for Naxos will lead us to the conclusion that our technologies have commercial applications with the Naxos Franklin Lake property."
Formed in 1986 as a precious metals and development company, Naxos Resources owns mining projects in Venezuela and California.
ON BEHALF OF THE COMPANY
NAXOS RESOURCES LTD
Per: "Signed"
Sidney W. Kemp
President
All forward-looking statements made by Naxos involve material risks and uncertainties and are subject to change based on factors beyond Naxos' control. Accordingly, Naxos' future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, without limitation, those described in Naxos' filings with the United States Securities and Exchange Commission. Naxos does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.
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