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Snowfield Development Corp (TSX: SNO)("the Company") today announces that on January 4th, 2005 it negotiated a loan agreement for the principal amount of $50,000 with an arms-length individual. The loan will bear interest at the Bank of Montreal prime rate plus 2% and the Company will issue a bonus of 50,000 common shares to the lender at a deemed price of $0.20 per share.
The proceeds of this loan are being used as interim funding to replace those funds expended with respect to the terms of acquisition of the GTen 16 Mineral Claim on the Company's Ticho Project in the Drybones Bay area, Great Slave Lake, N.W.T. as announced January 10, 2005 (NR 05-01). The GTen 16 Mineral Claim Option Agreement was accepted for filing by the TSX Venture Exchange (the "Exchange") on January 14, 2005.
Subject to Exchange approval, the Company will also issue a guarantor's bonus of 50,000 common shares to a director of the company who has personally guaranteed repayment of the loan and who has lodged collateral with an escrow agent in support of that guarantee.
Regulatory approval is required for the loan transaction and share issuances contemplated in this news release.
ON BEHALF OF THE BOARD
"Robert T. Paterson"
President
SNOWFIELD DEVELOPMENT CORP.
THE CANADIAN VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENTS HEREOF.