On August 31, 2011, Concordia Resource Corp. (TSX-V:CCN) ("Concordia") and Swala Resources Inc. ("Swala") entered into a letter of intent in which Concordia will acquire Swala via a share exchange, creating a diversified mineral exploration company in Africa and the Americas.

Concordia Resource Corp. is a mineral exploration company with property holdings in North and South America and Spain. Swala is a private company founded in 2007 by African mining investors with a history of successful development in Africa. Swala brings an extensive exploration portfolio in the resource endowed regions of Burkina Faso, Gabon, the Democratic Republic of Congo, Zimbabwe and Mozambique. With the completion of the merger Concordia will have an established operating platform from which it can pursue an aggressive growth strategy towards becoming a leading African gold exploration company.

Under the letter of intent, the parties will negotiate and enter into a definitive agreement pursuant to which Concordia will acquire Swala, by way of a plan of arrangement. In accordance with the terms of the letter of intent, Concordia is proposing to exchange each share of Swala for 1.9 shares of Concordia. Swala shareholders will own approximately 30% of the resulting entity on both a basic and fully diluted basis.

It is anticipated that the definitive agreement will be entered into by October 17, 2011. The combined company will retain the Concordia name and remain headquartered in Vancouver, Canada.

Swala Resources Inc. is being advised in this matter by a team of Fasken Martineau lawyers led by John Turner and Krisztián Tóth.