Kobex Resources acquires Lucky Jack Molybdenum Property for US$52 million

On April 3, 2007, Vancouver-based Kobex Resources Ltd. Entered into a US$52.25 million mining option transaction with US Energy Corp. and Crested Corp. of Riverton, Wyoming. The transaction provides Kobex with the option to acquire up to a 65% interest in the Mount Emmons Molybdenum Property (now named the Lucky Jack Property) located near Crested Butte, Colorado, with the potential to acquire 100% of the property. The parties believe that this property contains a low cost, world class, primary molybdenum deposit. A national instrument 43-101 technical report has been completed on the property and the parties are now working towards developing this deposit. To acquire the initial 50% interest in the property, Kobex must incur certain expenditures over the initial 4 years of the project, and deliver a bankable feasibility study, for total expenditures of at least US$50 million. In addition, cash payments must be made over the first four years of the project of a minimum of US$2.25 million, which can be in Kobex shares. US Energy can then elect to have Kobex continue in a 50/50 joint venture, have Kobex arrange 100 % of the financing to build a mine and bear all operating costs in return for an additional 15% interest in the property (65% in the aggregate), or have Kobex acquire 100% of the property through a newly formed wholly owned subsidiary of US Energy by the issuance of up to, but not including, 50% of Kobex's total issued and outstanding shares. Kobex was represented by Darrell Podowski and Georald Inborg of the Vancouver office of Fasken Martineau DuMoulin LLP, and by John Fognani of Fognani & Faught, PLLC located in Denver CO for US mining and environmental advice. US Energy and Crested were represented by Scot Anderson of the Denver, CO based law firm of Davis Graham & Stubbs LLP.