Infinito Gold Ltd. Closes Agreement to Sell Guyanese Assets

Trading Symbol: TSX-V: IG

CALGARY, Feb. 23 /CNW/ - Infinito Gold Ltd. (the "Company" or "Infinito") and Guyana Frontier Mining Corp. (formerly Shoreham Resources Ltd.) ("Purchaser") have closed the definitive purchase and sale agreement (the "Agreement") pursuant to the definitive purchase and sale agreement executed on December 22, 2010, and disclosed in the Company's news release dated December 22, 2010.

Under the terms of the Agreement the Purchaser has acquired 100% of the issued and outstanding common shares of Infinito's subsidiaries in Guyana and Aruba which hold the Marudi Mountain and Paint Mountain, and Potaro mineral concessions.  

Total consideration is US$500,000 in cash and the issuance of 1,600,000 common shares of the Purchaser to the Company. On August 17, 2010, the Purchaser paid US$100,000 to the Company (the "Deposit Payment"), and upon closing the Purchaser has paid to the Company the US$400,000 balance and issued 1,600,000 shares. 

The Company has been granted a 2% Net Smelter Returns ("NSR") royalty on all future mineral production from the Marudi Mountain Project to a maximum of US$3,000,000.  The Company has also received from the Purchaser a 2% NSR royalty for all future mineral production from the Potaro Project, to a maximum of US$2,000,000.

Under the terms of the Agreement Infinito has transferred to the Purchaser a 100% right, title and interest in and to the holding companies, free and clear of all encumbrances (except permitted encumbrances) and the interests of others. Furthermore, Infinito will retain no interest in or liability, including reclamation liability, associated with the holding companies other than the NSR royalties.

Caution Regarding Forward-Looking Information and Statements

Certain statements in this press release address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements.  These factors include, among others, the risks associated with commencing and continuing production at either the Marudi Mountain or Potaro Projects. The Company undertakes no obligation to update these forward-looking information or statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking information or statements.

INFINITO GOLD LTD.

John Morgan
President and CEO

"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy and accuracy of this release."


SOURCE Infinito Gold Ltd.

For further information:

INFINITO GOLD LTD.
600, 1100 1stStreet S.E.
Calgary, Alberta T2G 1B1
Telephone: (403) 444-5191

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Infinito Gold Ltd.

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