Silk Road Resources Ltd. announces progress on sale of Bulagou Property and a bridge loan to EurOmax



    TORONTO, June 2 /CNW/ - Silk Road Resources Ltd. (TSX-V; SIL) ("Silk
Road" or the "Company") is pleased to announce that the Gansu Provincial
Commerce Department has approved the Equity Interest Transfer Agreement
between the Company's wholly-owned subsidiary, Power Fortune Resources Limited
("Power Fortune"), and Chenzhou Mining Group Company Limited ("Chenzhou") to
sell Power Fortune's joint venture interest in the Bulagou property for gross
proceeds of RMB 111.8 million, or approximately CAD$17.8 million at current
exchange rates. Closing of the sale is subject to three further approvals by
Chinese regulatory authorities, as well as approval by Silk Road shareholders
and the TSX Venture Exchange. The Company is pleased to be moving forward with
this transaction.
    Additionally, the Company today announces that, it has entered into a
bridge loan agreement with EurOmax Resources Limited ("EurOmax") for
CAD$250,000 from proceeds of the private placement which closed on May 25,
2009. The bridge loan to EurOmax is for general working capital purposes for
the period until the previously announced business combination between Silk
Road and EurOmax is completed. Full details of the proposed business
combination are included in the respective Management Information Circulars of
each of EurOmax and Silk Road which are being mailed to EurOmax and Silk Road
shareholders, respectively, in accordance with applicable securities laws.

    Forward Looking Statements:
    Certain information regarding the Company set forth in this press
release, including management's assessment of the Company's future plans and
operations contains forward looking statements that involve substantial known
and unknown risks and uncertainties. These forward looking statements are
subject to numerous risks and uncertainties, some of which are beyond the
Company's and management's control, including but not limited to, the impact
of general economic conditions, industry conditions, fluctuation of commodity
prices, fluctuation of foreign exchange rates, imperfection of reserve
estimates, environmental risks, industry competition, availability of
qualified personnel and management, stock market volatility, timely and cost
effective access to sufficient capital from internal and external sources. The
Company's actual results, performance or achievement could differ materially
from those expressed in or implied by, these forward looking statements and
accordingly, no assurance can be given that any of the events anticipated to
occur or transpire from the forward looking statements will provide any
benefits to the Company.

    
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.
    

    %SEDAR: 00012266E




For further information:

For further information: David Bell, President and CEO, Tel: (416)
363-6040, Fax: (416) 363-6048, Email: dbell@silkroadresources.ca

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SILK ROAD RESOURCES LTD.

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