Otis Capital completes qualifying transaction


    OOO (TSX-V)

    VANCOUVER, July 16 /CNW/ - Otis Capital Corp. (the "Company") is pleased
to announce that its Qualifying Transaction (see News Release dated April 22,
2008) has been approved by the TSX Venture Exchange. The Qualifying
Transaction consists of the acquisition of a 100% interest in the Blue Hill
Creek Gold Project (the "Blue Hill Creek"), a right to earn up to a 75%
interest in the Kilgore Gold Project and two other gold properties (see News
Release dated June 10, 2008), additions of new management and a concurrent

                       About the Kilgore Gold Project

    The Kilgore Gold Project comprises a large, 5 square mile,
volcanic-hosted disseminated epithermal hot-spring gold system situated on the
northern margin of the eastern Snake River Plain. Mineralization is of
Pliocene age and is hosted within Miocene age lithic and crystal tuff on the
margin of a caldera setting. Mineralization style and setting, host rock type
and thickness, and overall size of the mineralizing system are analogous to
those characterizing the Round Mountain, Nevada and McDonald Meadows, Montana
multi-million ounce volcanic-hosted disseminated gold deposits.
    Between 1983 and 1996, a total of 122,257 feet of drilling in 191 holes
was conducted on the Kilgore deposit by Bear Creek, Placer Dome US, Pegasus
Gold and Echo Bay Mines. The majority of this drilling, 82,897 feet in
122 holes, was performed by Echo Bay between 1994 and 1996. In 1996, Echo Bay
completed a NI 43-101 non-compliant cross-sectional global resource estimate
for the Kilgore deposit. This estimate comprises 706,000 ounces of gold in
22.582MM tons of material at an average grade of 0.031 ounces per ton ("opt")
Au (0.010 opt Au cutoff). Also in 1996, Placer Dome US, Echo Bay's
minority-position joint venture partner on the property, estimated a NI 43-101
non-compliant resource of 561,000 ounces of gold contained in 14.112MM tons at
an average grade of 0.040 opt Au (0.015 opt Au cutoff). These estimates, which
are based on the above noted historic drilling, are mentioned for historic
information and reference purposes only. A Qualified Person has not done
sufficient work to classify the historical estimates as current mineral
resources, the issuer is not treating the historical estimates as current
mineral resources and the historical estimates should not be relied upon.
    Within the Kilgore deposit is a higher-grade core comprising a series or
set of northwest-trending (?) structurally controlled bonanza-style feeder
quartz vein zones that have only partially been drill tested. Some of the
better drill intercepts associated with these zones include 90' @ 1.091 opt Au
(hole PK-56, 370' - 460'), 75' @ 0.222 opt Au (hole 94 EKR-89, 95' - 170'),
45' @ 0.331 opt Au (hole EKM-5, 267' - 312'), and 65' @ 0.243 opt Au (hole 94
EKR-86, 250' - 315'). These zones represent a high priority exploration target
for the Company.
    Deposit metallurgy is considered excellent based on favorable results of
bottle roll and column leach tests performed in 1995 and 1996 by Hazen
Research, Inc, Golden, Colorado on Echo Bay drill core and RC cuttings. All
bottle roll tests resulted in greater than 90% gold extractability and showed
that the mineralization is not refractory. Column leach tests indicate 94.3%
recovery on oxidized material (-1/2" crush size) and 86.9% on mixed/partially
oxidized material (-1" crush size), material types which together comprise
over 85% of the deposit. As noted in a 2002 Rayner and Associates and Van
Brunt NI 43-101 compliant report on the property, the extraction of 86.9% gold
on mixed material after 75 days of leach time is excellent and suggests that
even coarser crush sizes may also lend themselves to favorable extractability,
thus enhancing deposit economics.

                      About the Blue Hill Creek Project

    Located in Cassia County, Idaho, the Blue Hill Creek Gold Deposit is a
classic epithermal hot spring-type gold exploration target consisting of 18
unpatented federal lode mining claims and an adjacent 80 acre Idaho State
lease. The Company retained Mr. Laurence Pancoast, a registered professional
geologist and the Company's Qualified Person, to prepare a NI 43-101 Technical
Report entitled "Blue Hill Creek Gold Project - Geology, Mineralization,
Resource Potential, Cassia County, Idaho" (the "Report"). The Report confirmed
the presence of an open-ended Inferred Resource totaling 14,438,600 tons
having an average gold grade of 0.0163 ounces per ton, for a total of
235,000 ounces of gold. Additionally, the Report recommends an immediate
USD$600,000 exploration program, including $500,000 in drilling.
    Gold mineralization at Blue Hill Creek was originally discovered by
Meridian Minerals in the summer of 1985. This mineralization is part of a
larger, north-trending, 5-mile-long by 1-mile-wide belt of precious metal
occurrences along the western margin of the Albion Range metamorphic core
complex. At Blue Hill Creek, alteration and gold mineralization are mainly
hosted by capping sinters and Tertiary Salt Lake Formation epiclastic
sedimentary and tuffaceous volcanic rocks. Gold-bearing chalcedonic sinters
and strongly silicified tuffaceous sedimentary rocks with disseminated pyrite
and quartz veining compose the main target in the altered zone. This zone,
currently 3,350-feet long and up to 1,000-feet wide, with mineralization open
in all directions as well as at depth, contains surface gold values to
0.060 opt. Mineralization appears related to north- and northeast-trending,
high-angle structures. Local, post-mineral northeast-trending faulting has
displaced and buried mineralized sections to the northwest, some of which have
yet to be drill tested.
    A total of 11,403 feet of drilling spread among 26 reverse circulation
holes have been placed on the property, 17 by Meridian to partially test the
Tertiary-hosted target during the 1986 and 1987 field seasons, and an
additional nine by Latitude Minerals Corp. to test the Tertiary-hosted target
and suspected deeper feeders in Paleozoic carbonate rocks during the 1998
field season. Of the 26 holes drilled, 22 encountered gold mineralization and
extensive zones of silicification, with 10 holes bottoming in rock containing
in excess of 0.010 opt Au. Some of the best intercepts include 100 feet @
0.033, 400 feet @ 0.017, 260 feet @ 0.024, and 170 feet @ 0.023 opt Au. These
historic drill results confirm the presence of significant thicknesses of
bulk-tonnage, epithermal hot-spring-type gold mineralization in the target
area, as well as the potential for additional mineralization along the
open-ended, lateral, and at depth extensions of the deposit.
    John R. Carden, Ph.D., P. Geo., a Qualified Person as defined by National
Instrument Policy 43-101, is responsible for the technical information
contained in this news release.

                               New Management

    Dr. John R. Carden has been appointed to the Board of Directors of the
Company. Dr. Carden has more than 30 years' experience in exploration
management, teaching, and research. He has broad experience in managing large
exploration programs including tracking costs, managing personnel, negotiating
leases and contracts, writing technical reports, delivering verbal
presentations, writing permitting and compliance documents for state and
federal agencies, and managing remote drilling programs involving camp
logistics. He has a proven track record for discovery of ore deposits in the
western United States, with a gross metal value of more than $750 million.
From 1986 through 1998, Dr. Carden was with Echo Bay Mines. During the period
from 1992 to 1998, he was Echo Bay's Director of U.S. Exploration, where he
directed the work of two district geologists, eight senior geologists, and a
GIS specialist. This group was successful in generating 35 funded projects
over a five year period. While at Echo Bay, he discovered the 600,000 ounce
Lamefoot gold deposit, Echo Bay's highest-grade and lowest cost producer, and
the Easy Junior gold deposit, a 250,000 ounce sediment-hosted gold deposit
located in White Pine County, Nevada. Most recently, Dr. Carden has consulted
on gold projects in Mexico for Minefinders in Chihuahua and Sonora states, and
in Zacatecas for Corex Gold Corp and in Chihuahua for Paramount Gold and
Silver Corp.
    Dr. Carden has a Ph.D. in Geology from the Geophysical Institute,
University of Alaska, Fairbanks, Alaska and an M.Sc. degree in Geology from
Kent State University, Kent, Ohio. He is a Licensed Geologist in the State of
Washington and a Fellow member of the American Institute of Professional
Geologists and a Fellow of the Society of Economic Geologists. Dr. Carden is
currently a Director of Paramount Gold and Silver Corp. and Magnum Uranium
    Mr. Mitchell Bernardi has been appointed as Chief Geologist of the
Company and an officer of the Company's US subsidiary, Otis Capital USA Corp.
Mr. Bernardi has over 30 years of experience in the mining industry and a
proven exploration track record of mineral resources and discoveries in gold,
zinc, copper, yttrium, rare earths, and uranium. Mr. Bernardi's education
includes a M.Sc. in Geology (Magna Cum Laude) from Western Washington
University and additional studies under a University Fellowship at Ohio State
University. The bulk of Mr. Bernardi's professional experience, some 20 years,
has been in precious metals property generation, exploration, and development,
having worked on numerous deposit types while employed by Echo Bay Mines,
Cyprus Metals Exploration, Meridian Minerals, Unocal - Molycorp, Inc.,
Latitude Minerals and Amoco Minerals. He is currently the Chief Geologist of
Magnum Uranium Corp., and in this role has been responsible for the
identification, acquisition and development of all Magnum properties.
    Discoveries directly associated with Mr. Bernardi as project leader or as
co-discoverer of include the Kilgore gold deposit, Idaho, Coulterville gold
project, California, Crypto zinc deposit, Utah, Pan gold deposit, Nevada,
Santiam copper breccia pipe, Oregon, and the Blue Hill Creek gold/silver
deposit, Idaho.

                             Concurrent Financing

    The Company is also pleased to announce the closing of a concurrent
non-brokered private placement of 3,765,000 Units at a price of $.50 per Unit,
for aggregate gross proceeds of $1,882,500. Each Unit consists of one common
share (a "Share") and one Share purchase warrant (a "Warrant"). Each Warrant
is exercisable to purchase a Share of the Company for two years, at a price of
$.70 per Share in Year One, and $.90 per Share in Year Two. The net proceeds
from this private placement will be used to conduct the work program
recommended on the Kilgore Gold Project and Blue Hill Creek Project and for
general working capital purposes. Commissions or finder's fees totalling
$89,425 have been paid on the financing.


    "Craig T. Lindsay"
    President & CEO

    This news release does not constitute an offer to sell or a solicitation
of an offer to sell any of securities in the United States. The securities
have not been and will not be registered under the United States Securities
Act of 1933, as amended (the "U.S. Securities Act") or any state securities
laws and may not be offered or sold within the United States or to U.S.
Persons unless registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is available.

For further information:

For further information: Tel: (604) 683-2507, Fax: (604) 683-2506,
E-mail: craig@otiscapital.com, www.otiscapital.com

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