TORONTO, April 11 /CNW/ - RAP Acquisition Corp. ("RAP") (NEX: RAP.H) is pleased to announce that it has entered into a letter of intent dated April 11, 2011 with Ferrum Americas Mining Inc. ("Ferrum Americas") and the principals thereof (the "Principals"), Nick Tintor and Laurence Curtis, both resident of Ontario, pursuant to which Ferrum Americas will complete a going public transaction (the "Proposed Transaction") by way of a reverse takeover of RAP in a transaction valued at over C$22.725 million.

Ferrum Americas is a federally incorporated iron ore mineral exploration company with properties in Bolivia.  Ferrum Americas, and its Bolivian subsidiary, Empresa Minera Yacuses S.A., have secured a beneficial interest of 50% and the right to earn up to a 98% beneficial interest  in an iron project in Bolivia known as Cerro Rojo, pursuant to joint ventures with private Bolivian corporations.  The concessions cover a portion of the Cerro Rojo Iron Range which is a 19 kilometre discontinuous banded iron formation close to the Mutún Iron Deposit in southeastern Bolivia.  Cerro Rojo is located approximately 50 kilometres west of the city of Puerto Suarez located on the Paraguay-Parana River, also known as the Hidrovia. The Mutún Iron Range is currently under active development by an Indian Steel Company, Jindal Steel Bolivia, in joint venture with the Bolivian Government.  All of the concessions under option by Ferrum Americas host banded iron formations of unknown quantity and grade. Very limited past exploration has been carried out on these concessions, including a preliminary reconnaissance program completed by Rio Tinto in 1999.  Ferrum Americas presently has working capital of approximately $305,000.

In conjunction with the Proposed Transaction, Ferrum Americas or an affiliate thereof intends to complete a private placement (the "Private Placement") of not less than $10 million.  In addition, in connection with the Proposed Transaction and subject to all necessary approvals, RAP will consolidate its shares on a 5:1 basis. It is intended that common shares of RAP will be issued to holders of shares of Ferrum Americas on the basis of 4.5 post-consolidation common shares of RAP for every one share of Ferrum Americas. Subject to regulatory approval, exchangeable securities of Ferrum Americas will be exchanged for comparable securities of RAP.

Upon execution of the letter of intent, RAP paid a deposit of $25,000 to Ferrum Americas which is non-refundable other than in limited circumstances. An additional non-refundable deposit of  $50,000 will be paid in certain circumstances.

A comprehensive press release with further particulars relating to the Proposed Transaction will follow in accordance with the policies of the TSX Venture Exchange (the "Exchange").

Completion of the transaction is subject to a number of conditions including, but not limited to, completion of satisfactory due diligence, completion of the Private Placement, execution of a definitive agreement in respect of the Proposed Transaction, regulatory approvals, Exchange acceptance, the principal shareholders of Ferrum Americas entering into and complying with support agreements and disinterested shareholder approval. The transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the Proposed Transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the management information circular or filing statement of RAP to be prepared in connection with the Proposed Transaction, any information released or received with respect to the Proposed Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of RAP should be considered highly speculative.

The Exchange has in no way passed upon the merits of the Proposed Transaction and has neither approved nor disproved the contents of this press release.

Notice on forward-looking statements:

This release includes forward-looking statements regarding RAP, Ferrum Americas and their respective businesses.  Such statements are based on the current expectations of the management of each entity. The forward-looking events and circumstances discussed in this release, including completion of the Proposed Transaction and the Private Placement, may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting the companies, including risks regarding the insurance industry, economic factors and the equity markets generally.  No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and RAP and Ferrum Americas undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

RAP is a corporation governed by the policies of the Exchange and listed on the NEX. RAP's current business is the identification and evaluation of assets or businesses with a view to completing a business combination.

Neither 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 or accuracy of this release.

SOURCE RAP Acquisition Corp.

For further information:

Ronald Schmeichel, Director of RAP Acquisition Corp. at 416-972-6574

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