Melkior closes sale of Otish interest to Kakanda

Melkior Resources Inc. announces the closing of the sale to Kakanda Resources Corp. of its 50% interest in a Joint Venture Agreement with Santoy Resources Ltd. Melkior sold to Kakanda its 50% interest in 968 mining claims (Group A) and in 13 mining claims (Group B) in the Otish Basin. Melkior also sold its 50% interest in an Option Agreement with Majescor Resources Inc. to earn 66 2/3% interest in 317 mining claims in the same area (Group C).

The consideration received by Melkior is $500,000 cash and 4.1 million shares of Kakanda. Melkior will retain a 1% net smelter return (NSR) on the Group A claims and a 0.25% NSR on the Group B claims.

Kakanda will be a major uranium explorer in the Otish during 2008. It will actively explore the acquired properties along with other important holdings. As a shareholder in Kakanda, Melkior will be participating in all of Kakanda’s exploration.