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Vancouver, BC - G4G Resources Ltd. ("G4G") and Magnetite Holdings SA Ltd ("Magnetite Holdings") recently announced that they have entered into an agreement which will allow G4G to acquire a 51% interest in Magnetite Holdings. Magnetite Holdings is a South African-based company with iron ore assets in Namibia.

Initial work has been completed by Magnetite Holdings to produce a chemical grade iron catalyst for sale to coal, gas and biomass converters which currently use the Fischer Tropsch (FT) process to produce ultra-clean diesel and gasoline. The most notable users of this particular iron catalyst are Sasol Ltd. of South Africa and other alternative fuel producers using the FT process.

"Chemical catalysts that break fossil fuels into their molecular parts result in higher rates of production efficiency and more environmentally friendly fuels and is a multi billion dollar business," said Basil Botha, President & CEO of G4G Resources Ltd. "Although catalysts have always been essential in the chemical industry, advances in catalyst technology have the potential to revolutionize the fossil fuels market. Governments who chose to adapt to these new technologies will have more control over their own political and economic destinies," Botha continued.

Catalysts in combination with the Fischer Tropsch process have the potential to:

• Allow remote regions of the world to become less dependent on foreign oil by producing liquid and gas fuels from coal.
• Allow economical production from stranded gas fields, which accounts for a large proportion of the world's known gas reserves.
• Free countries with large coal resources, like China and the US, from dependence on foreign oil.
• Reduce emissions of pollutants like nitrogen oxides, sulphur dioxide and other particulate matter.
• Promote waste recycling through conversion of plastic, rubber, municipal waste and waste oil to clean fuels.

Magnetite Holdings has an 80% equity holding in Namibian Magnetite (Pty) Ltd. In consideration for a US$20,000 cash payment, Magnetite Holdings will grant G4G an exclusivity period of sixty days, in which G4G may conduct due diligence on the iron ore assets.

Following a positive outcome from the due diligence evaluation, G4G can exercise its option to spend US$480,000 over a 12-month period to expand the current resource and obtain NI 43-101 status of the assets.

Following completion of the option to expand the current resource and the completion of a bankable feasibility study, G4G will acquire a 51% interest in Magnetite Holdings. Upon exercising this option, Magnetite Holdings will be entitled to put its shares into G4G in consideration for a gross royalty of 2% of revenue or a payment by G4G to Magnetite Holdings of US$2,000,000 that shall be satisfied, at the sole option of G4G, through a cash payment of issuance of the common shares of G4G with a value of US$2,000,000 calculated using the (5) five day weighted average closing price of the common shares of G4G for the (5) days prior to the date of issuance. The final agreement with Magnetite Holdings is subject to regulatory approval.

"This acquisition fits well with the G4G model to acquire iron ore assets in countries where there is good infrastructure. It will also give us the potential to expand the current resource with the potential to use the Finesmelt iron ore reduction process to produce hot briquetted iron and pig iron for sale to the South African steel industry. Our immediate intention is to drill the current historical resource to the NI 43-101 compliant resource category. This will immediately be followed by a bankable feasibility study," stated Basil Botha.

Under the terms of the agreement between G4G and Magnetite Holdings, each party will have the right to appoint two Directors to the Board of Namibian Magnetite. Following exercising of the second option, G4G will have the right to appoint one further Director as the Chairman of the Board of Directors.

The iron ore property is well located 40 kilometres south of Namibia's capital city of Windhoek. The ore body is of sedimentary origin and is mainly silicates, magnetite and specularite iron. The deposit is accessible by road and water, and power is readily available. The potential for an open-pit operation exists, and operations can be conducted year round. The potential also exits to add further mineral claims to the current land position.

SOURCE: G4G Resources Ltd.