Referendum Gold Property - Option for 100%

Anglo Swiss Resources Inc. on October 30, 2009 entered into an option to purchase agreement with Thomas Cherry of Nelson, B.C., wherein Anglo Swiss may acquire a 100-per-cent interest in the Referendum gold property.

The Referendum gold property consists of 19 contiguous staked mineral claims covering 1,381 hectares. Consideration from Anglo Swiss consists of payments totaling $250,000 plus 300,000 Anglo Swiss common shares by the fifth anniversary of the agreement. The agreement is subject to a royalty interest of a 2.5-per-cent net smelter return. Anglo Swiss may, at any time, purchase the royalty interest for $2-million.

The Referendum gold property is situated on the southern borders of Anglo Swiss's 100-per-cent-owned Kenville gold mine property, including the recently optioned (60 per cent) Ron gold property, located 10 kilometres from Nelson, B.C. This acquisition greatly enhances Anglo's land position to the south, extending the potential strike length of the regional geological trend along the Silver King shear zone. The Silver King shear is the host to numerous historical gold, copper and silver mines in southeastern British Columbia, including Anglo's Kenville gold mine.

Exercise of the Option

If Anglo Swiss has paid $250,000 to Cherry and issued 300,000 Common Shares within 60 months of the Agreement to Cherry, Anglo Swiss shall be deemed to have exercised the Option and will have acquired an undivided 100% right, title and interest in and to the Property, subject only to the Royalty Interest.
Cherry will also receive an additional 200,000 Common Shares should Anglo Swiss: (i) exercise the Option; (ii) file with the applicable regulatory authorities a comprehensive feasibility study for the Property prepared by an independent engineer; and (iii) receive a mining permit.

Royalty Interest

This Agreement is subject to a 2.5% Net Smelter Return (the “Royalty Interest”) calculated and payable from the Property in accordance with the provisions of Schedule “B” attached hereto. Cherry agrees that Anglo Swiss may, at any time, purchase the entire Royalty Interest from Cherry for $2,000,000.