Benton Resources Corp. (BTC) receives $2 million at an effective 200% premium on exercise of a warrant by Stillwater Mining Company (SWC) to conti

THUNDER BAY, ON, July 10 /CNW/ - Benton Resources Corp. ("Benton") is pleased to announce that it has received $2 million on the exercise of a warrant by Stillwater Mining Company ("SWC") in accordance with the first anniversary requirements of the Participation Agreement (the "Agreement") dated July 10, 2007 between Benton and SWC whereby SWC has the exclusive right to earn up to an initial 50% interest in the Goodchild and South Goodchild Ni-Cu-PGE projects (collectively the "Goodchild Project"). Pursuant to the exercise of the warrant Benton issued 1,290,322 common shares to SWC at an effective exercise price of $1.55 representing a 200% premium to the current market.

In accordance with the Agreement to earn an initial 50% interest in the Goodchild Project SWC is required to complete three separate financings over three years into Benton in the aggregate amount of $6 million ($3 million of which must be spent on the Goodchild Project) as follows:

    
    a)  a $1.6 million private placement (of which $600,000 is to be spent on
        the Goodchild Project) at an issuance price of $1.24 per share, which
        was completed in July, 2007;

    b)  a $2 million financing (of which $1 million is required to be spent
        on the Goodchild Project) pursuant to the exercise of a warrant
        issued pursuant to the Agreement and having an effective exercise
        price of $1.55 per share, which was completed on July 10, 2008; and

    c)  a $2.4 million financing (of which $1.4 million is required to be
        spent on the Goodchild Project) to be completed by July 10, 2009
        pursuant to a warrant issued pursuant to the Agreement, such warrant
        to have an exercise price equal to a 50% premium to the trading price
        of Benton's shares at the time of exercise.
    

Upon fulfilling the requirements to earn an initial 50% interest SWC and Benton shall form a 50/50 joint venture (the "Joint Venture") for the further development of the Goodchild Project subject to SWC's right to earn a further 10% interest in the Joint Venture (to 60%) by directly funding an additional $4 million in exploration expenditures over the following two year period.

Provided it earns a 60% interest in the Joint Venture SWC will have the right to earn a further 10% interest in the Joint Venture (to 70%) by directly funding over the following three year period an additional $20 million in exploration expenditures or the completion of a Feasibility Study, whichever occurs first.

At Benton's sole election, following completion of the Feasibility Study, Benton may cause SWC to arrange total project financing for placing the Goodchild Project into commercial production by granting SWC an additional 5% interest in the Goodchild Project (to 75%). In such case, SWC would be reimbursed for Benton's proportionate share of the financing from 80% of Benton's share of net revenue from the Goodchild Project with interest at the prime rate of the Royal Bank of Canada plus 1%.

Benton is extremely pleased to have SWC as a partner as SWC continues to support the Goodchild Project through the next phase of exploration. The significant premium to Benton's share price that SWC is willing to pay on exercise of its warrant reflects the potential of the Goodchild Project to host a Ni-Cu-PGE deposit of economic proportions. Benton is currently planning an extensive drill program to evaluate significant targets identified to date.

The Goodchild Project is located approximately 15 kilometres north of Marathon, Ontario and is host to several nickel showings with grab samples assaying up to 6.72% nickel (Falconbridge/Xstrata personnel). The large ultramafic intrusion measures approximately 5 by 8 km and has numerous untested airborne electromagnetic anomalies detected from a survey completed almost 20 years ago. Benton will keep its shareholders updated on developments at the Goodchild Project as exploration moves forward.

Clinton Barr (P.Geo.), V.P. Exploration for Benton Resources Corp., is the qualified person responsible for this release.

On behalf of the Board of Directors of Benton Resources Corp.

"Stephen Stares"

Stephen Stares, President

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT

RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties.

Contacts

Stephen Stares at 3290 Willard Ave
Thunder Bay
Ont.
P7E 6J7
Phone (807) 475-7474
Fax (807) 475-7200
www.bentonresources.ca