Eastern Resources, Inc. Signs Letter Of Intent To Increase Gold Sales

DENVER, Aug. 20, 2012 /PRNewswire/ -- Eastern Resources, Inc. (OTC Bulletin Board: ESRI), a Delaware corporation ("ESRI" or, the "Company"):  The Board of Directors of ESRI is pleased to announce that Elkhorn Goldfields, Inc., a wholly owned subsidiary of ESRI and owner and operator of the Golden Dream Mine located near Boulder, Montana ("Elkhorn"), entered into a letter of intent with Black Diamond Holdings LLC ("BDH").  Pursuant to this letter agreement, the ounces of gold payable under the existing Minerals Product Receivables Purchase Agreement (the "MPRPA") between Elkhorn and BDH will be increased by 38,000 ounces, from 33,000 ounces to a total of 71,000 ounces.  The gold payable rate under the MPRPA will be reduced from 80% to 50% with a production cost paid to Elkhorn of $500 per ounce on delivery.  The tail, which is due after the Golden Dream Mine has produced an initial 250,000 ounces, will be increased from 6.5% to 15% at a production cost of $600 per ounce paid to Elkhorn at delivery.  Elkhorn will realize up to $12,500,000 from the forward sale of the full 38,000 ounces.

Funds from the successful sale of these additional ounces of gold will be used to continue the development of the Company's Golden Dream Mine, targeting production of 258,000 ounces of gold and 8.6 million pounds of copper over the first five years of operations at a mining and milling rate of approximately 750 tons per day.  Elkhorn has completed approximately 1,000 feet of underground development, has complete surface infrastructure, and most recently installed a water treatment system giving it the capability to fully develop the Golden Dream Mine.  The Company believes there is an additional 250,000 ounces of gold drill indicated on the current mine level and the ore body is still open at depth and on strike. 

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