Interra Copper Corp. entered into a non-binding letter of intent (the "LOI") with ArcWest Exploration Inc. to negotiate an 80% earn-in and joint venture agreement on ArcWest's Rip Cu-Mo Project ("Rip Project" or the "Project"), in central British Columbia, a prolific mining region on Canada's west coast. The Rip Project comprises 2,309 ha and is located about 63 km south of Houston and 79 km southwest of Burns Lake in central British Columbia. The Rip Project is situated in Stikine Terrane in a prolific belt of Late Cretaceous (Bulkley Plutonic Suite) porphyry copper-molybdenum (Cu-Mo) deposits, which includes Imperial Metals' Huckleberry Mine, 33 km to the southwest and presently on care and maintenance. In addition to the Huckleberry Mine, the Bulkley porphyry belt includes the Whiting Creek, Poplar, Seel and Ox Cu-Mo (gold-silver) deposits. The fully permitted Rip Project is road accessible
from either Houston or Burns Lake. Under the terms of the LOI, Interra obtains a two-stage option to earn up to an 80% ownership interest in the Rip Project over up to an 8-year period. In the 1st stage, Interra has the option to earn, over a 4-year staged work-schedule, a 60% share ownership in the Rip by issuing 1,050,000 shares of Interra, completing geological and exploration expenditures of CAD 2,000,000, and paying CAD 100,000 cash to ArcWest, over a period 4 years and 3 months, until December 31, 2027. The 2nd stage of the earn-in requires Interra to advance the Project to Feasibility Study level in order to obtain an additional 20% for a total of 80% ownership, within 4 years of completing the first tier earn-in, or at the latest December 31, 2031. This 2nd stage of the option requires Interra funding CAD 2 million in work and paying ArcWest CAD 250,000 per year. Possible extensions are granted to Interra for 3 additional years until 2033 at the latest, by continuing these same terms plus an additional CAD 100,000 per year.