ETN Etna Resources Com Npv

Etna Resources Inc. ("Etna") (TSX VENTURE:ETN) is pleased to announce that it
has entered into a Share Option Agreement (the "Option Agreement") dated
December 18, 2009, with Escondidas Internacional S.A. de C.V., a privately held
Mexican corporation ("Escondidas") and the shareholders of Escondidas (the
"Shareholders"). Following the entry into the Option Agreement, the Shareholders
granted an option to Etna to acquire 76% of the shares of Escondidas (the
"Option"). Escondidas has entered into a joint venture and development agreement
(the "CPI Joint Venture") with CPI Internacional S.A. de C.V., a privately held
Mexican corporation ("CPI"), whereby CPI and Escondidas have agreed to jointly
process lithium and precious metals in the Cierro Prieto geothermal brines that
are owned by CPI through concessions and located in Baja California, Mexico,
roughly 30 km south of the city of Mexicali.


CPI is the owner of concessions granted by the Mexican Federal Water Commission
that hold residual brine waters which are produced from deep wells at Cierro
Prieto by the Mexican Federal Electrical Commission (the "MFEC"). The MFEC
operates the Cierro Prieto geothermal power plant, which, at 720 MW, is the
second largest such plant in the world. MFEC pumps brines from these deep wells
and diverts the steam fraction to its power plant, delivering the residual
brines to CPI. 


The CPI Joint Venture calls for Escondidas and CPI to mutually exploit,
industrialize and commercialize lithium chloride minerals and derivative lithium
products from the brines. At a minimum, Escondidas will receive a 33% interest
carried through production of lithium products. Should CPI be unable to provide
project financing for the lithium production facilities, Escondidas has the
opportunity to bring project financing and increase its interest in any lithium
project and resultant products.


Upon the exercise of the Option, Etna will acquire the irrevocable right to
receive 76% of the issued and outstanding shares of Escondidas held by the
Shareholders. In consideration for the Option, Etna has agreed to pay or issue
the following on the closing date of the Option Agreement on a pro rata basis:
(i) payment of US$125,000 to the Shareholders; (ii) issuance of 10,300,000
common shares in the capital of Etna to the Shareholders; and (iii) issuance of
7,500,000 warrants (each, a "Warrant") to the Shareholders, each Warrant of
which entitles the Shareholder to acquire an additional Etna share at the
exercise price of CDN$0.50 per share for a period of two years from the closing
date. In addition, Etna is obligated to pay to the Shareholders the following
sums on a pro rata basis: (i) US$500,000 6 months from the date of closing; (ii)
US$500,000 12 months from the date of closing; and (iii) US$750,000 18 months
from the date of closing. The proposed acquisition is between arm's length
parties. As a result, the proposed acquisition will not require shareholder
approval from the shareholders of Etna.


The Option Agreement further provides that Etna will pay: (i) US$150,000 to
Escondidas on signing for the repayment of outstanding indebtedness owed by
Escondidas; (ii) US$50,000 to Escondidas on signing, and US$25,000 on a monthly
basis thereafter until the earlier of the closing date or the termination of the
Option Agreement to cover costs relating to outstanding expenses, due diligence,
legal fees and other general and administrative expenses of Escondidas; and
(iii) US$50,000 to Escondidas at closing for the repayment of outstanding
indebtedness owed by Escondidas.


Conditions of Closing 

The parties have agreed to close the proposed transaction on or before March 31,
2010, or such other date as the parties may agree to in writing. Exercise of the
Option and completion of the proposed transaction will be subject to certain
conditions including: (i) completion of the Etna's satisfactory due diligence
review of Escondidas, the CPI Joint Venture, and the concessions; (ii) receipt
of all necessary regulatory and exchange approvals; and (iii) the amendment of
the Charter of Escondidas to provide certain minority shareholder protection
rights.


Business of Escondidas

Escondidas is a private Mexican company established in 2005 and engaged in the
business of acquiring interests in mineral projects in Mexico. The CPI Joint
Venture is the first such project acquired by Escondidas. The concessions
covered by the CPI Joint Venture are believed to contain lithium and precious
metals which may be developed in commercial quantities. In particular, lithium
is contained in brines which are a residual component of geothermal power
generation at Cierro Prieto, which are delivered to CPI as owner of the
concessions. Etna believes that Escondidas will be able to capitalize on the
substantial existing infrastructure of the geothermal power plant (well fields,
evaporation ponds and related facilities) which could result in capital and
operating cost savings for purposes of the construction and operation of a
lithium products recovery facility. Moreover, there are limited exploration
risks such as those encountered with typical mining projects.


On Behalf of the Board,

ETNA RESOURCES INC. 

Andrew A. Brodkey, President and CEO

This press release contains projections and forward-looking information that
involve various risks and uncertainties regarding future events. Such
forward-looking information can include without limitation statements based on
current expectations involving a number of risks and uncertainties and are not
guarantees of future performance of the Company such as the statement that: (i)
Etna may exercise the Option; (ii) the closing of the Option Agreement may occur
and that closing may occur on or prior to March 31, 2010; (ii) should CPI be
unable to provide project financing, Escondidas has the opportunity to bring the
project financing and increase its interest in any lithium project and resultant
products; (iv) the concessions covered by the CPI Joint Venture are believed to
contain lithium and precious metals which may be developed in commercial
quantities; and (v) Etna believes that Escondidas will be able to capitalize on
the substantial existing infrastructure of the geothermal power plant which
could result in capital and operating cost savings for purposes of the
construction and operation of a lithium products recovery facility. There are
numerous risks and uncertainties that could cause actual results and the
Company's plans and objectives to differ materially from those expressed in the
forward-looking information, including the: (i) adverse results from due
diligence on Escondidas, material agreements and the concessions related
thereto; (ii) inability to close the Option Agreement and obtain Exchange
approval for any reason; (iii) adverse market conditions; (iv) a decrease in
demand for and price of lithium; and (v) general uncertainties with respect to
mineral exploration in general. Actual results and future events could differ
materially from those anticipated in such information. These and all subsequent
written and oral forward-looking information are based on estimates and opinions
of management on the dates they are made and are expressly qualified in their
entirety by this notice.


This news release does not constitute an offer to sell or a solicitation of an
offer to buy any of the securities in the United States. The securities have not
been and will not be registered under the United States Securities Act of 1933,
as amended (the "U.S. Securities Act"), or any state securities laws and may not
be offered or sold within the United States or to "U.S. Persons", as such term
is defined in regulations under the U.S. Securities Act, unless an exemption
from such registration requirements is available.

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