Blue Horizon Mining and Cayenne Execute Letter of Intent to Acquire Blue Horizon Mining

Blue Horizon Industries Inc. ("Blue Horizon") (CNSX:BH) and Cayenne Gold Mines
Ltd. ("Cayenne")(CNSX:CYN) are pleased to announce that Blue Horizon Mining Inc.
("BH Mining"), the 74% owned subsidiary of Blue Horizon, and Cayenne Gold Mines
Ltd. ("Cayenne") have entered into a Letter of Intent ("LOI") dated February 2,
2012, with respect to the acquisition of BH Mining by Cayenne. Pursuant to the
terms of the LOI, Cayenne will acquire 100% of the issued and outstanding shares
of BH Mining in exchange for the issuance of 43,500,000 common shares of Cayenne
at a deemed price of $0.05 per share (the "Proposed Transaction"). 


Prior to the closing of the Proposed Transaction, Cayenne will complete a
non-brokered private placement ("Private Placement") of securities at a price of
$0.05 per security for gross proceeds of not less than $650,000, the terms of
which are described in more detail below. Closing of the Proposed Transaction is
subject to a number of conditions including negotiation and execution of a
definitive agreement, receipt of all required approvals, including approval of
the Canadian National Stock Exchange and the shareholders of Cayenne, the
completion of the Private Placement, and the completion of the audit and filing
of the annual financial statements of Cayenne for the year ended September 30,
2011.


Pursuant to the Proposed Transaction, Cayenne would acquire all of the issued
and outstanding shares of BH Mining in exchange for the issuance of 43,500,000
common shares of Cayenne, and Blue Horizon would thereby indirectly acquire an
initial 31% ownership of Cayenne. The Cayenne shares issued will be subject to
escrow requirements pursuant to the rules of the Canadian National Stock
Exchange. In addition, Blue Horizon will convert its outstanding shareholder
loan in the amount of $1,200,000 into a convertible debenture of Cayenne
maturing on December 31, 2012, with the principal amount being convertible into
Cayenne common shares at $0.10 per share. Following the Proposed Transaction, a
new board team and management team will be elected. Upon completion of the
Proposed Transaction, the new management team anticipates conducting a
non-brokered private placement of common shares and common shares issued on a
flow-through basis for proceeds of up to $2,500,000. 


Don Allan, President and CEO of Blue Horizon stated "Combining our Vermillion
Forks Copper Property and our Kodi Gold Property with Cayenne's two quality gold
properties makes sound economic business sense. We are looking forward to being
able to access flow through funding that we were unable to access in the past as
a result of our complex corporate structure. This transaction will reduce both
companies overhead and on a go forward basis allow more money to go into the
ground that will help to prove up our joint properties. The successful
completion of this transaction will be the first step towards Blue Horizon
becoming a pure play bio-diesel refinery company. We are confident that the
transaction will not only result in greater liquidity and share appreciation for
Cayenne's shareholders but accelerate the development of our joint properties."


Alex Briden, President & CEO of Cayenne stated "As a result of the management of
Cayenne focusing on the Proposed Transaction with BH Mining, Cayenne has not yet
filed its audited annual financial statements for the year ended September 30,
2011 and has been listed on the list of defaulting issuers by the British
Columbia Securities Commission however we expect the audit to be completed over
the next 30 days. Due to the late filing of the annual financial statements, the
shares of Cayenne will be cease traded until we are able to file the annual
audited financial statements and MD&A with securities regulators and fulfill any
other requirements imposed by those regulators to have the cease trade order
revoked".


About Cayenne Gold Mines Ltd.

Cayenne Gold Mines Ltd. is an exploration mining company with 100% interests in
the Windflower and Hixon gold properties located in British Columbia. Additional
information regarding Cayenne can be found in their recent filings with SEDAR as
well as the information maintained on their website
http://www.cayennegoldmines.com/ 


About Blue Horizon Industries Inc.

Blue Horizon Industries Inc. is a diversified industrial company that operates
through three subsidiary companies; Blue Horizon Bio-Diesel Inc. - 100% owned
("BH Bio-Diesel"), Blue Horizon Energy Inc. - 100% owned ("Blue Horizon Energy")
and Blue Horizon Mining Inc. - 74% owned ("BH Mining"). Blue Horizon Contracting
("BH Contracting") and BH Energy are wholly-owned divisions of Blue Horizon
Energy. BH Contracting is currently bidding on new dismantling contracts, while
BH Energy is exploring for oil and gas in Western Canada having participated in
4 test wells in 2011. BH Mining is advancing two mining projects in British
Columbia and BH Bio-Diesel has an exclusive sub-license agreement to build green
bio-diesel plants in Canada.


The shares of the parent company, Blue Horizon Industries Inc., are listed to
trade on the Canadian National Stock Exchange ("CNSX") under the symbol BH.


This news release may contain certain forward-looking information. All
statements included herein, other than statements of historical fact, is
forward-looking information and such information involves various risks and
uncertainties. There can be no assurance that such information will prove to be
accurate, and actual results and future events could differ materially from
those anticipated in such information. A description of assumptions used to
develop such forward-looking information and a description of risk factors that
may cause actual results to differ materially from forward-looking information
can be found in the company's disclosure documents on the SEDAR website at
www.sedar.com. The company does not undertake to update any forward-looking
information except in accordance with applicable securities laws.
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