Citation Agrees to Combine with Inlet Resources

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES


Citation Resources Inc. (the "Company" or "Citation") (TSX VENTURE:CTT) is
pleased to announce that it has entered into a binding letter agreement (the
"Letter Agreement") pursuant to which Inlet Resources Ltd. ("Inlet") (TSX
VENTURE:INL) has agreed to acquire all of the issued and outstanding shares of
Citation (the "Citation Shares") from the shareholders of Citation (the
"Citation Shareholders") in exchange for common shares of Inlet (the "Inlet
Shares") (the "Merger"). 


"I am delighted to announce a transaction which brings both financing and
management to Citation. Inlet's proven management and technical capability in
advancing exploration and development projects, combined with Citation's
permitted, drill-ready Biricu Project creates a unique foundation to deliver
value to shareholders of Citation" said Matthew Watson, Chairman and CEO of
Citation. "Our exploration program at Biricu has demonstrated very attractive
geological aspects of the Biricu concessions consistent with other discoveries
in the Guerrero Gold Belt and Citation now has an accomplished partner with the
resources necessary to immediately launch the initial drill program for the
Biricu Property." 


Key Merger Terms

Pursuant to the Merger, Citation Shareholders will receive half of an Inlet
Share for each Citation Share held by them (the "Exchange Ratio") on the date
the Merger is completed (the "Closing"). Based on the Inlet Share closing price
prior to the halt of trading on April 21, 2014, the Exchange Ratio represents an
implied value of $0.0675 per Citation Share and an implied premium of 25.3% to
the 20-day closing average volume weighted Citation Share price prior to the
halt of trading on April 21, 2014, of $0.0539.


Subject to certain adjustments, the parties have agreed that Inlet will have not
less than $1,400,000 of net working capital on the Closing. In addition, the
Letter Agreement contemplates that Inlet will complete an equity non-brokered
private placement of units ("Units") at a price of $0.15 per Unit, concurrently
with the Closing, to raise proceeds of up to $1,500,000 (the "Financing"). Each
Unit will be comprised of one Inlet Share and one warrant exercisable to
purchase an additional Inlet Share at a price of $0.25 for a period of one year.
The net proceeds of the Financing will be used to fund the exploration and
development of the Biricu Project.


The Letter Agreement contemplates that the Merger will be effected by a
statutory plan of arrangement or such alternate structure as is agreed to by the
parties. As a result, following the Closing, it is anticipated that Citation
will become a wholly owned subsidiary of Inlet and Citation Shareholders will
become shareholders of Inlet. Citation's existing directors shall be entitled to
nominate two members of the board of directors of Inlet, which shall be
comprised of five persons after giving effect to the Merger.


All unexercised Citation options that have not been exercised prior to the
Closing will become exercisable for Inlet Shares at the Exchange Ratio.


The parties intend to enter into a definitive agreement prior to May 30, 2014
incorporating the terms of the Letter Agreement together with other terms
customary for transactions of this nature (the "Definitive Agreement"). The
parties' obligations to close the Merger will be subject to conditions precedent
to be specified in the Definitive Agreement including, among other things,
completion of satisfactory due diligence by each of the parties, the receipt of
all necessary consents, approvals and other authorizations of any regulatory
authorities, shareholders or third parties, including receipt by Inlet of an
independent technical report on the Biricu Property satisfying the requirements
of the TSX Venture Exchange, and, if necessary, receipt of a favourable fairness
opinion in respect of the Merger acceptable to the board of directors of
Citation.


The Letter Agreement includes customary deal-protection provisions in favour of
Inlet, including a customary non-solicitation covenant from Citation until May
30, 2014 and a break fee of $150,000 if, following an unsolicited superior
proposal, Citation wishes to terminate the Letter Agreement and pursue that
proposal. However, if an unsolicited, superior proposal is to be pursued by
Citation, Inlet has a customary five-day right to match such a proposal,
provided such matching proposal is accompanied by a non-refundable payment of
$100,000 to Citation. 


Pursuant to the Letter Agreement, Citation has agreed to use reasonable efforts
to cause the directors and officers of Citation to enter into lock-up agreements
with Inlet, pursuant to which they will vote their Citation Shares in favour of
the Merger. The lock-up agreements provide that the Citation directors and
officers may under certain circumstances terminate the lock-up agreements upon
accepting an unsolicited superior proposal.


About Inlet Resources Ltd.

Inlet Resources Ltd. is a publicly listed company that trades under the symbol
"INL" on the TSX Venture Exchange as a junior resource company with a focus on
acquiring mineral projects that will provide the opportunity to enhance
shareholder value. The Company is incorporated in British Columbia, Canada and
is a "reporting issuer" in British Columbia, Alberta and Ontario. 


Inlet has an authorized share capital consisting of an unlimited number of
common shares, of which 17,467,315 common shares are issued and outstanding.
There are no outstanding options or warrants to acquire common shares of Inlet.


About Citation Resources

Citation Resources Inc. is a growth-oriented, Canadian mining company dedicated
to the exploration and development of precious and base metal resources.
Citation has 39,019,287 shares and 2,848,000 options outstanding. Citation is
based in Vancouver, British Columbia and aims to create shareholder value
through the acquisition, exploration, and development of profitable mineral
properties, in a manner that is consistent with best practice in environmental
stewardship, safety and stakeholder engagement. The Company has an option
agreement with Esperanza Resources Corp. (a subsidiary of Alamos Gold Inc.) to
acquire a 100% interest in the Biricu Project mineral exploration concession
located in Guerrero State, Mexico. The Biricu Project comprises more than 41,000
hectares of highly prospectable ground and management believes that the Biricu
Project is the direct on-strike extension of five skarn deposits in the Guerrero
Gold Belt (El Limon-Los Guajes - Torex Gold Resources Inc.; Bermejal, Los Filos,
and Nukay - Goldcorp Inc.; Ana Paula - Newstrike Capital Inc.). 


Cautionary Statements Regarding Forward Looking Information

Certain statements in this news release contain forward-looking information.
These statements include, but are not limited to, statements with respect to the
Merger and the Financing, including the terms thereof and the planned closing
time, and with respect to the Biricu Project. These statements address future
events and conditions and, as such, involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance
or achievements of to be materially different from any future results, outcome,
performance or achievements expressed or implied by the statements. Such factors
include, among others, the overarching risk that the Merger will not close, the
risk that the parties will not be able to reach a Definitive Agreement by May
30, 2014, the risk that the parties will not be able to obtain an independent
technical report, risks related to the availability of financing and the future
price of metals, the risk of a Competing Proposal and the timing and amount of
expenses related to the Merger. With respect to the Biricu Project, risk factors
include the price of metals, results of exploration activities, relations with
locals, the availability of exploration equipment, and risks related to the
exercise of the option agreement with Esperanza Resources Corp. There can be no
assurances that such statements will prove to be accurate and actual results and
future events could differ materially from those anticipated in such statements.
Accordingly, the reader should not place any undue reliance on forward-looking
information or statements. The Company undertakes no obligation to update
forward-looking information or statements, other than as required by applicable
law. The Company makes no implication that the mineralization of the property
comprising the Biricu Project will be similar to that of adjacent properties.


ON BEHALF OF THE BOARD OF DIRECTORS

CITATION RESOURCES INC.

Nigel Kirkwood, CFO

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Citation Resources Inc.
Nigel Kirkwood
CFO
604-682-6784
info@citationresources.com
www.citationresources.com
Citation Resources (TSXV:CTT)
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