Amazon GoldSands Options Mining Property in Peru

Amazon GoldSands Ltd. announce that the company has entered into a Mineral Right Option Agreement in Peru, South America.

On September 18, 2008, we entered into a Mineral Right Option Agreement with Temasek Investments Inc. Pursuant to this Agreement, we acquired four separate options from Temasek, each providing for the acquisition of a twenty-five percent (25%) interest in certain mineral rights in Peru as described in Annex 1 of the Agreement, thus potentially resulting in our acquisition of 100% of the Mineral Rights. The Mineral Rights are owned by Rio Santiago Minerales S.A.C. (“Rio Santiago”). Beardmore Holdings, Inc. (“Beardmore”), a wholly-owned subsidiary of Temasek, owns 999 shares of the 1,000 shares of Rio Santiago that are issued and outstanding. Temasek owns the single remaining share of Rio Santiago. The acquisition of each 25% interest in the Mineral Rights will occur through the transfer to us of 25% of the outstanding shares of Beardmore.

We may exercise the initial twenty-five percent (25%) option to acquire a 25% interest in the Mineral Rights by paying $250,000 to Temasek, issuing 2,500,000 shares of our common stock to Temasek within five (5) business days from the Effective Date and paying an additional $250,000 to Temasek within ninety (90) days of the Effective Date.

We may exercise the second twenty-five percent (25%) option resulting in our acquisition of a 50% interest in the Mineral Rights within 6 months of the Effective Date by paying an additional $750,000 to Temasek and issuing 3,500,000 additional shares of our common stock to Temasek. We may exercise the third twenty-five percent (25%) option resulting in our acquisition of a 75% interest in the Mineral Rights within 12 months of the Effective Date buy paying an additional $1,250,000 to Temasek, and issuing 4,500,000 additional shares of our common stock to Temasek. We may exercise the fourth twenty-five percent (25%) option resulting in our acquisition of a 100% interest in the Mineral Rights within 18 months of the Effective Date by paying an additional $2,500,000 to Temasek and issuing 5,500,000 additional shares of our common stock to Temasek. Upon our acquisition of a 100% interest in the Mineral Rights, Temasek will hold its single share of Rio Santiago in trust for our sole benefit and hold the share strictly in accordance with our instructions.

Upon our acquisition of a 100% interest in the Mineral Rights, Temasek is entitled to an annual 2.5% net returns royalty. However, if we pay Temasek $2,000,000 within ninety (90) days of our acquisition of a 100% interest in the Mineral Rights, Temasek will only be entitled to an annual 1.5% net returns royalty.

If we exercise the second twenty-five percent (25%) option, resulting in our acquisition of a 50% interest in the Mineral Rights, and fail to acquire a 100% interest in the Mineral Rights, we and Temasek will form a joint venture in which we will be wholly responsible for developing a feasible mining project and all necessary facilities and Temasek shall retain a carried free interest in the mining rights. If we do not develop a feasible mining project within three years of the Effective Date, we will be responsible pay Temasek an advance minimum mining royalty of $500,000 per year, which will be deducted from Temasek’s net return royalty.
Website: http://www.AmazonGoldSands.com