Oct 28, 2010
Erdenetsogt Property Sale
Vancouver, B.C. - October 28, 2010 - Robert L. Card, President of Gulfside Minerals Ltd. ("Gulfside" or the "Company"), is pleased to report that the Company has signed a Share Purchase Agreement ("SPA") with Mangreat Ltd. ("Mangreat"), the majority owner of ECM LLC ("ECM"), a Mongolian corporation which holds the exploration license to the Erdenetsogt project, providing for the sale of the Company's 5% interest in ECM.[/B]
The Company will receive up to[B] $US3, 000,000 under certain conditions. Mangreat has paid $US500, 000 into escrow with a balance of $US1, 500,000 due within one year. The Company will transfer its 5% interest in ECM and terminate its current litigation in Mongolia upon receipt of the first $US2, 000,000. If the property is sold or joint ventured to a third party for a value greater than $US40, 000,000 the Company will receive an additional $US1, 000,000. Under the SPA the parties have also agreed to abandon all litigation over the property and the license. The transaction is subject to receipt of all documentation and agreements being executed and delivered to the Escrow Agent.
History of the Project: Gulfside entered into a Memorandum of Understanding (MOU) in June of 2007 and agreed to expend monies on the Erdenetsogt project to develop the coal resource. The Company eventually produced a National Instrument ("NI") 43-101 technical report. The parties negotiated a sale price of the property to Gulfside but differences arose which delayed the agreement in November 2007. In March 2008 the parties signed an agreement to purchase the property but before the agreement was approved by the TSX Venture Exchange, differences again arose and the agreement was not ratified. Later in 2008 the company took legal action under the terms of the original MOU of June 2007 to protect its rights under the MOU.
In early 2009 the company prevailed in the Supreme Court of Mongolia and was awarded a 5% interest in ECM. Later in 2009 the company commenced an action in Mongolian courts to assert its rights of first refusal to additional shares of ECM. This action is currently pending in the courts and will be abandoned under the new SPA. The Company had also commenced an arbitration action in the Courts of England which action will also be terminated under this SPA
Once the sale agreement is concluded, the Company plans to concentrate its interest on the Onjuul project and seek funding to continue with the Onjuul development program.
On Behalf of the Board of Directors,
Gulfside Minerals Ltd.
"Robert L. Card"
Robert L. Card
Delmor Enterprises Ltd.
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
Forward-Looking Statements: This document includes forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning GMG's planned exploration program in Mongolia and other statements that are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions are forward-looking statements. Although GMG believes that its expectations reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are disclosed under the heading "Risk Factors" and elsewhere in the corporation's periodic filings with Canadian securities regulators.