Concerned Shareholders of Chariot Resources Limited

August 31, 2009 15:15 ET

Chariot Shareholders Are Reminded to Vote the Blue Proxy to Instigate Positive Change Before Tomorrow's Deadline

Support the Superior Team that Can Deliver Shareholder Value

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 31, 2009) - The Concerned Shareholders of Chariot Resources Limited ("Chariot") today reminded their fellow shareholders that their opportunity to compel positive change at Chariot by voting their BLUE proxy expires tomorrow, September 1, 2009 at 10:00 a.m. ET.

"Chariot's shareholders have less than 24 hours to vote their BLUE proxy to prevent further shareholder value destruction at Chariot," said Mr. Brian Edgar. "This is an opportunity for shareholders to exercise their rights and let the entrenched board know that we will not stand to lose another opportunity to move Chariot forward."

Since the launch of the dissident campaign, the entrenched management has continued to allege that Lundin Mining Corp. ("Lundin") is attempting to "seize control" of Chariot. They have completely disregarded Lundin's public announcements regarding their intentions which reaffirm that Lundin does NOT have any vested interest in the campaign other than to protect their investment in Chariot. For the record, Lundin is not soliciting shareholder's votes, nor are they interested in acquiring Chariot.

"Management has instigated rumours about Lundin to distract shareholders from the real issue at hand - and that is that they failed to deliver shareholder value," added Mr. Lukas Lundin.

Chariot's recent 123% share price appreciation can be directly attributed to the dissident campaign, reflecting the market's optimism for change at Chariot. "Since August 1st, nothing has happened to the Company or the price of copper to justify a 123% rise from July's average trading price of $0.22 per share, compared to the closing price of $0.49 on August 20, 2009, a day after the call for change announcement," add Mr. Edgar. "The reason for this price appreciation is solely the anticipation of new management on September 4, 2009. If the Concerned Shareholders are successful, we anticipate that, with new management uncertainty eliminated, the Company's share price will appreciate further. Conversely, if current management is maintained, we see no reason why the Company's shares will not return to the $0.22."

Shareholders are urged not to be distracted by management's campaign of misinformation and are encouraged to remember that the current board:

- FAILED to progress Chariot's principal project despite having sufficient funds, plenty of time and offers of technical assistance offers from Lundin in the past.

- MISSED opportunities to deliver shareholder value - over the last five years while copper prices increased by 115% and Chariot's peer companies' share prices increased by 127%, Chariot's share price increased by ONLY 29%. (From Aug.20, 2004 - Aug. 20, 2009)

- MISALIGNED its interests from those of shareholders - as evidenced by the entrenched Board holding less than 1% of Chariot's outstanding shares.

- MISINFORMED shareholders and the Market about its "well advanced" strategic review process to sell Chariot - can a Board who has been incapable of communicating to the market the fair value of Chariot's principal assets really negotiate the best deal for shareholders?

"Ultimately shareholders need to ask themselves who will maximize shareholder value in the shortest period of time, and in factoring in the poor track record of lost value and lost opportunities of the current board, it is clear that the new slate is better equipped," said Mr. Lundin. "The proposed nominees bring deep and varied mining industry experience and technical expertise with a solid track record of strong performance - including a recent record of delivering exceptional shareholder value through sale of control transactions during the most difficult economic environment in the last 60 years. Above all, they have an effective plan to reverse Chariot's current decline and improve the market's valuation of Chariot."

Time is Short - Vote Today

Voting Instructions:

Canadian Beneficial Shareholders: visit www.proxyvote.com and enter your 12 digit control number or call 1-800-474-7493 or fax your proxy to 905-507-7793 in order to ensure that it is received before the deadline.

U.S. Beneficial Shareholders: visit www.proxyvote.com and enter your 12 digit control number or call 1-800-454-868.

Registered Shareholders: If the common shares are held in your own name, please sign, date and return your proxy today by fax at 416-867-2271 or 1-866-545-5580 or by delivery to Kingsdale Shareholder Services, The Exchange Tower, 130 King Street W., Suite 2950, P.O. Box 361, Toronto, Ontario M5X 1E2.

Time is of the essence - fax or mail your BLUE proxy today. Please ensure that you sign and date the proxy.

Contact Information

  • Kingsdale Shareholder Services Inc.
    North American Toll Free Phone: 1-888-518-6832
    Outside North America, Banks and Brokers Call Collect:
    416-867-2272
    contactus@kingsdaleshareholder.com