Gleichen Resources Ltd.

Gleichen Resources Ltd.

March 01, 2010 19:00 ET

Gleichen Reports Audited Year End Results

TORONTO, ONTARIO--(Marketwire - March 1, 2010) -

(All amount expressed in Canadian Dollars unless otherwise stated)

Gleichen Resources Ltd. (the "Company") (TSX:GRL) announced today its audited results for the year ended October 31, 2009.


-- The net loss for the year ended October 31, 2009 was $1,029,286 or $0.04
per common share compared with $289,094 or $0.01 per common share for
the year ended October 31, 2008. The increased activity related to the
acquisition of the Morelos Gold Project was the primary reason for the
increase in net loss year over year.

-- As at October 31, 2009, the Company had $4,388,064 of cash on hand and a
working capital position of $3,920,995. Subsequent to the year-end the
Company completed two equity offerings related to the acquisition of the
Morelos Gold Project as described below which significantly increased
its cash position. As a result, the Company is well funded to carry out
exploration programs and normal corporate activities.


-- On August 6, 2009, the Company entered into an agreement to acquire an
indirect 78.8% of the Morelos Gold Project from certain subsidiaries of
Teck Resources Ltd. ("Teck") and on October 14, 2009 the Company entered
into an agreement to raise approximately US$200,000,000 in a fully
marketed private placement in connection with funding such acquisition.
The Company closed these transactions subsequent to the year-end.

-- On November 12, 2009, the Company completed a private placement of
241,500,000 special warrants (the "Special Warrants") issued at a price
of $1.00 per Special Warrant for gross proceeds of $241,500,000. Each
Special Warrant was exercisable for no additional consideration to
acquire one unit comprised of one common share in the capital of the
Company and one-quarter of one common share purchase warrant. The
Company received net proceeds of approximately $228.2 million related to
this transaction.

-- On November 16, 2009, the Company completed an acquisition of 78.8% of
the Morelos Gold Project from Teck for a purchase price of
US$150,000,000, the issuance of 1,560,857 common shares, and the
issuance of 12,443,218 special warrants.

-- On February 24, 2010, the Company completed a second private placement
of 50,000,000 common shares issued at a price of $1.00 per common share
for gross proceeds of $50,000,000. After deducting the agents' fees and
expenses of the offering, the Company received net proceeds of
approximately $47.2 million.

-- On February 24, 2010, the Company acquired, from a subsidiary of
Goldcorp Inc., the remaining 21.2% of the Morelos Gold Project, for
$52,000,000. As a result of this transaction the Company now holds 100%
of the Morelos Gold Project, through a wholly-owned subsidiary.

-- On February 24, 2010, the Company began trading its common shares and
certain of its common share purchase warrants on the Toronto Stock
Exchange and delisted its common shares from the TSX Venture Exchange.

Gleichen Resources Ltd., is a well funded, growth oriented Canadian mining company engaged in the exploration and development of precious metal resources with a focus on gold. It owns 100% of the Morelos Gold Project, an advanced stage gold exploration property, located 180km southwest of Mexico City. The Company's Board of Directors has approved a change of the Company's name to Torex Gold Resources Inc., pending approval at its next annual and special meeting of shareholders.


This press release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information with respect to the future exploration and development plans concerning the Morelos Gold Project, the adequacy of the Company's financial resources, business plans and strategy and other events or conditions that may occur in the future. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including risks associated with the exploration, development and mining industry generally such as economic factors as they effect exploration, future commodity prices, obtaining financing, market conditions, changes in interest rates, actual results of current exploration activities, government regulation, political, social or economic developments, environmental risks, insurance risks, capital expenditures, operating or technical difficulties in connection with development activities, personnel relations, the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of resources and reserves, contests over property title, and changes in project parameters as plans for the Morelos Gold Project continue to be refined as well as those risk factors included herein and elsewhere in the Company's public disclosure. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect.
Although the Company believes that the assumptions and expectations reflected in such forward-looking information are reasonable, undue reliance should not be placed on forward-looking information because the Company can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this MD&A, assumptions have been made regarding, among other things: the Company's ability to carry on its exploration and development activities planned for the Morelos Gold Project, the timely receipt of any required approvals, the price of gold, the ability of the Company to obtain qualified personnel, equipment and services in a timely and cost-efficient manner, the ability of the Company to operate in a safe, efficient and effective manner, the ability of the Company to obtain financing on acceptable terms, the accuracy of the Company's resource estimates and geological, operational and price assumptions on which these are based and the regulatory framework regarding environmental matters. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information contained herein is presented for the purposes of assisting investors in understanding the Company's expected financial and operating performance and the Company's plans and objectives and may not be appropriate for other purposes. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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