Gold Reef International, Inc.
CNSX : GRQ

August 17, 2010 14:34 ET

Gold Reef International, Inc.: Corporate Update

LONDON, ONTARIO--(Marketwire - Aug. 17, 2010) - Gold Reef International, Inc. (CNSX:GRQ) ("Gold Reef" or the "Company") updates on a number of corporate initiatives undertaken by the new management of the Company.

The Company has called an Annual and Special Meeting of Shareholders to be held on September 8, 2010. A special resolution is proposed authorizing and approving a consolidation of the common shares of the Company on a 10 old shares for 1 new share basis. A special resolution is also proposed authorizing and approving a change of the name of the Company. Should these resolutions be approved, the new proposed name of the Company is the Montana Gold Mining Company. The Company plans to borrow up to Cdn $200,000 in order to fund the initial cost of the corporate initiatives outlined within this release.

The Company has entered into an option agreement to earn a 51% interest in a gold exploration property located in the State of Montana and referred to as the Silver Bell – St. Lawrence Property (the "SBSL Property"). To earn the 51% interest the Company must spend US $250,000 in exploration by February 28, 2012 and make various payments totaling US $137,500. Two gold mines are reported to have previously operated on the SBSL Property in the late 1800's named the Silver Bell and the St. Lawrence Mines. The Company plans to commission the preparation of an NI 43-101 compliant geologic report on the SBSL Property which is expected to include recommendations for exploration. When completed, the report will be published on Sedar.

The Company has commissioned the preparation of an updated NI 43-101 compliant geologic report on the Company's Golden Trail Project, Nevada. When completed, the report will be published on Sedar.

The Company has completed the sale of the Rimrock Property, Nevada for Cdn $130,000 plus a 2% net smelter royalty. The Rimrock Property did not have an NI 43-101 compliant geologic report completed on it and was not likely to be a focus of the new Gold Reef management.

Gold Reef International Inc. is a reporting issuer in good standing in the Province of Ontario whose common shares are listed on CNSX (Symbol: GRQ). There are 42,491,040 common shares issued and outstanding in the capital of Gold Reef.

This news release contains "forward-looking information" (within the meaning of applicable Canadian securities laws) and "forward-looking statements" (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995). Such statements or information are identified with words such as "anticipate", "believe", "expect", "plan", "intend", "potential", "estimate", "propose", "project", "outlook", "foresee" or similar words suggesting future outcomes or statements regarding an outlook. Such statements include, among others, those concerning the Company's anticipated operational plans and activities including its plans to incur exploration expenditures on the Silver-Bell – St. Lawrence Property or to make other payments that would enable it to earn a 51% interest, the commissioning and completion or publication of NI 43-101 geologic reports on the Silver Bell – St. Lawrence Property and the Golden Trail Property, the borrowing of up to Cdn $200,000 to fund the initial portion of the corporate initiatives outlined herein, and the holding of the Annual and Special Shareholders meeting and the voting on the proposed resolutions.

Such forward-looking information or statements are based on a number of risks, uncertainties and assumptions which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect. Assumptions have been made regarding, among other things, management's expectations regarding its ability to complete its development work as expected. Actual results could differ materially due to a number of factors, including, without limitation, operational risks in the completion of the Company's continued development work, technical, safety or regulatory issues.

Although the Company believes that the expectations reflected in the forward-looking information or statements are reasonable, prospective investors in the Company's securities should not place undue reliance on forward-looking statements because the Company can provide no assurance that such expectations will prove to be correct. Forward-looking information and statements contained in this news release are as of the date of this news release and the Company assumes no obligation to update or revise this forward-looking information and statements except as required by law.

CNSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Gold Reef International, Inc.
    Edward Ellwood
    President & CEO
    1-866-883-8010