Gulfside Minerals Ltd.
TSX VENTURE : GMG

Gulfside Minerals Ltd.

October 09, 2009 12:43 ET

Gulfside Reduces Property Payments, Closes Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 9, 2009) - Robert L. Card, President of Gulfside Minerals Ltd., ("Gulfside" or the "Company") (TSX VENTURE:GMG), is pleased to announce that the Company has renegotiated the payment terms with the two private Mongolian companies who are the vendors of three mining exploration licensees, the Onjuul coal project, as previously announced on April 30, 2009. The first installment of the purchase price of US$3.7 million will be reduced to US$1.0 million ("initial payment") and is due 60 days after TSX Venture Exchange ("TSX-V") approval. The Company has also agreed to pay US$900,000 within 10 days after completion of the Company's drill program and receipt of an updated National Instrument ("NI") 43-101 technical report or 70 days after the initial payment, which ever is the later. The first tranche of shares of 1,000,000 common shares will be increased to 2,400,000 and the 500,000 common shares due 12 months after approval and 500,000 common shares 18 months after approval will remain as previously announced.

Robert Card President and CEO of Gulfside stated, "We are very pleased with the support of the vendors of the property by reducing the initial payments and the increase in common shares. The increase in common shares demonstrates their confidence and commitment to the Onjuul coal project and we look forward to working together to make the project a success."

The Company is also pleased to report, as a result of the decrease in the initial payment, it has reduced the private placement as announced on August 10, 2009 from $8.3 million to $3.0 million. With the reduction in initial payments to the vendors the Company will have sufficient capital to complete the initial payments of US$1.0 million, a 20-hole 4,000 meter core drilling and development program on the Onjuul project and the completion of a NI 43-101 technical report of US$1.0 million and working capital of approximately CDN$0.8 million. The new payment terms and the change to the private placement are subject to the approval of the TSX-V.

Robert Card President and CEO of Gulfside stated, "We are excited about the up coming drill program and advancing the Onjuul project. After the completion of the drill program we expect to be visiting institutional investors in Europe to discuss the next phase of financing."

The Company has engaged A.I.D.D. (Australasian Independent Diamond Drilling LLC) ("AIDD") to carry out the drill program. AIDD was chosen as a highly recommended driller in Mongolia. The principals of the company have over 25 years of combined experience in diamond drilling and importantly, have extensive coal drilling experience. The Companies drill program will be under the supervision of Norwest Corporation of Salt Lake City Utah.

The drill program calls for drilling of up to 20 holes of 200-metre depth. The company will be drilling selected holes to much greater depths to test the thickness of the coal-bearing formation. Depending on the findings and the time involved, the Company may expand both the area and depth of holes to more fully evaluate the Onjuul structure. The Company will have two drill rigs operating and the drillers estimate that the program will take 45 to 60 days to complete. Upon closing of the private placement the drill crew will be mobilized to the site and commence drilling.

On behalf of the Board of Directors Gulfside Minerals Ltd.

Robert L. Card, President

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.

Neither the 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.

Contact Information