Pershimco Resources Inc.

Pershimco Resources Inc.

December 14, 2007 14:49 ET

Pershimco Resources Inc.: Clarification on the December 12, 2007 News for the Las Minitas Project

CHIHUAHUA, MEXICO--(Marketwire - Dec. 14, 2007) - PERSHIMCO RESOURCES INC. ("Pershimco" or the "Company") (TSX VENTURE:PRO) (FRANKFURT:BIZ), at the request of shareholders and stakeholders of the Company, Pershimco would like to clarify the statements made by the Company in its news release dated December 12, 2007 on the Las Minitas Project, located in the State of Sonora, Mexico.

Mr. Michael Curtis, President and CEO of Pershimco states "We've been hearing and reading all sorts of comments with regards to Pershimco's decision to drop the conditional option agreement at the Las Minitas Project, many of which are allegations of improprieties. Let me make this very clear, Pershimco's decision to drop the Las Minitas Project was notably based on technical reasons, namely:

1. Pershimco had conditionally acquired the Las Minitas Project (also termed the La Fortuna Project in the 1990's) based solely on the Company's understanding at that time that the property contained a historic silver resource. At the time of the acquisition the Company also believed the property had significant upside potential and that there was the possibility of identifying a larger silver resource on the property. The Company's subsequent due diligence and work on the property has put under serious question these understandings and beliefs.

2. A National Instrument (NI) 43-101 Technical Report completed in 2006 under the supervision of the project vendor reported a significant silver mineral resource on the Las Minitas Project.

3. Pershimco's verification and validation drilling, part of the Company's due diligence at Las Minitas, tested the two historic silver showings of El Negro or the Northwest (NW) Zone and the Las Minitas or the Southwest (SW) Zone where the silver mineral resources were reported in the NI 43-101 Technical Report.

4. Pershimco's drilling and assay results to date did not indicate a significant silver presence; however, gold appeared to be the main mineralization, turning the project into another early stage project of lesser value.

5. Pershimco also believes that there were a number of discrepancies between the technical data found in the NI 43-101 Technical Report and the Company's on-going historic data compilation, synthesis and geo-referencing studies.

6. Pershimco is currently unable to validate that the databases used in the 2006 NI 43-101 Technical Report to estimate the reported mineral resources integrated all of the data from the various historic exploration programs completed on the property in the 1990's.

7. The mineral resources reported in the 2006 NI 43-101 Technical Report did not integrate any new drill assays, and processed historic assays, which could not be validated via drilling and assaying by parties in the 1990's or Pershimco.

8. A news release issued in the 1990's, retracting a historical resource estimate at the Las Minitas Project, was not presented by the project vendor to Pershimco at the time of the acquisition. The release stated that silver assays from twinned holes at the time did not match, and were much lower than, the original higher grade silver assays, therefore implying that the historic database was not to be relied upon.

9. As a result of Pershimco's due diligence and work on Las Minitas the Company retracted all resource statements it had made regarding the property.

Mr. Curtis adds "Following discussions between the TSX Venture Exchange and Pershimco about the discrepancy in the historic assay database, Pershimco acted accordingly, dropping the Las Minitas Project. That right formed part of the conditional option agreement signed with the vendor. Pershimco simply made a business decision by opting out of the Las Minitas Project. Pershimco goal is to protect the Company, its shareholders and ultimately shareholder value. The NI 43-101 report, which was the basis of our negotiations with Tara, was seriously put into question based on the Company's subsequent due diligence on the property and also by the market authorities - a deal breaker in any scenario."

Pershimco has a current market cap of C$ 9.5 million, with C$ 3.5 million in cash. The Company has a strong management team, great partners and many promising projects. Pershimco is continuing its exploration efforts in Mexico and Quebec, and it is confident in achieving its organic growth objectives with the current Cusi, Magistral and Courville projects.

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The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements that could reflect Pershimco's objectives, estimates, expectations and the impact of acquisitions on Pershimco's financial performance. By their very nature, these types of statements involve risks and uncertainty. Consequently, reality may differ materially from Pershimco's projections or expectations.

Contact Information

    Michael Curtis
    President and CEO
    Paradox Investor Relations
    Toll Free within Canada / U.S. at 1-866-460-0408
    514-341-1527 (FAX)