Simberi Gold Corporation

Simberi Gold Corporation

May 18, 2006 09:58 ET

Simberi Gold Corporation: Press Release

TORONTO, ONTARIO--(CCNMatthews - May 18, 2006) - Simberi Gold Corporation (TSX VENTURE:SAU)("Simberi") - Simberi is pleased to announce that is has now completed the acquisition of 100% of the outstanding common shares of the New Congo Resource Development Company Inc. ("NCDC").

NCDC, a Canadian corporation, was established in 2004 as a new mineral exploration and development business to exploit initially certain copper and cobalt deposits called the Kakanda and Kambove deposits in the Democratic Republic of Congo (the "DRC") (the "Kakanda Project"). PTM Minerals (Cayman) Ltd. ("PTM Minerals"), a Cayman Islands domiciled mineral exploration and development company, established the Kakanda Project in 1997. NCDC acquired all of the outstanding shares of PTM Minerals in 2004. Pursuant to an agreement between PTM Minerals and Gecamines, the state owned copper mining company in the DRC, the parties agreed to enter into a joint venture to operate the Kakanda Project. Currently, PTM Minerals and Gecamines each have the right to participate in the joint venture on a 51% and 49% basis, respectively.

Simberi, previously the owner of 67% of the outstanding shares of NCDC, acquired the remaining 33% from Quartern Holdings Inc. ("Quartern") following receipt of acceptance for the transaction from the TSX Venture Exchange. Exchange acceptance was granted upon Simberi providing, amongst other things, satisfactory support confirming Simberi's legal interest in the Kakanda Project. Simberi completed the acquisition from Quartern through a payment by Simberi to Quartern of $100,000 in cash and the issuance by Simberi to Quartern of 8 million common shares of Simberi. In addition, Quartern has entered into a consulting agreement with Simberi and NCDC pursuant to which Quartern will, amongst other things, assist in the continuing the development of the Kakanda Project. Pursuant to the terms of the consulting agreement, Quartern will also be entitled to receive an additional 3.9 million common shares of Simberi upon successfully increasing PTM Minerals' (Simberi's) interest in the Kakanda Project from 51% to 75% or more.

All shares issued pursuant to these transactions will be subject to a four month hold period from the date of issuance.

About Simberi

Simberi is a junior resource company focused on the exploration and acquisition of advanced exploration projects for precious and base metal projects internationally. The company's primary project is the Kakanda copper cobalt project in the DRC. The company's objective is to aggressively explore the potential for investing in a number of precious and base metal properties with the aim to become a metal producer.

This press release includes certain "Forward-Looking Statements" within the meaning of the US Private Securities Reform Act of 1995. Other than statements of historical fact, all statements are "Forward-Looking Statements" that involve such various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these "Forward-Looking Statements". All dollar amounts are Canadian dollars unless otherwise noted.

Neither the TSX Venture Exchange, nor any other securities regulatory authority has approved or disapproved of the contents of this news release.

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