Angus Mining (Namibia) Inc.

August 08, 2011 16:47 ET

Angus Mining Completes Acquisition of Silver Reef Resources

TORONTO, ONTARIO--(Marketwire - Aug. 8, 2011) - Angus Mining (Namibia) Inc. ("Angus" or the "Company") (TSX VENTURE:ANA), further to the press release on June 16, 2011, is pleased to announce that it has completed the acquisition of a 68% interest in the undiluted share capital of Silver Reef Resources Ltd. ("Silver Reef"), a privately held company incorporated under the laws of British Columbia, through the purchase of 20,500,000 units of Silver Reef from Elgin Mining Inc ("Elgin"). In consideration, Angus paid Elgin C$1,000,000 in cash and issued 4,411,764 shares at $0.34 per share. Elgin now holds a 10.7% interest in the outstanding capital of Angus on an undiluted basis. The Silver Reef units acquired by Angus each consist of one common share or Silver Reef and one warrant, 18,000,000 warrants are exercisable for $0.15 per Silver Reef Share and expire on November 12, 2012 and 2,500,000 warrants are exercisable for $0.25 and expire on November 12, 2015.

Silver Reef is a privately held precious metals exploration company with operations based in Central Nevada, USA. Silver Reef has the option to earn a 100% interest in 8 properties covering in excess of 14,000 acres, which include several small past-producing open pit mines, shafts with underground workings, and other indications of economic mineralization. All of the optioned properties have been drilled historically, and Silver Reef is in the process of compiling drilling data, and completing NI 43-101 technical reports on four of the largest claim packages.

Two of the projects, Reveille and Freiburg, supported small-scale, high-grade silver production as recently as the early 1980's, however were shut down as the result of declining commodity prices. Geotech Ltd. has completed airborne geophysical studies of both projects, which Silver Reef has used to prioritize targets for a phase 1 drilling campaign scheduled to begin in Q3, 2011.

In order to earn a 100% interest in Reveille, Silver Reef must make cash payments of up to $1.25 million by August 15, 2013, incur $7.5 million in mining work expenditures by February 13, 2014 and issue up to 5,000,000 shares upon the occurrence of certain events. The property will also be subject to certain royalties. With respect to Freiburg and other claims, Silver Reef may earn a 100% by spending an aggregate of $5 million and making certain additional cash payments and subject to certain royalties. Silver Reef has spent approximately $1 million to date in the earn-in process.

Silver Reef is managed by a team of professional Geologists including George Nicholson, a private consultant with extensive experience in intrusive related ore bodies, and Gary Deschutter, a former senior Geologist with Falconbridge and, more recently Anglo American.

Silver Reef is currently financed through the first stage of drilling at Reveille and Frieburg.

About Angus

Angus Mining (Namibia) Inc. is a Canadian based precious metals exploration company focused on developing the Ondundu Gold Project in West‐Central Namibia via a joint venture agreement with Forsys Metals Corp. The Company's goal is to deliver superior shareholder returns by identifying, acquiring and developing high quality assets in a safe and socially responsible manner. Angus Mining is committed to providing economic and social benefit to the Namibian community through the responsible development of mining assets in the Country.


Certain information set forth in this press release contains "forward-looking statements" and "forward-looking information" under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements which include management's assessment of Angus' future plans and operations and are based on each company's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as "expects" "anticipates", "believes", "projects", "plans", and similar expressions. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Angus' actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Angus undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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