Century Mining Corporation Concerned Shareholders

May 16, 2011 10:08 ET

Concerned Shareholders of Century Mining Corp. Seek to Raise Funds to Defray Expenses

TORONTO, ONTARIO--(Marketwire - May 16, 2011) -

NOT FOR DISTRIBUTION TO UNITED STATES OF AMERICA WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES OF AMERICA

The concerned shareholders (the "Concerned Shareholders") of Century Mining Corporation ("Century") have issued press releases on April 18, April 29, May 2, and May 9, 2011 setting out the reasons why the Concerned Shareholders are not prepared to vote in favour of the Business Combination as currently structured (the "Business Combination") between Century and White Tiger Gold Ltd. ("White Tiger"). Further to our previous communications, we wish to advise that the Concerned Shareholders have now received telephone contact from Fran Scola. A company controlled by Mr. Scola is described in a press release of Century dated January 4, 2010 as being an associate of a company controlled by Max Finsky, who through such company is a controlling shareholder of Century and who also controls White Tiger. The proposed Business Combination provides for an exchange ratio of 0.4 White Tiger shares for each full Century share (the "Exchange Ratio"), a ratio which the Concerned Shareholders believe does not sufficiently value Century's assets relative to those of White Tiger (please see our previous press releases in this regard). Unfortunately, Mr. Scola made it clear that White Tiger is not prepared to negotiate a different exchange ratio; it appeared to the Concerned Shareholders that the parties' motivation lay in protecting the interests of the White Tiger shareholders, including not diluting them any more than the current Exchange Ratio provides. The Concerned Shareholders' position is that the percentage ownership (and therefore the Exchange Ratio) of the combined entity should reflect the value of the assets brought to the merged company by the respective parties; since the Exchange Ratio does not reflect that the Century shareholders are bringing the lion's share of the assets to the table, the Concerned Shareholders are not able to support the proposed Business Combination (among other reasons as set out in our previous press releases).

Consequently, given this turn of events, we are seeking the financial support of our fellow shareholders in connection with our stated opposition to the proposed Business Combination. To date, the undersigned Concerned Shareholders have borne all costs associated with research as well as the publication of press releases in connection with communicating the reasons why the Concerned Shareholders do not support the Business Combination. We anticipate that expenses will increase as we continue to bring forth the concerns of the minority shareholders. We are requesting a voluntary contribution from each shareholder; please note that the Concerned Shareholders are each contributing 1/10 of a cent for each share they hold ($1 per 1,000 shares). The donated funds will be used to fund some or all of the following activities connected to communicating the Concerned Shareholders' reasons why we oppose the Business Combination:

  1. Press release dissemination fees.
  2. Legal expenses.
  3. Hiring a public relations firm.
  4. Obtaining a shareholder list from the transfer agent.
  5. Placing advertisements in national newspapers.
  6. Furnishing retainers to industry experts with respect to:
    1. obtaining an independent fairness assessment;
    2. obtaining an independent review of Century gold reserves and resources;
    3. proxy solicitation.
  7. Requisitioning a meeting of Shareholders to hold elections for the Board of Directors.
  8. Printing, mailing, teleconference and similar expenses.

The Concerned Shareholders may not undertake all of the foregoing communications and activities, and may use any donated funds for other uses incidental to, or connected with, the communications and activities indicated above at the discretion of the Concerned Shareholders upon providing further notice of such other uses. Any unused funds will be returned pro rata to the donors (unless the costs of returning them would be prohibitive relative to the amount).

In order to facilitate the deposit of funds to further the foregoing activities of the Concerned Shareholders, we have opened a bank account in the name of "Century Mining Shareholders", at TD Canada Trust, account # 30412 004 3041 5003934. Funds can be directly deposited to that account, emailed to centuryminingshareholders@gmail.com, mailed to "Century Mining Shareholders", P.O. Box 376, Millbrook Ontario, L0A 1G0, or by credit card donation via Paypal or a Paypal account, which is set up on the Stockigloo website at http://www.stockigloo.com/.

Concerned Shareholders

Richard Bowdenrichard.bowden@gmail.com
James D. Curryjdcurry@eastlink.ca
Larry E. Hooverlarryhoover@nexicom.net
Rainer G. Hummelrghum@cogeco.ca
Fred Jerrettfjerrett@shaw.ca
John Smrkejohnsmrke@yahoo.com

Contact Information