Concerned Shareholders of EurOmax Resources Ltd.

September 01, 2010 09:01 ET

Concerned Shareholders of EurOmax Resources Ltd. Respond to Decreasing Cash Reserves

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 1, 2010) - After reviewing the latest quarterly financial statements of EurOmax Resources Ltd. ("EurOmax") for the three months ended June 30, 2010 and other documents filed on SEDAR at under EurOmax's profile, Anthony Patriarco and Mark Gustafson (the "Concerned Shareholders") continue to be extremely concerned with the deployment of cash by management of EurOmax and the steady decline in EurOmax's cash reserves as follows:

$14.9 million US – received by EurOmax on July 16, 2009 from property sale

$10.3 million Cdn –reported cash balance as at September 30, 2009

$8.2 million Cdn –reported cash balance as at December 31, 2009

$6.6 million Cdn –reported cash balance as at March 31, 2010

$5.5 million Cdn –reported cash balance as at June 30, 2010.

It should be noted that EurOmax's June 30, 2010 cash balance will be reduced by EurOmax's legal and solicitation fees associated with the Annual General Meeting of EurOmax commenced and adjourned on August 24, 2010, which the Concerned Shareholders expect to be considerable.

In addition, EurOmax's latest quarterly financial statements include a new related party note which discloses that in August of this year, and therefore after the Concerned Shareholders commenced their solicitation of proxies seeking the replacement of the current board of directors of EurOmax, the special committee of the board authorized new consulting contracts for Christopher Serin, the Interim CEO & CFO, and Dimitar Dimitrov, the Vice President Exploration of EurOmax. Mr. Serin is currently a director of EurOmax, and both Mr. Serin and Mr. Dimitrov are nominees of management for election as director. The related party note discloses that, upon a change of control, Mr. Serin can terminate his contract to receive a severance payment of 18 months' fees and Mr. Dimitrov will receive a retention bonus of 12 months' fees if he does not terminate his contract within six months of the change of control.

Mark Gustafson states, "Given that 69 million shares voted for the dissident slate of directors at the Annual General Meeting, we are extremely frustrated with the authorization of expenditures and commitments by the current board of directors of EurOmax that are not in the shareholders' best interests. We believe that the cash reserves in EurOmax should be spent on targeted exploration activities and not for the purpose of entrenching the current board of directors and management. We intend to investigate the circumstances of these commitments and expenditures to see whether they can be avoided altogether or, if not, whether they can be recovered from the individuals that authorized them."

Neither 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.

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