Dynamite Resources Ltd.
TSX VENTURE : DNR

Dynamite Resources Ltd.

August 13, 2007 17:30 ET

Dynamite Resources Shareholders Approve Acquisition of Tau Mining Limited

Highlights: - At a Special Meeting of Dynamite Resources, a special resolution was unanimously approved by Shareholders opening the way for the acquisition of 100% of Tau Mining Limited

TORONTO, ONTARIO--(Marketwire - Aug. 13, 2007) -

NOT TO BE ISSUED IN THE UNITED STATES OR TO U.S. NEWS WIRE SERVICES

Dynamite Resources Limited ("Dynamite Resources") (TSX VENTURE:DNR) is pleased to announce that its shareholders have voted unanimously to approve the previously announced plan of arrangement whereby Dynamite will (i) acquire all of the shares of Tau Mining Limited ("Tau Mining") tendered to a take-over bid offer that expires on August 16, 2007 (the "Offer"); and (ii) each subscription receipt of Dynamite Resources issued in connection with its $45 million private placement completed on June 14, 2007 will be converted into one common share and one share purchase warrant and the underlying securities will be freely tradeable under Canadian securities law. The plan of arrangement remains subject to receipt of final court approval, approval of the TSX Venture Exchange, and the tender and acquisition of Tau Mining shares pursuant to the Offer.

"We are pleased with the vote of confidence that shareholders have shown for the acquisition of Tau Mining. With this strong support, we will continue to look for additional outstanding mineral properties to add to our current portfolio", states Dynamite's Chairman, Stan Bharti.

Tau Mining has two uranium properties located in the Kyrgyz Republic, Central Asia. A drilling program will commence later this month on these properties.

Tau Mining's Uranium Properties

Tau Mining, through its 100% owned subsidiary, Long Alpha Mining Company LLC, owns 100% of the Kokomeren and Barskaun License Areas (the "Properties"), which are located approximately 90 kilometres south and 250 km southeast of Bishkek, Kyrgyzstan, respectively.

The Kokomeren and Barskaun License Areas are located within Kyrgyzstan's Tien Shan Mineral Belt, one of the most prolific uranium provinces in the world. Since exploration began in the 1940's, more than 300 uranium deposits have been recognized along the Tien Shan Mineral Belt. The region's reserves of uranium were originally mined to produce highly enriched uranium and plutonium for use in nuclear reactors and the nuclear arsenal of the former Soviet Union.

A tremendous amount of field data has been collected over the two License Areas by Soviet geologists since the early 1950's through various means, including geological mapping, trenching, detailed grab and chip sampling, diamond drilling, and geophysical and geochemical surveys.

By the 1960's, many areas of Kyrgyzstan had been subjected only to first pass reconnaissance exploration, designed to detect readily outcropping ore bodies. Uranium exploration in Kyrgyzstan was terminated in the late 1960's due to a political decision to shift production to other parts of former Soviet Union. Hence, the uranium potential for discovery of significant economic uranium deposits in Kyrgyzstan remains very high.

Kokomeren License

The Kokomeren License Area is situated on the southern slopes of the Dzhumagal Ridge in central Kyrgyzstan and occupies approximately 939 km2.

Within the Kokermeren License lies the Orto-Kuganda (K1) uranium deposit. A former Soviet Union C2 category resource, which is considered historical information and is not NI43-101 compliant, was calculated on the basis of exploration results in 1961 and is summarized as follows:

- 92,050 tonnes @ 0.127% U;

- 116.9 tonnes U total (136.8 tonnes U3O8 which equates to greater than 300,000lbs U3O8)

The regional structure that is host to the Orto-Kuganda uranium deposit extends for several kilometers in both strike directions and remains, for the most, under-explored. The setting and type of mineralization is analogous to other intrusive-related uranium deposits such as Kok-Moinok in Kyrgyzstan, Kyyktal and Charkasar in Eastern Uzbekistan, Dzhantuar (7,154 tonnes U), Koscheka, and Rudnoe in Western Uzbekistan, Rossing in Namibia and the deposits that form the Elkon district in Eastern Siberia (250,000 tonnes U).

Average uranium grades of up to 0.104%, 0.38%, 0.048%, and 0.058% are reported among the dozens of mineralized showings over the Kokomeren Licence Area. A single mineralized zone was reported to be from 40 to 45 metres long and 1.0 to 1.5 metres thick with individual channel samples running as high as 0.76% U.

Barskaun License

The Barskaun Licence Area is situated in the Issyk-Kul Lake Region of eastern Kyrgyzstan and occupies approximately 311 km2. The Barskaun Licence Area incorporates more than 20 significant uranium occurrences, as well as a large number of radiometric and geochemical anomalies. Mineralized showings within the License Area have reported uranium grades (in individual channel samples) as high as 0.45% to 0.8%.

Tau's proposed exploration program for the Kokomeren and Barskaun licenses have been reviewed by Caracle Creek International Consulting Inc and they believe the concepts are properly conceived and justified, as the potential for the presence of significant uranium mineralization including world class deposits remains high in Kyrgyzstan.

An exploration program with a budget of $4,430,000 has been proposed to further examine the Properties.

Other Opportunities in Kyrgyzstan

Tau Mining is actively pursuing additional properties in the Tien Shan Mineral Belt.

Qualified Person

The technical and scientific information in this document is based on that compiled by Caracle Creek International Consulting Inc ("CCIC") and has been reviewed by Iain Kelso, P.Geo., Technical Manager with CCIC Canada and qualified person under NI43-101.

Cautionary Note Regarding Forward-looking Information

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the future financial or operating performance of the Company, its subsidiaries and its projects, statements regarding exploration prospects, statements regarding the potential and financial impact of the proposed transaction, the terms and conditions of the acquisition, receipt of requisite approvals and the execution of definitive agreements, the benefits of the proposed acquisition, the identification of mineral reserves and resources, costs of and capital for exploration projects, exploration expenditures, timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; acquisition risks, the actual results of current exploration activities; delay or failure to receive board or regulatory approvals; timing and availability of external financing on acceptable terms; the business of Dynamite and Tau Mining not being integrated successfully or such integration proving more difficult, time consuming or costly than expected, not realizing on the potential benefits of the proposed transaction; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of mineral prices; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and shortages and other risks of the mining industry; and, delays in obtaining governmental approvals or required financing or in the completion of activities. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OF THIS RELEASE.

Contact Information

  • Dynamite Resources Limited
    Stan Bharti
    Chairman
    (416) 861-1685