SOURCE: Eastern Goldfields, Inc.

January 21, 2011 12:52 ET

Eastern Goldfields, Inc. Announces Completion of Spin-Off of Vantage Goldfields Limited

SAN DIEGO, CA--(Marketwire - January 21, 2011) -  Eastern Goldfields, Inc. ("EGI") today announced the completion of its previously announced spin-off of Vantage Goldfields Limited ("VGO"), a gold mining and exploration company domiciled in Australia with operations in South Africa. The spin-off was effected through the distribution of VGO ordinary shares to EGI's shareholders. EGI shareholders are entitled to receive six VGO ordinary shares for each share of EGI common stock that they own. Before the spin-off, VGO was a wholly owned subsidiary of EGI. As a result of the spin-off, EGI shareholders will become shareholders of VGO directly and EGI will no longer own any VGO shares. 

The spin-off was undertaken pursuant to an exemption from registration under United States securities laws. Neither the spin-off nor the VGO shares have been registered with the United States Securities and Exchange Commission. Accordingly, the VGO shares issued in connection with the spin-off are deemed restricted under United States federal securities laws. 

FORWARD-LOOKING STATEMENTS

This press release contains "forward-looking statements." These are statements concerning plans, objectives, goals, strategies, expectations, estimates, intentions, projections, developments, future events or performance, underlying (expressed or implied) assumptions and other statements that are other than historical facts. In some cases, forward-looking statements can be identified by the use of forward-looking words such as "believes," "expects," "may," "will," "should," "anticipates" or comparable words, or by discussions of plans or strategy that involve risks and uncertainties. Management cautions the reader that these forward-looking statements, including, but not limited to, statements regarding EGI's plans, goals, estimates, assumptions and business strategy and other matters that are not historical facts are only predictions. No assurances can be given that such predictions will prove correct. Actual events or results may differ materially either because one or more predictions or assumptions prove to be erroneous or as a result of other risks facing EGI. Forward-looking statements should be read in light of the cautionary statements and risks that include, but are not limited to, the risks associated with a small company, a decline in the price of gold, adverse labor conditions in the mining labor market in South Africa, the intense competition EGI faces from others and technological changes. Any one or more of these or other risks could cause actual results to differ materially from the future results indicated or implied in such forward-looking statements. EGI undertakes no obligation to update or revise any forward-looking statement to reflect events, circumstances or new information after the date of this press release or to reflect the occurrence of unanticipated or other subsequent events.

Contact Information

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    William M. Aul, Esq.
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