Forbes & Manhattan Inc.

Forbes & Manhattan Inc.

April 08, 2009 17:18 ET

Forbes & Manhattan Announces Acquisition of Significant Australian Gold Assets

TORONTO, ONTARIO--(Marketwire - April 8, 2009) - Forbes and Manhattan, a private Canadian merchant bank ("Forbes" or "The Company"), is pleased to announce it has executed a Heads of Agreement ("HOA") in connection with its proposed acquisition of a number of past producing gold assets in Australia, specifically in the Northern Territory and Western Australia. These assets will be held by Crocodile Gold Inc., a newly incorporated private company, through its 100% owned subsidiary Crocodile Gold Australia Pty Ltd. ("CGA").

The assets comprise the Burnside and Tom's Gully Projects in the Northern Territory, and the Nicolson's Project in Western Australia. The former two projects include mines which were producing as recently as September 2008 at an annualized production rate of approximately 140,000 ounces of gold at a cash cost (at current exchange rates) of approximately US$550 per ounce. Total JORC compliant resources have most recently been stated as 4.5 million ounces (in publicly available independent technical reports as filed by the previous operator). The assets were purchased out of administration through a tender process directed by Ferrier Hodgson of Perth, Australia (the "Administrator").

The total purchase price will be AUS$51 million (US$36 million), payable in instalments over a 12 month period. The transaction will be subject to certain conditions including Foreign Investment Review Board approval in Australia, and transfer of tenement title to CGA.

The Burnside and Tom's Gully Projects are located 90 - 285 kilometres south of Darwin and were most recently owned and operated by GBS Gold International Inc. (previously a public company listed on the Toronto Stock Exchange ).

In making this announcement, Forbes Chairman and CEO, Stan Bharti, stated "We are thrilled with this transaction and with these assets and look forward to placing them back into production this year. The projects have the potential to make a meaningful contribution to the economy of the Northern Territory and we believe the assets provide us with an excellent base from which to develop additional opportunities."

REGULATORY FOOTNOTE

Mr. Alf Gillman, is the "Qualified Person" as defined under National Instrument 43-101 and is responsible for the technical disclosure in this news release.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking information is identified by words such as "estimates", "intends", "expects", "believes", "may", "will" and includes, without limitation, statements regarding the Company's plan of business operations, production levels and costs, potential contractual arrangements and the delivery of equipment, receipt of working capital, anticipated revenues, mineral reserve and mineral resource estimates, and projected expenditures. These statements are based on management's current expectations and beliefs and there can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, risks inherent in the mining industry, financing risks, labour risks, uncertainty of mineral reserve and resource estimates, equipment and supply risks, regulatory risks and environmental concerns. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update public forward-looking information, whether as a result of new information, future events or otherwise.

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