SOURCE: Franklin Mining, Inc.

May 07, 2008 08:30 ET

Franklin Reaches Agreement in Principle on Sale of Two Oil & Gas Subsidiaries

LAS VEGAS, NV--(Marketwire - May 7, 2008) - Franklin Mining, Inc. (PINKSHEETS: FMNJ) Chairman and CEO, William A. Petty, confirms that he has reached, on behalf of the Franklin Mining, Inc. Board of Directors, an agreement in principle by which the company will sell their 51% ownership in Franklin Oil & Gas, Bolivia S.A. and their 51% ownership in Franklin Oil & Gas, Argentina S.A. to a U.S.-based oil exploration and production company.

In confirming today's news, Mr. Petty stated, "It would have required an increasingly larger dedication of talent and other assets by Franklin Mining's Board and Executives to have continued managing the major gas-to-liquid projects available to our two subsidiary companies under joint-venture agreements in Bolivia and Argentina. Our equity position in the acquiring company provides a return on our investment in developing these projects without draining future resources away from our core-business of mining in Bolivia."

Following consummation of the sales agreement, Franklin Mining, Inc. will hold a projected 13.333% equity position in the new company. In addition, Franklin Mining, Inc. is to be reimbursed for all of the direct cost of developing the two subsidiaries. Subject to final legal documentation, the sales agreement will relieve Franklin Mining, Inc. of its obligation to provide either subsidiary with operating funds or contribute future capital funds. Additionally, Franklin Mining, Inc. directors and executives will maintain active roles in the oversight of existing and planned gas-to-liquid projects.

Franklin Oil & Gas, Bolivia S.A. has two Bolivian projects under Memorandum of Understanding from YPFB (Yacimientos Petroliferos Fiscales Bolivianos), Bolivia's national petroleum company. Each project is designed to assist Bolivia in developing the exportation of its natural gas assets and develop additional industrialization projects utilizing other YPFB assets.

Franklin Oil & Gas, Bolivia S.A. is not restricted by recent developments in restructuring and reallocating Bolivia's hydrocarbon assets. Franklin's Memorandum of Understanding with YPFB precedes the May 1, 2006 nationalization of gas fields and has since been reconfirmed.

Franklin Oil & Gas, Argentina S.A. has an agreement in place for construction and future operations of a gas-to-liquid (GTL) facility in the Tierra de Fuego Province of Argentina. Franklin Mining, Inc. CEO, William Petty, is currently negotiating long-term contracts to assure additional quantities of natural gas resources.

About Franklin Mining, Inc.: Franklin Mining, Inc. has mining and energy interests in the United States and Bolivia as well as energy interests in Argentina. Franklin Mining, Bolivia S.A. is a wholly owned subsidiary.

Franklin Mining, Inc. holds 51% ownership in both Franklin Oil & Gas, Bolivia S.A. and Franklin Oil & Gas, Argentina S.A.

Additional company information is available at www.franklinmining.com.

DISCLOSURES: "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements that are subject to risk and uncertainties, including, but not limited to, the impact of competitive products, product demand, market acceptance risks, fluctuations in operating results, political risk and other risks detailed from time to time in Franklin Mining, Inc.'s filings with the Securities and Exchange Commission. These risks could cause Franklin Mining, Inc.'s actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, Franklin Mining, Inc.

For further information, please visit our website (www.FranklinMining.com) or contact our Investor Relations firm, A. S. Austin & Company, 702-386-5379.

Contact Information

  • Contact:
    A. S. Austin & Company
    702-386-5379