Gallery Resources Limited
TSX VENTURE : GYR

Gallery Resources Limited

October 13, 2005 14:34 ET

Gallery Resources Provides Additional Information Regarding the Suspension of Trading

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 13, 2005) - Gallery Resources Limited (the "Company") (TSX VENTURE:GYR) of Vancouver, B.C. is issuing this news release to clarify the August 29, 2005 news release and to provide shareholders with additional information regarding the trading halt and subsequent suspension of the trading of the shares of the Company through the facilities of the TSX Venture Exchange (the "Exchange").

The trading halt and subsequent suspension is related to an ongoing compliance review of the Company by the Exchange and the alleged failure of the Company to file satisfactory responses and documentation relating to the review within the time periods required by the Exchange. It is the Company's view, the time period imposed by the Exchange in their correspondence dated July 21, 2005 was unreasonable and did not provide the Company with sufficient time to respond in order to prevent the trading halt imposed on August 15, 2005. The main focus of the compliance review is the reimbursement of expenses to related parties and the appointment of two independent directors to replace Mr. Dale Pope and Mr. Brian Cawley, two long-term directors who resigned effective August 3, 2005.

Despite the short time frame imposed by the Exchange, on August 29, 2005 the Company appointed Mr. Art Den Duyf of Whistler, BC and Mr. Byron L. Novosad of Sugar Land, Texas as directors of the Company and provided the Exchange with some of the financial information relating to the reimbursement of related party expenses for the 2003-2005 fiscal years.

The Company recently achieved its option earn-in expenditure requirements on the Shabagomo Project resulting in a 50/50 joint venture with BHP Billiton. The trading halt and subsequent suspension has had an extremely detrimental effect on the Company, interrupting its field operations and impairing its ability to raise the additional capital necessary to continue its exploration programs for this year.

It appears to the Board that the Exchange is not prepared to consider lifting the trading suspension until the completion of the compliance review. As a result, the Company and its board of directors have determined that it would be more practical to apply to list the Company on the CNQ. CNQ is an innovative new stock exchange in Canada for trading the equity securities of emerging companies. The Company filed an application on September 9, 2005 to obtain a listing on CNQ.

The Company has also commenced the preparation of a Form 20-F to be filed with the U.S. Securities & Exchange Commission to obtain registration of the Company's shares in the United States and to obtain the necessary approvals so that the Company's shares may trade through the facilities of the OTC Bulletin Board market.

Bruce Costerd, President & C.E.O.


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information