Garrison International Ltd.

Garrison International Ltd.

September 23, 2011 19:24 ET

Garrison International Ltd.: Update on Unauthorized Transfer of Company Subsidiary

TORONTO, ONTARIO--(Marketwire - Sept. 23, 2011) - Garrison International Ltd. (TSX VENTURE:GAU) ("Garrison" or "the Company") hereby notifies its shareholders that an Introductory Motion in Damages and Permanent Injunction against Garrison International Ltd., its current and former Directors and its Legal Counsel, has been filed in the Province of Quebec. Although the company has no operations in Quebec either current or pending, the motion has been filed in the Superior Court, District of Montreal, Province of Quebec by Plaintiffs Georges Haligua Cohen and Daniel P. Neelon et al. Mr. Cohen had previously loaned Garrison Asia LLC, the Mongolian subsidiary of Garrison International Ltd., the sum of $209,000 in November 2010 and thereafter in January 2011 Mr. Cohen alleged a default and seized the shares of Garrison Asia LLC. The civil action, amongst other claims, makes allegations of fraud and claims damages of $17,301,724. This action was filed on August 10, 2011 and the Company is preparing its legal defence in response to this action.

The Company also wishes to notify its shareholders with an update in regard to its News Release of May 20, 2011 concerning its statement of the unauthorized transfer of the Company's subsidiary in Mongolia that occurred in January and February 2011, that a criminal action has been filed in Mongolia against Georges Cohen, a former Director of Garrison International Ltd, and Daniel Neelon, Counsel of Mr. Cohen, and has been assigned case number 21147156. The criminal action pending against Mr. Cohen and Mr. Neelon was filed under section 236 of the Mongolian Criminal Code which refers to "a procedure which has caused substantial damage to a business entity" and may be reviewed under Section 148 which is entitled "Appropriation of Property by Fraud" or Section 150 which is entitled "Misappropriation or Embezzlement of Property". The action is currently under investigation by the Mongolian Police. Pending the outcome of this investigation Daniel Neelon, who resides in Ulaan Baatar, cannot leave Mongolia as he is under a Police injunction. Georges Cohen has not returned to Mongolia since February 2011 when he completed the transfer of the Company subsidiary into his own name.

The Mongolian Police have directed the two parties to deliver all of the assets of Garrison Asia LLC ("Garrison Asia") into their possession until the investigation and the legal matters filed in Mongolia have been completed. To date, the Mongolian Police have taken possession of some but not all of Garrison Asia's assets which were taken by Cohen and Neelon. Thus far, Garrison Asia's company stamp as well as its exploration and mining licenses have been recovered from Daniel Neelon and placed into the possession of the Mongolian Police. Recovery of other assets, such as maps, reports and a motor vehicle, are still pending. The corporate certificates and registration papers of Garrison Asia, according to Mr. Cohen's Statement of Claim in the Quebec proceedings mentioned above, have been taken out of Mongolia and are currently held in Montreal by Mr. Cohen.

Other matters in the Mongolian court system involve a civil action which had been initiated by Mr. Cohen in Mongolia against two Directors of the Company. This action was initiated on April 26, 2011 alleging that not all of the exploration licenses held by Garrison Asia LLC were obtained by Mr. Cohen and the plaintiffs were seeking possession of any other exploration licenses held by Garrison Asia. A hearing in this matter took place on September 21st, 2011 in Ulaan Baatar in Mongolian District Civil Court. To date all exploration licenses held by Garrison Asia have been delivered to the possession of the Mongolian Police pending conclusion of the outstanding legal matters stated above. The hearing was attended by Mr. Blair Krueger, CEO of the Company. Neither Georges Cohen nor Daniel Neelon attended. The judge in the Court session reviewed the facts of the matter and determined that the case is now dismissed.

Negotiations between the parties to resolve these issues began on March 30, 2011 when Mr. Cohen submitted a letter to the Company stating that he would reverse his actions and relinquish all interest in the Company for a cash payment of $3,000,000. The Company rejected this proposal outright at that time. Discussions continued with Mr. Daniel Neelon in Ulaan Baatar, on the weekend of August 19th, 2011. At this time Mr. Neelon estimated that his client, Mr. Cohen, had loaned the Company a little over $300,000 and also owned approximately 10,000,000 shares of Garrison which have a current value of about $350,000. Also at this time, Mr. Neelon informed Garrison management that Mr. Cohen would reverse his actions in Mongolia, drop his lawsuit for $17.3 million that was filed in Quebec, drop his civil lawsuit filed in Mongolia, and would sell his debt and equity back to the Company for a cash payment of $2,000,000. In addition, Mr. Neelon, an Attorney in the United States of America and a member of the Massachusetts Bar Association, requested a payment of $250,000 from the Company to cover his legal fees from his client, which currently remain unpaid as he claims that his client has not paid him his fees due to date. The Company has once again rejected these requests and is proceeding with its own action against Mr. Cohen and Mr. Neelon under Mongolian Law.

Mr. Blair Krueger, President & CEO of Garrison says "it is regrettable that we must spend management time and resources on these matters, but we consider the motion filed in the Province of Quebec to be a frivolous attempt to distract attention from the correct jurisdiction of this matter being the courts of Mongolia. Further, we consider these actions to be inaccurate and without substance. Although Mr. Cohen, Neelon et al have accused the Directors of Garrison of fraud, in actuality we are of the opinion that the facts show the situation to be exactly the opposite."

About Garrison

Garrison is a junior mineral exploration company focused on acquiring and developing advanced stage gold properties in Mongolia. For complete details on Garrison International Ltd. and its partners, management encourages investors and interested parties to view its public documents filed on SEDAR at


No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. All statements in this news release, other than statements of historical fact, are forward-looking statements that involve various risks and uncertainties, including, without limitation, statements regarding the future plans and objectives of Garrison International Ltd. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Garrison International Ltd. assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

Shares Outstanding – 173,281,406

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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