GBS Gold International Inc.
NEX BOARD : GBS.H

GBS Gold International Inc.

February 18, 2009 08:44 ET

GBS Gold Update

PERTH, AUSTRALIA--(Marketwire - Feb. 18, 2009) - GBS Gold International Inc. (NEX:GBS.H) ("GBS Gold" or the "Company") provides the following update.

Today, Mr. Andrew Saker, Mr. Darren Weaver and Mr. Martin Jones of Ferrier Hodgson, the administrators (the "Administrators") of the Company's Australian group of companies (the "Group"), have mailed a circular and report to the creditors of the Group calling a meeting of creditors (the "Meeting") for February 27, 2009. The report states that:

- final bids and restructuring offers for substantially all of the assets of the Group have been reviewed and assessed;

- a preferred bidder has been selected;

- the secured creditors of the Group, including the Company's secured promissory noteholders, support accepting the conditional offer submitted by the preferred bidder; and

- it is not anticipated that sufficient funds will be available for a distribution to the unsecured creditors of the Group, including the Company.

The report does not disclose the identity of the preferred bidder nor the value, conditions or structure of the bid submitted by the preferred bidder.

Since it is likely that the conditional offer submitted by the preferred bidder may be accepted by the Administrators, the fact that the Group is insolvent and no deed of company arrangement proposal has been put forward, the Administrators are recommending that the Group's creditors resolve to place the Group into liquidation at the Meeting.

As a result, the Company does not expect to seek an extension to the existing forbearance agreement with its secured promissory noteholders. Upon expiry of that agreement, which will be no later than February 28, 2009, the Company will become insolvent and will no longer meet the minimum listing requirements of the NEX board of the TSX Venture Exchange.

A copy of the circular and report will be made available on the Administrators' website, www.ferrierhodgson.com.

For more information about GBS Gold International Inc., please email us at gbs@gbsgold.ca.

For further information regarding the Australian subsidiaries, the conduct of the Australian business or to discuss the administration process, the Administrators may be contacted at the following:



Administrator:
Mr. Andrew Saker
Partner, Ferrier Hodgson
Joint and Several Administrator
Level 26, 108 St George's Terrace
Perth, Western Australia, 6000, AUSTRALIA
Tel: +61 (0)8 9214 1444
Fax: +61 (0)8 9214 1400
Website: www.ferrierhodgson.com
Email: fhperth@perth.fh.com.au


Certain disclosures in this release, including management's assessment of GBS Gold's plans and projects, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to GBS Gold's operation as a mineral development company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: fluctuations in gold prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; general market conditions; the uncertainty of future profitability; and the uncertainty of access to additional capital. Full descriptions of these risks can be found in the Company's Annual Information Form available on the SEDAR website, www.sedar.com. Readers are cautioned not to place undue reliance on forward-looking statements. GBS Gold expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

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

Contact Information

  • GBS Gold International Inc.
    Gil Playford, Chairman and CEO
    North America
    (931) 358-2170
    Email: gbs@gbsgold.ca
    Website: www.gbsgold.com
    or
    GBS Australia Pty Ltd (administrator appointed)
    Jeff Nichols, Corporate Secretary
    Perth, Western Australia
    +61 (0)8 9492 2500