Glamis Gold Ltd.
TSX : GLG
NYSE : GLG

Glamis Gold Ltd.

June 08, 2005 17:05 ET

Glamis Gold Comments on Proposed Referendum in Guatemala

RENO, NEVADA--(CCNMatthews - June 8, 2005) - All amounts in US$

Glamis Gold Ltd. (TSX:GLG)(NYSE:GLG) commented today on reports that a referendum may be held concerning mineral exploration in the Municipality of Sipacapa, Guatemala. Glamis' Marlin gold and silver deposit is located in a separate municipality - San Miguel Ixtahuacan. All necessary permits, land and exploitation rights for the Marlin mine are in hand and this referendum will have no impact on current construction activities or future operations.

Glamis has learned that a small group of private individuals in Sipacapa are proposing to hold a referendum regarding whether or not the municipality wants future mineral development within its borders. To Glamis' knowledge, there has been no formal announcement regarding the referendum nor have details of how it will be conducted been made publicly available. The information provided herein has been gathered from various sources believed to be reliable. The key points regarding the proposed referendum are as follows:

- The referendum is reportedly scheduled for June 18. The Municipality of Sipacapa, apparently under pressure from a small group of private individuals, has ceded authority to carry out the event to this same group.

- While the text of the proposed question(s) on the referendum has not been released, Glamis understands that it will seek a vote on whether future mineral development should be permitted within Sipacapa. None of Glamis' reserves or resources are located within the boundaries of Sipacapa, although it does have exploration concessions and targets within the municipality.

- Glamis has received reports of intimidation by the referendum organizers, including threats to shut off water or burn crops of residents if they vote against the referendum. The Company understands that there will be no secret ballot, but that in the face of such threats and intimidation, organizers of the referendum intend to conduct a public vote by a show of hands. Suggestions that third parties be permitted to monitor the referendum process for fairness have reportedly been rejected by the referendum organizers.

- Glamis believes that the referendum is illegal and unconstitutional, for various reasons related to the conduct of the vote as described herein, and because Guatemalan law reserves questions of mineral tenure and access to the national government.

- Glamis understands that the referendum is being financially supported by a local NGO, and possibly two international NGOs based in the United States. Glamis assumes that these organizations are unaware of the serious shortcomings involving the proposed referendum. The Company has communicated its concerns to the NGOs regarding this apparently undemocratic and abusive process, suggesting that they should reconsider their involvement.

Based on all of these circumstances, the proposed referendum appears to be patently corrupt and if allowed to proceed, Glamis believes it will provide no reliable measure of support for mineral development activity in the Municipality of Sipacapa. Glamis supports the right of local residents to voice their opinions in a fair and democratic process, and is convinced that in a fair election a majority of the residents of both Sipacapa and San Miguel Ixtahuacan would support its activities.

Glamis Gold Ltd. is a premier intermediate gold producer with low-cost gold mines and development projects in Nevada, Mexico and Central America. Plans call for growth from 400,000 ounces of gold production in 2005 to over 700,000 ounces in 2007. The Company remains 100 percent unhedged. More information regarding Glamis can be found on its website at www.glamis.com, which is also available in Spanish by clicking on the "Glamis en Espanol" link on the home page.

Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995: Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, include, but are not limited to those with respect to, the price of gold, the estimation of mineral reserves and resources, the realization of mineral reserves estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, Glamis' hedging practices, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims limitations on insurance coverage and the timing and possible outcome of pending litigation. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", or "does not expect", "is expected", "budget", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variation of such words and phrases or state that certain actions, events or results, "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Glamis to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual results of current exploration activities, actual results of current reclamation activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of gold, possible variations in ore grade or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labor disputes and other risks of the mining industry, delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled "Other Considerations" in the Glamis Annual Information Form. Although Glamis has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

email requests for investor packets to: info@glamis.com

email questions/correspondence to: michaels@glamis.com

Contact Information

  • Glamis Gold Ltd.
    Michael A. Steeves
    Vice President, Investor Relations
    (775) 827-4600 ext. 3104
    www.glamis.com
    or
    Montana Exploradora de Guatemala, S.A
    Milton Saravia
    General Manager
    011/502-2385-6647