Glen Eagle Resources Inc.

Glen Eagle Resources Inc.

May 14, 2009 09:00 ET

Glen Eagle Provides Clarification on Its Investment

MONTREAL, QUEBEC--(Marketwire - May 14, 2009) - Glen Eagle Resources Inc. (TSX VENTURE:GER) ("Glen Eagle Resources" or the "Company") would like to clarify the legal structure for funds being advanced to Kinbauri Espana S.L. ("Espana") and how anticipated profits will be repatriated to the respective parties. Based on inquiries, we understand that the press releases issued by both parties may have lacked clarity as to these issues. The following is an explanation to clarify the structure of the transaction with Kinbauri:

The investment by Glen Eagle in Espana is structured in part as share capital and in part as loan. Similar to Glen Eagle, Kinbauri has also advanced development funds to Espana in the form of share capital and loans. With this structure, both Glen Eagle and Kinbauri can repatriate positive cash flow to Canada from Kinbauri Espana with a minimum of withholding tax, maximizing monetary benefits to Kinbauri, Glen Eagle and their shareholders.

All loans are non-recourse, meaning that neither Kinbauri nor Glen Eagle can make a call on their loans or demand loan payments. The agreements restrict loan repayments to positive cash flow generated from Espana's operations; further to be authorized by the Board of Espana. Funds applied by Kinbauri and Glen Eagle toward loan repayments should not be taxed in Canada. Cash or kind will only be distributed to Glen Eagle and Kinbauri in the ratio of their participating interest, whether it be by dividend or loan repayment; i.e. 55% Kinbauri: 45% Glen Eagle or 50% Kinbauri: 50% Glen Eagle, or as the case may be.

Forward-Looking Statements

This news release contains discussion of items that may constitute forward-looking statements within the meaning of securities laws that involve risks and uncertainties. Although the company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurances that its expectations will be achieved. Factors that could cause actual results to differ materially from expectations include the effects of general economic conditions, actions by government authorities, uncertainties associated with contract negotiations, additional financing requirements, market acceptance of the Company's products and competitive pressures. These factors and others are more fully discussed in Company filings with Canadian securities regulatory authorities.

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

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