Glencairn Gold Corporation

Glencairn Gold Corporation

May 30, 2005 08:05 ET

Glencairn reaches two-year collective agreement at Limon Mine

TORONTO, ONTARIO--(CCNMatthews - May 30, 2005) - Glencairn Gold Corporation (TSX:GGG)(AMEX:GLE) is pleased to report that it has reached agreement with the two unions that represent all hourly rated workers at its Limon Mine in Nicaragua.

The new collective agreement is for two years, the maximum allowed under Nicaraguan law, and became effective as of May 26, 2005. Key clauses call for approximately an 8% increase of basic wages and benefits over two years and a provision to operate seven days a week instead of the current six days a week. In addition, a revised production bonus based on key performance indicators will be implemented within three months of the contract being signed.

"This is the first collective agreement we have signed since acquiring Limon in late 2003," said Glencairn President and CEO, Kerry Knoll. "We have worked hard on improving labour relations over that period, and I believe this contract demonstrates the mutual trust that has developed."

Limon, an underground mine in continuous operation since 1941, produced 48,000 oz. gold in 2004. Operations at Glencairn's second mine, the Bellavista open pit mine in Costa Rica, are conducted by a mining contractor. Bellavista is expected to begin producing gold in the second quarter of 2005 and produce an average of 60,000 oz. per year, bringing the Company's total annual gold production in excess of 100,000 oz.

To find out more about Glencairn Gold Corporation, please visit our website at

FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Except for statements of historical fact relating to the company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other ecological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

Contact Information