Glencairn Gold Corporation

Glencairn Gold Corporation

November 07, 2005 16:19 ET

Glencairn suspends mining at Limon due to illegal road blockade

TORONTO, ONTARIO--(CCNMatthews - Nov. 7, 2005) - Glencairn Gold Corporation (TSX:GGG)(TSX:GGG.WT)(AMEX:GLE) reports that an illegal road blockade by a small group of employees at its Limon Mine in Nicaragua has prompted the Company to temporarily suspend operations until the issue is resolved.

On November 3, 2005, a group of approximately 20 employees blocked access to the mine's working areas. This blockade, and other intermittent blockades earlier in the year, have undermined the Company's efforts to contain costs at the mine and to put the operation on a solid, long-term footing. By suspending operations, the Company will reduce costs to a manageable level until the situation is resolved.

The group that set up the road blockade is represented by one of two unions representing the 485 hourly-rated workers at the mine. Both unions signed two-year collective agreements with the Company earlier this year. Under the terms of those collective agreements, an incentive program for unionized employees was to be negotiated. Those negotiations were successfully completed and an incentive program acceptable to all unionized employees was reached; however, the union sponsoring the road blockade has demanded that only its members be allowed to participate in the incentive program and that members of the other union be excluded. Such exclusion would be illegal under Nicaraguan law; therefore, the Company is unable to accede to that demand.

Glencairn is addressing the issues of road blockades with various departments of the Nicaraguan government in an effort to find a permanent solution to this matter.

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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.

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