Goldeye Explorations Limited

Goldeye Explorations Limited

October 15, 2010 13:21 ET

Goldeye Establishes Shareholders Rights Plan

TORONTO, ONTARIO--(Marketwire - Oct. 15, 2010) - Goldeye Explorations Limited ("Goldeye") (TSX VENTURE:GGY) wishes to announce that it has established a Shareholder Rights Plan (the "Rights Plan") to ensure fair treatment for all shareholders in the event of a take-over bid and to provide shareholders and Goldeye's Board of Directors with adequate time to evaluate any bid for the Goldeye and the opportunity to maximize shareholder value in the event of any such bid. Under the Rights Plan, one right will be issued and will attach to each outstanding Common Share of Goldeye. A Right only becomes exercisable upon the occurrence of a Flip-In Event, which is a transaction by which a person becomes an Acquiring Person and which otherwise does not meet the requirements of a Permitted Bid. An Acquiring Person is generally a person who becomes the beneficial owner of 20% or more of the outstanding common shares of Goldeye. The result of this provision is that, in the event a Flip-in Event occurs, subject to all other provisions of the Rights Plan, each right will constitute the right to purchase from Goldeye ten (10) additional Common Shares at 50% of the market price at the time of the Flip-in Event. This purchase could cause substantial dilution to the person or group of persons attempting to acquire control of Goldeye, other than by way of a Permitted Bid. The Rights expire on the termination of the Rights Plan, unless redeemed before such time. If a Take-over Bid is structured as a Permitted Bid, a Flip-In Event will not occur and the Rights will not become exercisable. Permitted Bids must be made by means of a Take-over Bid circular and comply with certain provisions which the directors believe will ensure compliance with the objectives of the Rights Plan. The shareholders of Goldeye approved the Rights Plan at the annual and special meeting held on June 8, 2010, subject to the approval of the TSX Venture Exchange which has advised Goldeye that it does not object to the Rights Plan. The full text of the Rights Plan is available from the Corporate Secretary of Goldeye.

About Goldeye

Goldeye is a Canadian gold-focused exploration company with properties in mineral-rich and politically secure jurisdictions with long traditions of mining (Canada and Chile). Goldeye's approach is to advance precious metal deposits to the development stage, employing, in part, technologically advanced geophysical techniques and occasionally joint venture funding. Goldeye is currently predominantly pursuing gold exploration on its Tyrrell property in the Shining Tree area of Ontario. A 10,000 metre diamond drilling program planned to begin mid-month is expected to be half completed by Christmas.

For further information regarding Goldeye or this press release, please contact Blaine Webster, C.E.O and President at (905) 731-9367 or (905) 886-2538 or e-mail Goldeye's web-site address is

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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