Goldstone Resources Inc.

Goldstone Resources Inc.

October 06, 2010 16:30 ET

Goldstone Comments on Litigation

TORONTO, ONTARIO--(Marketwire - Oct. 6, 2010) - Goldstone Resources Inc. (TSX:GRC) (PINK SHEETS:GRSZF) announced today that Mr. Gary Conn and his management services company have commenced a legal action against the Company for alleged breach of a consulting agreement or, alternatively, wrongful dismissal and other causes of action. Mr. Conn is seeking damages of up to approximately $3.4 million, plus costs and interest.

Goldstone dismissed Mr. Conn for cause on October 1, 2010. The Company strongly believes that Mr. Conn's claims are without merit and the Company intends to vigorously defend the action. The Company expects that one or more other former employees will also commence legal actions against Goldstone.

"Goldstone does not consider these legal matters to be material and will not be distracted by them", stated Mr. Philip Cunningham, Chairman and Interim CEO. "Counsel will be asked to respond, and the Executive Committee and management will remain focused on our goal of enhancing shareholder value. Unless legally required to do so, Goldstone will have no further comment on these frivolous claims".

Further information is available on the Company's website at and on SEDAR under the Company's profile at

About Goldstone

Formed by a late 2009 merger of Ontex Resources and Roxmark Mines, Goldstone Resources is a well funded gold exploration and development company operating in the historically significant Geraldton-Beardmore camp of Northwestern Ontario and focused on gold exploration and deposit delineation at its 100%-owned Key Lake, Brookbank, Northern Empire and Leitch-Sand River gold properties—in addition to its 30% carried interest in the Hardrock Project joint venture with Premier Gold Mines Ltd. A preliminary economic assessment of the Brookbank deposit is being finalized by Micon International. The Camp is host to several past producers in a district that has historical production of more than 4.1 million ounces of gold from high grade ore.

Forward-Looking Statements

This news release may contain forward-looking information under applicable securities laws concerning Goldstone's business, operations, financial performance, condition and prospects, as well as management's objectives, strategies, beliefs and intentions. Forward looking information is frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "intend" and similar words referring to future events and results, including in respect of the Executive Committee's goal of enhancing shareholder value and the belief that the Company will be successful in respect of the legal claims referred to above. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary materially include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, delay or inability to raise additional financing on satisfactory terms, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions and changes in conditions in the financial markets. Readers are cautioned not to place undue reliance on this forward-looking information as actual results may differ materially from those expressed or implied in the forward looking information. Goldstone does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.

Contact Information

  • Goldstone Resources Inc.
    Philip Cunningham
    Chairman and Interim CEO
    (647) 401-8965