SOURCE: Gondwana Energy Ltd.

November 28, 2006 16:44 ET

Gondwana Closes Purchase of FinMetal Mining OY

HELSINKI, FINLAND -- (MARKET WIRE) -- November 28, 2006 -- Gondwana Energy Ltd. (OTCBB: GNWA) is pleased to announce that today it closed on the agreement to purchase, from Mr. Peter Lofberg of Tampere, Finland, 100 percent of the issued and outstanding ordinary shares of FinMetal Mining OY, a company organized pursuant to the corporate laws of Finland.

FinMetal Mining OY owns the option to acquire a 100% interest in 4 different mineral properties known as Petrovaara, Poskijärvi-Kokka, Rautavaara and Tainiovaara along with all existing property data. This option is from Magnus Minerals Ltd., a Finnish-based company focused on advanced mineral exploration in Finland.

Magnus Minerals Ltd. has assisted in satisfying Gondwana's due diligence by supplying detailed geological reports utilizing historical data, including previous drill results for each property. Ongoing historical data analysis is being performed with the assistance of Magnus to help determine the best direction for our upcoming drill programs.

The shares of FinMetal Mining OY were acquired for a total purchase price of EUR 200,000 (Euros) and the issuance of 1 million shares of common stock of Gondwana.

Commencing with the acquisition, the Company has appointed Mr. Peter Löfberg to its Board of Directors and as the President of both Gondwana and our wholly owned subsidiary FinMetal Mining OY. The Company also intends to hold a shareholders meeting as soon as practical to change its name to FinMetal Mining Ltd., to more accurately reflect its new business direction.

"Today's announcement is a major turning point for Gondwana and an exciting new direction for the company. Our acquisition of FinMetal Mining OY positions us with an initial portfolio of advanced gold, copper and nickel properties and brings with it domestic management capable of executing on our mission to develop ore bodies in Finland. With companies such as Agnico-Eagle Mines and Talvivaara Mining Ltd.'s recent successes in both gold and nickel respectively, we believe the potential for success in Finland is strong. We now intend to expand our board of directors and appoint officers who possess the requisite experience to maximize our Finnish opportunities," stated Daniel Hunter, the company's Chairman and CEO.

Mr. Hunter continues by saying, "I am optimistic there will be additional properties of interest to FinMetal as we expand our operations in Finland. In particular, the country is believed to be one of the few underdeveloped mining areas in the world today that is capable of yielding sulphide-hosted nickel deposits. We intend to fully expand on that potential and continue to evaluate additional properties of interest to compliment today's acquisition."

On Behalf of the Board:

Daniel Hunter

Gondwana Energy Ltd.
Suite 700, One Executive Place
1816 Crowchild Trail N.W.
Calgary, AB, Canada T2M 3Y7

B: 403-313-8985
F: 403-220-1389
Disclaimer

This release contains forward-looking statements that are based on the beliefs of Gondwana Energy Ltd.'s management and reflect Gondwana Energy Ltd.'s current expectations as contemplated under section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. When used in this release, the words "estimate," "project," "believe," "anticipate," "intend," "expect," "plan," "predict," "may," "should," "will," "can," the negative of these words, or such other variations thereon, or comparable terminology, are all intended to identify forward-looking statements. Such statements reflect the current views of Gondwana Energy Ltd. with respect to future events based on currently available information and are subject to numerous assumptions, risks and uncertainties, including, but not limited to, risks and uncertainties pertaining to development of mining properties, changes in economic conditions and other risks, uncertainties and factors, which may cause the actual results, performance, or achievement expressed or implied by such forward-looking statements to differ materially from the forward-looking statements.

Contact Information

  • Contact:
    Daniel Hunter
    Gondwana Energy Ltd.
    Suite 700, One Executive Place
    1816 Crowchild Trail N.W.
    Calgary, AB, Canada T2M 3Y7
    B: 403-313-8985
    F: 403-220-1389