Gulfside Minerals Ltd.

Gulfside Minerals Ltd.

April 30, 2009 17:24 ET

Gulfside Minerals Ltd.: Erdenetsogt Coal Project Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 30, 2009) - Robert L. Card, President of Gulfside Minerals Ltd. ("Gulfside" or the "Company") (TSX VENTURE:GMG), is pleased to report that the Company is now a 5% owner of the Erdenetsogt coal project as a result of a civil lawsuit filed against the vendors of the coal project. On February 18, 2009, the parties appeared in court wherein the Judge ruled in favour of the Company and awarded the Company a 5% interest in ECM LLC, which owns the underlying license under the terms of the Cooperation Agreement of June 17, 2007. The Vendors have appealed the Court verdict. In addition, the Company will be filing a new further complaint against the vendors for damages and redress for lost business opportunities and will be seeking damages and a further interest in the project license. This will be in addition to the 5% interest awarded to the Company by the courts.

The Company would like to provide some background and history.

A Cooperation Agreement was first signed in June 17, 2007 with the vendor of the Erdenetsogt coal project. During the ensuing months, the Company conducted exploration activities including the drilling of numerous holes on the coal deposit. Norwest Corp., of Salt Lake City, UT, was commissioned to oversee the drilling and prepare a National Instrument 43-101 ("NI 43-101") compliant report on the project. In the meantime, the Company had been negotiating with the vendor on a final Acquisition Agreement ("Agreement") for the project. By October 2007, the vendors had agreed that Gulfside would acquire 100% of the project for a price of US$36.2 million. There was a delay on the part of the vendor to execute the final Agreement and changes were constant. In early December 2007, Robert Card journeyed to Hong Kong to meet with the vendor to execute a final Agreement. Upon arrival, the vendor had changed his mind and signed off on a letter offering only a 49% share with the promise of 51% at a later date. However, the revised Agreement was still without signature.

In the meantime, under British Columbia Securities Commission ("BCSC") rules the Company was required to file a NI 43-101 report on the property. Although the report was substantially completed, the Company felt that for competitive reasons it did not want to reveal its findings to the public or the vendor. As a result, the BCSC issued a Cease Trade Order against the Company shares on December 21, 2007. Until the Company owned an interest in the property, Gulfside did not feel it was in its best interest to file the NI 43-101 report. Norwest Corporation has now completed the NI 43-101 report on the Erdenetsogt property, which will be filed on SEDAR once the BCSC has no objections to the filing. The Company will proceed to take the required steps of application to have the cease trade order lifted.

In late February 2008, Mr. Card met again with the vendor in Beijing, China and finally obtained an Agreement from the vendor after a change in terms which included a provision for the issuance of shares of Gulfside to the vendor in lieu of cash, along with other cash payments. This Agreement was executed and reported in our news release of March 14, 2008. However, the vendor, for reasons unknown, declined to provide information required by the TSX Venture Exchange and the Agreement languished.

In early June 2008, Mr. Card met with the vendor in Ulaanbaatar, Mongolia, in an attempt to get the stalled Agreement moving. The vendor made new and additional demands for changes in the Agreement. A revision was agreed to and the documents were redrafted by the Company's lawyers but once again the vendor would not sign off. This act led to the Company filing for an Arbitration hearing in London, UK, as provided for in the March Agreement for the 49% interest. In the meantime, the Company had numerous communications with the vendor in an attempt to get the project back on track. This did not look promising so the Company instituted legal proceedings in Mongolia, in late October 2008, based on the June 17, 2007 Agreement. One of the conditions of that Agreement was the obligation of the vendor to deliver 5% of the project to Gulfside upon paying or expending $500,000.

On January 9, 2009, Mr. Card travelled to Ulaanbaatar, Mongolia to meet the four partners/shareholders from Mongolia and Russia, who own the Erdenetsogt coal project. Meetings took place over the course of the week to discuss the terms of an acceptable Agreement. On Thursday, January 15, 2009, an agreement was reached, with all the participants present, whereby, Gulfside would acquire 100% of the project for a series of payments over 42 months totalling US$35 million. Gulfside engaged its lawyers to revise and produce a Share Purchase Agreement ("SPA") to reflect the terms of the agreed acquisition. Over the next ten days a draft SPA and other items were produced and sent to the vendors for consideration.

On January 28, 2009, a court date was pending in Ulaanbaatar to hear Gulfside's complaint, filed in late October 2008, against the vendors for non-compliance with the original Agreement of Cooperation relating to the Erdenetsogt license signed June 17, 2007. Because of the pending January 15th Agreement, the court date was put off until February 18, 2009.

The Gulfside team made numerous attempts to have the January 15, 2009 Agreement ratified but the vendors became ambiguous, changed their minds and came up with new proposals. The Company moved to accommodate the new proposals but still could not obtain a signed Agreement. The judgment in our favour was the result of the February 18, 2009 court date.

The Company intends to proceed with the Arbitration proceeding in London which resulted from the inaction of the vendor to deliver certain information to the TSX Venture Exchange in support of the Company's filing for approval of the March 7, 2008 acquisition of 49% of the company holding the shares of ECM LLC, the holder of the Erdenetsogt mineral license. The Company is confident of winning the Arbitration, which ruling is enforceable in Mongolia under International Legal Agreements.

The Company is now a 5% owner of the Erdenetsogt project and fully expects to prevail on the Arbitration in London for the 49% interest acquired under the March 7, 2008 Agreement. The Company expects it will be able to claim monetary damages or an additional share of the Project with the additional suit against the vendors to be filed in Mongolia. In the meantime, the vendors may decide to honour their many agreements and come to terms with the Company.

On behalf of the Board of Directors

Gulfside Minerals Ltd.

Robert L. Card, President

All statements, other than statements of historical fact, in this news release are forward-looking statements that involve various risks and uncertainties, including, without limitation, statements regarding the potential extent of mineralization and reserves, exploration results and future plans and objectives of Gulfside Minerals Ltd. These risks and uncertainties include, but are not restricted to, the amount of geological data available, the uncertain reliability of drilling results and geophysical and geological data and the interpretation thereof, and the need for adequate financing for future exploration and development efforts. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change except as required by securities law.

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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