Guyana Goldfields Inc.
TSX : GUY

Guyana Goldfields Inc.

March 22, 2006 14:24 ET

Guyana Goldfields Inc. Adopts Shareholder Rights Plan

TORONTO, ONTARIO--(CCNMatthews - March 22, 2006) - Guyana Goldfields Inc.(TSX:GUY) announced today that its Board of Directors has adopted a Shareholder Rights Plan designed to encourage the fair treatment of shareholders in connection with any take-over offer for the Corporation. The rights plan addresses the Corporation's concerns that existing Canadian legislation does not always require a take-over bid or other change of control transaction to be made to all shareholders nor does it allow sufficient time, if a take-over bid is made, for either the board of directors or the shareholders to properly consider the bid, or for the board of directors to seek alternatives to such a bid.

The rights plan will provide the Board of Directors of the Corporation and the shareholders more time to fully consider any unsolicited take-over bid for the Corporation. It will also allow more time for the Board of Directors to pursue, if appropriate, other alternatives to maximize shareholder value. The rights plan is effective immediately subject to receipt of regulatory approval. Shareholders will be asked to confirm the rights plan at the Annual and Special Meeting of the shareholders to be held on April 18, 2006.

The rights issued under the rights plan become exercisable when a person, together with any party related to it, acquires or announces its intention to acquire 20% or more of the Corporation's outstanding common shares without complying with the "Permitted Bid" provisions of the rights plan or without approval of the Board of Directors of the Corporation. Should such an acquisition occur, rights holders, other than the acquiring person and related persons, can purchase common shares of the Corporation at half the prevailing market price at the time the rights become exercisable. Each right, upon exercise, would entitle the purchase of ten shares of the Corporation for the same price as it would take to acquire five shares at market price, as defined in the Rights Plan.

Under the rights plan, a Permitted Bid is a bid made to all holders of the Corporation's common shares that is open for acceptance for not less than 60 days. If at the end of 60 days at least 50% of the outstanding shares, other than those owned by the offeror and certain related parties, have been tendered, the offeror may take up and pay for the shares but must extend the bid for a further 10 days to allow other shareholders to tender.

Commenting on the adoption of the rights plan, J. Patrick Sheridan, President and CEO of the Corporation, said "The Board considered that it was prudent to adopt a shareholder rights plan, at this time, in order to protect the rights of all shareholders. The rights plan is similar to plans adopted recently by several other Canadian companies." The directors are not aware of any specific take-over bid for the Corporation that has been made or is contemplated.

About Guyana Goldfields

Guyana Goldfields Inc is a Canadian based mineral exploration Company primarily focused on the exploration and development of gold deposits in the Guiana Shield of South America. The Guiana Shield is in the northern part of the Amazon Craton and covers parts of Guyana, Venezuela, Suriname, French Guyana and northern Brazil.

The Company holds advanced exploration projects in various stages of development and has been operating in Guyana continuously since 1996. The Company currently has approximately $11.7 million in cash and no debt.

Additional Information

Information is available on the Company's website at www.guygold.com and on www.sedar.com and through the Company's offices at:

141 Adelaide Street West, Suite 301, Toronto, Ontario, Canada, M5H 3L5.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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