SOURCE: Hidalgo Mining International

October 24, 2007 09:00 ET

Hidalgo Mining (HMIT) Announces the Spin Out of Subury Inc.

NEW YORK, NY--(Marketwire - October 24, 2007) - Hidalgo Mining International (PINKSHEETS: HMIT), an innovative mining company headquartered in Port Washington, N.Y., announced today that the Company's Board approved the spin out of Subury Inc. The Board Resolution called for the transferring of all the shares of Subury Inc., a subsidiary of HMIT, to John Darrah in exchange for the cancellation of 60 million shares held in Darrah's name.

Mark Daniel Klok, President of HMIT, stated: "The spin out of Subury is the closing of the door on HMIT's past and represents The Company's transition from only being an exploratory company to a company focused on projects with near term production potential." To quantify what this new direction potentially means to shareholder value, Mr. Klok pointed out that, "It is very hard to place a valuation on strictly exploratory companies because of their speculative nature. However, if you look at the valuation of currently producing companies, it becomes clear that the industry average trades over 40 times earning and, even without any of our anticipated acquisitions, we expect to net approximately $6.5 million in our first year of production." Instead of dwelling on past shortcomings and failed efforts by the Company, before the arrival of new management, Mr. Klok instead emphasized that he could not change the past, especially one he was not a part of, and rather chose to focus on the Company's new direction, going on to state, "Our existing projects are anticipated to yield over $8 million in revenue in the first year of production and, as the recently signed LOI with AIM reflects, we are aggressively pursuing numerous other projects with near term production potential. The AIM project could add over $3.5 million to our top line and we anticipate the closing of several similar, if not larger, acquisitions in the very near future."

Additionally, the company has announced that it is forming a special advisory board to utilize the wide range of talents and skills within Mr. Klok's network of colleagues, which will help support and guide the company into a successful future.

Hidalgo Mining International (PINKSHEETS: HMIT), an innovative mining company located in Port Washington, N.Y., strives to increase its shareholder value while implementing an aggressive rollup plan to achieve mining production on a global scale. HMIT's management and directors feel they have the vision, drive and experience to become a highly successful, major multi-national producing mining company.


This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements in this news release other than statements of historical fact are "forward-looking statements" that are based on current expectations and assumptions. These expectations and assumptions are subject to risks and uncertainty, which could affect Hidalgo Mining Internationals' future.

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