Malaga Inc.
TSX : MLG

Malaga Inc.

May 20, 2011 13:52 ET

Malaga Says it is Not Aware of Any Undisclosed Development That Would Account for Recent Trading Activity

Malaga also announces the beginning of a new drilling campaign at the Pasto Bueno tungsten mine in Peru

MONTREAL, QUEBEC--(Marketwire - May 20, 2011) - At the request of market surveillance on behalf of the TSX, Malaga Inc. (TSX:MLG) says it is not aware of any undisclosed development that would account for the unusual share trading of the last three days.

Malaga also announces that a new drilling campaign is starting at its Pasto Bueno tungsten mine in Peru. The program will start in the southern part of the property and mainly in the mantos. The objective is to increase the reserves and resources of the property.

Jean Martineau, Chairman and CEO of Malaga commented: "There are no material changes in the company's operations or underlying fundamentals that can explain the increased trading activity. The company's operations are proceeding as planned and we are benefiting from the ongoing record increase in the price of tungsten on the world market. The tungsten market remains very tight and reached an all time high of $460 per MTU of APT, representing a year-on-year increase of more than 100%".

ABOUT MALAGA INC.

Malaga Inc. owns and operates a mine in Peru and is one of the few producers of tungsten outside of China. Malaga is a low cost producer due to the availability of hydroelectric power at its Pasto Bueno property in Peru. Future plans are to increase production and explore the property to increase reserves and resources.

FORWARD‐LOOKING STATEMENTS

Certain statements in the foregoing may constitute forward‐looking statements which involve known and unknown risks, uncertainties and other factors that may cause Malaga's actual results, performance or achievements or industry results to be materially different from any future result, performance or achievement expressed or implied by such forward‐looking statements. The information provided reflects management's current expectations regarding future events and performance as of the date of this news release.

Contact Information

  • Malaga Inc.
    Jean Martineau
    Chairman of the Board and Chief Executive Officer
    514-288-3224

    Pierre Monet
    President
    514-288-3224

    Sun International Communications
    Nicole Blanchard
    Corporate Strategy and Investor Relations
    450-973-6600