The Concerned Shareholders of Maudore Minerals Ltd.

July 12, 2012 09:25 ET

Maudore: Time for Change

TORONTO, ONTARIO--(Marketwire - July 12, 2012) - Concerned Shareholders of Maudore Minerals Ltd. ("Maudore"), consisting of Rex Harbour, The Harbour Foundation and City Securities Limited, holders of approximately 18.4% of Maudore shares (the "Concerned Shareholders"), wish to thank fellow shareholders for the strong support demonstrated to date and remind all shareholders regardless of how many shares they own, that to ensure much needed management change occurs, they must submit their YELLOW proxies prior to and not later than Monday, July 16 at 5:00 p.m. (Toronto time).

It is unfortunate that Maudore continues to make misleading claims that the Concerned Shareholders are trying to take over the company. This is simply untrue, as the existing board knows very well. Instead, this is about unlocking the potential of a company that has been badly mismanaged as the personal empire of one man. The Concerned Shareholders are introducing a professional team that will develop a strong company that institutional investors will want to support.

The Current Tired Management and Complacent Board Must Go

Ron Shorr and his team lack the technical expertise required to ensure Maudore's growth. Maudore themselves have acknowledged this failing with their recent creation of an external (and potentially expensive) technical advisory board. The Concerned Shareholders do not see the logic of continuing to put the future of Maudore into the hands of Ron Shorr, a man of 76 years with zero years of mining experience. To date, Maudore's exploration progress has been extraordinarily slow. Unlike many companies in the resources sector that have been driving towards production as fast as possible, Maudore has not yet released a scoping study after over seven years of exploration. Exploration has also been costly, with Maudore's spending far exceeding average gold discovery costs for ASX, TSX and AIM listed companies.

The unavoidable conclusion is that the technical challenges presented by Comtois are beyond the capabilities of Ron Shorr and his team and that the existing board has not been proactive enough in pressuring the current management to deliver or doing what a strong board would do, and that is, replacing them with a professional team of experienced mining executives. This leads to the further conclusion that shareholders' funds have been wasted and that the board has been complacent in not maximizing value for shareholders.


Existing Management's Strategy: Mislead rather than Lead

In their recent press release, management continues to attempt to mislead shareholders when describing the Concerned Shareholders and their actions. To set the record straight on just a few examples:

  • The Concerned Shareholders do not wish to take over Maudore and were forced to propose an alternative slate of directors when the existing board refused to address existing management's continued failures. The Concerned Shareholders are acting to protect shareholder value for ALL holders, nothing more.

  • Other shareholders support change and the Concerned Shareholders' proposals. Maudore's second largest shareholder, Anglo Pacific Group plc, a well respected mining company listed on both the TSX and AIM, has already voted the YELLOW proxy for change and many other shareholders are following their lead.

  • The Concerned Shareholders did everything they could to avoid a proxy contest. Contrary to management's assertions, the Concerned Shareholders made concerted efforts to engage with the board regarding Ron Shorr's management of the company. Although the board recognized that problems existed, they chose to keep failing management in place. It is notable that after this decision was taken, two directors resigned and a third decided not to stand for re-election.

Ron Shorr's sole objective is to protect his position on the board of a company he controls by his managerial approach rather than acting in the best interests of the shareholders who own the company.

The spreading of false information about the Concerned Shareholders, their activities and their intentions is just another example of the underhanded tactics that have been deployed by existing management and the board to further entrench themselves. These costly manoeuvres are wasting your money and Maudore's future.


The Concerned Shareholders offer an exciting new future for Maudore

The Concerned Shareholders' director nominees will provide the leadership that has been woefully missing from Maudore for many years. Our team, led by Kevin Tomlinson and Dr. Howard Carr, have long and distinguished careers on the practical side of mining and geology, as well as in-depth knowledge of the financial aspects of the industry. Armed with our 100 day plan set out at, we are ready to hit the ground running.


Protect your investment by supporting management change

Regardless of how many shares you own, all Maudore shareholders are urged to read the information circular prepared by the Concerned Shareholders, and to seize this opportunity and vote the YELLOW proxy to ensure change.

Shareholders who have voted the management proxy and wish to support the Concerned Shareholders have the right to change their vote by simply executing a yellow proxy. As a later-dated yellow proxy replaces a previously recorded vote.

TIME IS OF THE ESSENCE, YELLOW proxies must be returned no later than Monday, July 16, 2012 at 5:00 p.m. (Toronto Time).

To keep current with all further developments and for assistance and ease with voting your YELLOW proxy, please contact Phoenix Advisory Partners at 1-800-239-6813 (toll free in North America) or 1-201-806-2222 (outside North America, banks, brokers and collect calls) or by email at We encourage all holders to visit the Concerned Shareholder website at where the YELLOW proxy can be easily voted by clicking on the "Vote Here Now" button.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements. All statements that are not clearly historical in nature or that necessarily depend on future events are forward-looking, and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. These statements are based on current expectations of the Concerned Shareholders and currently available information. They are not guarantees of future performance, involve certain risks and uncertainties that are difficult to predict, and are based upon assumptions as to future events that may not prove to be accurate. The Concerned Shareholders do not assume any obligation to update any forward-looking statements contained in this press release, except as required by applicable law. Please refer to the Concerned Shareholders' circular for further information regarding the risks of these statements.

The TSX Venture Exchange has not reviewed this release. Neither the 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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