Medoro Resources Ltd.

Medoro Resources Ltd.

April 01, 2011 07:30 ET

Medoro Resources Announces Proposed Divestiture of Non-Core Mining Properties to Tolima Gold Corp.

TORONTO, ONTARIO--(Marketwire - April 1, 2011) - Medoro Resources Ltd. (TSX:MRS)(TSX:MRS.WT) is pleased to announce today that its wholly-owned subsidiary Medoro Resources Colombia Inc. ("Medoro Colombia"), entered into a binding letter of intent with Tolima Gold Corp. ("Tolima Gold"), a Canadian privately-owned company, pursuant to which Medoro Colombia will assign to Tolima Gold beneficial rights to 36 mining concessions, exploitation licenses and applications for mining concessions in the areas known as "Oro Fino", "La Campana", "San Bartolome" and "El Salto", located in the Antioquia and Caldas Departments of Colombia. In exchange for such assignment, Tolima will issue 5,000,000 common shares to Medoro Colombia. Closing the transaction is conditional to satisfactory due diligence, board approvals, and the execution of a formal share exchange agreement.

Mr. Augusto López is a common director of both Medoro Resources Ltd. and of Tolima Gold Corp.

Serafino Iacono, Interim Chief Executive Officer of Medoro, stated: "With the assignment of our non-core mining assets to Tolima Gold, the Company can focus its efforts and resources on developing the Marmato Project, while funding for exploration of Medoro's very prospective non-core mining assets is ensured by Tolima Gold. Through Medoro's ownership of the shares of Tolima Gold, the Company will be able to participate in the enhanced value of such non-core properties, as well as those properties held by Tolima Gold, derived from such exploration."

About Medoro Resources Ltd.

Medoro Resources Ltd. is a gold exploration, development and mining company with its primary focus being the development of a large-scale, open-pit mine at Marmato in Colombia. Medoro also has a 5% interest in the former Frontino Gold Mines Ltd. properties in Colombia with an option to increase its interest to 50%. Medoro also holds a 100% interest in the Lo Increible 4A and 4B concessions in Venezuela, as well as interests in gold exploration properties in Mali.

Additional information on Medoro Resources Ltd. can be found on the Company's website at and by reviewing the Company's profile on SEDAR at

This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to the future financial or operating performance of Medoro and its projects. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Medoro to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and Medoro disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.

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