Midlands Minerals Corporation

Midlands Minerals Corporation

June 24, 2011 16:40 ET

Midlands Alerts Shareholders to Letter of Concern Received From Sian Goldfields Limited

TORONTO, CANADA--(Marketwire - June 24, 2011) - Midlands Minerals Corporation (TSX VENTURE:MEX)(OTCQX:MDLXF) ("Midlands" or the "Company") announces today that it received a letter today from Sian Goldfields Limited, a significant partner of the Company in the Sian Gold Project on behalf of itself and on behalf of Akroma Gold Company, another significant partner of the Company in Ghana.

The letter states:

"It has just come to the attention of the Board of Akroma Gold Company, through a public source, that a hostile takeover which would involve major material changes to the composition of Midlands Minerals Corporation has been proposed by a dissident group of Midlands shareholders. We also understand that the proposed new Board of Directors is made up of people unknown to EITHER Akroma Gold Company or to Sian Goldfields Limited, which is a significant partner in the Sian Gold Project.

It is important we bring to your notice that Sian Goldfields or Akroma Gold company will not accept any material changes of this nature without prior consultation with both companies. As you are already aware, there exists a special relationship between Akroma Gold and Sian Goldfields which is veiled in the joint venture agreement over mineral exploration in Ghana, especially the Sian Project. It is worth mentioning that we have every confidence and trust in the current management with whom we have had a good relationship over the past 5 years.

We wish to give notice to Midlands that should the hostile takeover occur on June 28, 2011, Sian Goldfields Limited intends to exercise its rights under Ghanaian law. We view this hostile takeover as a breach of trust and a clear demonstration of lack of respect for local partners, and lack of social responsibility.

Our understanding is that the new owners intend to raise majority of their financing using merits of the Sian project in Ghana. Please be advised that any proposed financing by the new entity in Midlands must not be based on the merits of the Sian Gold Project, as we intend to distance ourselves from any of their activities. Indeed, Sian Goldfields will utilize all legal remedies available to it under Ghanaian law to prevent the takeover of our gold property.

Yours truly,

Ben Kufuor, Managing Director


The Company has determined that it is in the best interests of the Company and its shareholders and the Company's relationship with its partners in Ghana to adjourn the annual and special meeting of Shareholders scheduled to be held on June 28th at 11:00 a.m. (EDT). The Company will announce by way of press release the date of the adjourned meeting after it has considered the impact of the letter and, to the extent able to do so, spoken to its partners in Ghana.


Midlands is a growth oriented and value based gold exploration company operating in Ghana and Tanzania, two stable countries with a history of gold mining. Midlands' top priority project is the fully permitted Sian gold project in Ghana. The Sian property contains Esaase and Ampeha, two previously producing open pit mines with a resource with significant growth potential. Midlands' contiguous Kwahu Praso project, which was once part of Sian, contains extensions of the Esaase and Ampeha trends. Sian and Praso are just 30 kilometres northeast of Newmont Mining's +8.7 million-ounce Akyem gold deposit.

Midlands' second priority project in Ghana is the highly prospective Kaniago gold project, which is located on the Asankrangwa Gold Belt and is contiguous to two past open pit gold producers – Abore to the north and Obotan to the south.

Midlands also holds highly prospective licences for gold and diamonds in the Lake Victoria Goldfields in Tanzania, including its advanced Itilima Gold Project, which lies within the Geita- Bulyanhulu-Sekenke Trend, which is host to over 40 million ounces in gold reserves, and has now added to its Tanzania portfolio with the acquisition of the New Kilindi-Handeni prospecting licences.

The Company has a highly qualified management and technical team with broad African experience and extensive experience in the countries in which the Company operates. For more information on the Company, please visit Midlands' website at www.midlandsminerals.com.

On behalf of the Board

Kim Harris, President and Chief Executive Officer

Certain statements contained in this news release constitute forward-looking statements. Such forward- looking statements involve a number of known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from actual results and achievements expressed or implied by such forward-looking statements. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions, which may prove to be incorrect.

The Company adds a cautionary statement to the effect that the potential quantity and grades that may be referred to in this press release are conceptual in nature. There has been sufficient exploration to evaluate a mineral resource. However, the Company is uncertain if further exploration will result in a mineral reserve. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statements were made. Readers are also advised to consider such forward- looking statements while considering the risks inherent in the business of mineral exploration. For more information, investors should review the Company's filings that are available at www.sedar.com.

The TSX Venture Exchange and OTCQX have not reviewed and do not accept responsibility for the adequacy or accuracy of the content of this news release.

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