Mosquito Consolidated Gold Mines Limited
TSX VENTURE : MSQ

Mosquito Consolidated Gold Mines Limited

October 03, 2012 10:52 ET

Mosquito Announces That Glass-Lewis & Co., Another Leading Proxy Advisory Firm, Recommends That Shareholders Vote for Management's Nominees on the Gold Proxy

Glass-Lewis Describes Dissidents' Quantitative Arguments as "Unfounded" and "Uncompelling"

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 3, 2012) - Mosquito Consolidated Gold Mines Ltd. ("Mosquito" or the "Company") (TSX VENTURE:MSQ) announced today that Glass-Lewis & Co. has recommended that its clients vote FOR Mosquito's nominees on the GOLD management proxy.

Glass-Lewis & Co. is a leading independent international corporate governance analysis and proxy voting firm. Glass-Lewis focuses on the long-term financial impact of investment and proxy vote decisions, assisting investors to make sound decisions regarding proxy voting decisions.

The recommendation from Glass-Lewis follows a similar recommendation from Institutional Shareholder Services Inc. ("ISS"), another leading independent proxy voting firm. Mosquito provided a summary ISS' supportive recommendation in a press release dated October 1, 2012, and available at www.mosquitogold.com.

In recommending that shareholders vote FOR Mosquito's nominees on the GOLD management proxy, Glass-Lewis noted the following*:

Regarding the factual basis of the dissidents' claims and concerns:
"Taken in sum, we find very little cause to support the Dissident's ongoing effort to assume control of the Mosquito board. As a starting point, we consider (the Dissident's) quantitative arguments generally continue to vacillate between unfounded and uncompelling, with a troubling tendency to pair vague or entirely undisclosed figures with baseless and subjective language. In our view, a robust position supported by objective and well-disclosed financial data should not, by nature, be accompanied by any specious assessments. By that standard, we consider the Dissident's position on these matters suffers greatly."
Regarding the dissidents' inability to present an original plan:
"…the Dissident continues to submit plans that are, at best, largely duplicative of existing efforts by management to advance the CuMo project. As a result, we continue to hold the view that the Dissident has offered shareholders insufficient cause to effect wholesale change at the board level at this time."
Regarding the relevance of the unfounded allegations made by dissidents:
"…an independent board committee completed a review and unanimously concluded there was no indication of improper or illegal action by Mr. McClay, and that the allegations brought by Mr. Dykes were frivolous and without foundation. In the absence of additional assessment by independent parties or successful legal action, we would advise shareholders to avoid making voting decisions based on these issues at this time." (emphasis added)

Voting Instructions

Your investment in Mosquito is at risk as a result of the dissidents' conduct. It is therefore imperative that shareholders vote only their GOLD proxy, as Glass-Lewis and ISS have recommended, in support of management's director nominees and ensure that it is received by no later than the proxy deposit deadline of Friday, October 12, 2012 at 2:00 p.m. (Vancouver time).

For assistance in voting your Shares, please contact Mosquito's Proxy Solicitation Agent, Georgeson at: 1-866-413-8828 or by email: askus@georgeson.com.

*Permission to quote Glass-Lewis was neither sought nor obtained.

Special Meeting

The Special Meeting is scheduled for Tuesday, October 16, 2012 at the Vancouver Convention Centre, West Meeting Rooms 205-7, 1055 Canada Place, Vancouver, B.C. V6C 0C3 at the hour of 2:00 p.m. (Vancouver time).

About Mosquito Consolidated Gold Mines Limited

Mosquito Consolidated Gold Mines Limited is a mining exploration and development company with a diverse portfolio of high potential precious and base metals projects, located in low political-risk environments in North America. The Company's primary focus is developing its Idaho-based CuMo project, one of the world's largest molybdenum deposits with significant copper, silver and tungsten by-products. For more information about the company, please visit www.mosquitogold.com and www.CuMoproject.com.

THE TSX-VENTURE EXCHANGE NOR ITS SERVICE PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX-VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Shareholders:
    Georgeson
    1-866-413-8828
    askus@georgeson.com

    Media:
    Trevor Zeck
    Longview Communications Inc.
    (604) 694-6037

    Joel Shaffer
    Longview Communications Inc.
    (416) 649-8006