Mundoro Capital Inc.
TSX VENTURE : MUN

Mundoro Capital Inc.

August 20, 2012 07:00 ET

Mundoro Receives Support from Leading Independent Proxy Adviser Institutional Shareholder Services (ISS) for Management's Board Nominees

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 20, 2012) - Institutional Shareholder Services (ISS), a leading independent proxy advisory firm, has recommended that shareholders of Mundoro Capital (TSX VENTURE:MUN) vote in favour of the management slate of board nominees at Mundoro's upcoming annual and special meeting.

The ISS report endorses the current board's strategy of lowering Mundoro's risk profile by reducing its exposure to China and acquiring exploration properties in promising mineral belts in Serbia and Mexico. Mundoro sold 95% of its interest in the Maoling gold project in China in October 2011.

ISS notes that these initiatives "have started to appear to have some positive effects as seen in the reduction of SG&A (selling, general and administrative) cost over the past five years and the TSR (total shareholder return) outperformance since the sale (of the Maoling stake). In addition, the overall governance structure of the current board appears to be reasonable."

ISS concludes that "the dissidents have not made a compelling case that a change to the board is necessary at this time. Therefore, votes FOR management nominees are warranted."

The report notes that:

  • Since Mundoro began diversifying away from China, its shareholder return has outperformed the S&P/TSX materials sub-index by 27%.
  • Annual SSG&A cost has dropped from $4.37 million to $1.46 million over the last five years.
  • Three-quarters of the current board members are independent.
  • Key board committees are wholly comprised of independent directors.
  • Directors' meeting attendance was 100% in 2011.
  • "Cash compensation is conservative and overall pay appears to be aligned with performance."

The report also endorses Mundoro's adoption of an advance notice provision "as this ensures that all shareholders including those voting by proxy will have adequate time to evaluate potential nominees to the board of directors."

Welcoming ISS's findings, Teo Dechev, Mundoro's CEO and President, said: "We are grateful for the many messages of support we have received, and look forward to continuing the transformation that we have started for the benefit of all shareholders. We are confident the current strategic direction will bring value to shareholders as we have already demonstrated significant progress in the company's new strategic focus."

Setting the Record Straight

John Hoey, Mundoro's Chairman: added in response to a press release issued by the dissident shareholder, Northern Minerals Investment Corp. (NMI), on August 17, 2012:

"As the independent ISS report demonstrates, the dissident would bring neither a coherent plan nor the required board and management skills to Mundoro.

"The company has never offered Mr. John King Burns, a dissident nominee, a seat on the board. Mr. Hong Jun Lee (Allen Li), the dissident leader, was offered a board seat early in the process, which he declined and instead proposed his two nominees.

"While we have tried to offer reasonable compromises, Mr. Li has persisted in making unreasonable demands. We have been fully transparent in our actions and our efforts to act in the best interests of the company and its shareholders, as has been confirmed by the BC Supreme Court and more recently by ISS, an independent group. ISS provides comprehensive analyses of proxy issues and complete vote recommendations for more than 40,000 meetings in over 100 worldwide markets.

"We are confident that the majority of shareholders will agree with our position which is based on best corporate governance practices."

Note to Mundoro Shareholders

Mundoro shareholders will elect directors for the coming year on Monday, August 27, 2012, at 11:00 a.m. (Vancouver time).

You are urged to vote your GOLD proxy ahead of the DEADLINE OF 11 A.M. (VANCOUVER TIME) ON THURSDAY, AUGUST 23, 2012.

If you have already voted a blue proxy, you may revoke that vote in favour of a GOLD proxy up to the cut-off time.

If you have any questions and/or need assistance in voting your shares, please call Laurel Hill Advisory Group at 1-877-304-0211 (toll free) or 1-416-304-0211 (collect calls accepted) or e-mail assistance@laurelhill.com.

About Mundoro Capital Inc.

Mundoro is a Canadian based company which operates as a mineral acquisition, exploration, development and investment company. The Company's target areas are the Tethyan belt in South Eastern Europe and the Meso Central Belt in Northwestern Mexico, both of which are prolific mineral belts the Company believes have strong exploration and development potential. The Company maintains an interest in the Maoling Gold Project through its 5% interest in Mundoro Mining Inc.

Caution Concerning Forward-Looking Statements

Information included, attached to or incorporated by reference into this News Release may contain forward looking statements. All statements, other than statements of historical fact, included or incorporated by reference in this News Release are forward-looking statements, including, without limitation, statements regarding activities, events or developments that the Board expects or anticipates may occur in the future. These forward-looking statements can be identified by the use of forward-looking words such as "will", "expect", "intend", "plan", "estimate", "anticipate", "believe" or "continue" or similar words or the negative thereof. The material assumptions that were applied in making the forward looking statements in this News Release include expectations as to the Company's future strategy and business plan and execution of the Company's existing plans. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur. We caution readers of this News Release not to place undue reliance on forward looking statements contained in this News Release, which are not a guarantee of performance and are subject to a number of uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include general economic and market conditions, changes in law, regulatory processes, the status of Mundoro's assets and financial condition, actions of competitors and the ability to implement business strategies and pursue business opportunities. The forward-looking statements contained in this News Release are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this News Release are made as of the date of this News Release and the Board undertakes no obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise, except as required by law. Shareholders are cautioned that all forward- looking statements involve risks and uncertainties and for a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward- looking statements, refer to the Company's filings with the Canadian securities regulators available on www.sedar.com.

Neither 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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