OMG Mineral Exploration Inc.

March 23, 2006 13:20 ET

OMG Acquires Gold Reef of Nevada, Inc. as Part of Re-Organization

TORONTO, ONTARIO--(CCNMatthews - March 23, 2006) - OMG Mineral Exploration Inc. (CNQ:OMGM)is pleased to announce that it is seeking shareholder approval for its reorganization which will result in a change in control of OMG, commonly called a "reverse take over". On March 22, 2006, OMG entered into a share exchange agreement to acquire 100% of Gold Reef of Nevada, Inc. of San Antonio, Texas, ("Gold Reef") by payment of 29,191,376 common shares of OMG to the shareholders of Gold Reef, subject to the approval of shareholders and the CNQ stock exchange. The 6,958,935 common shares of OMG currently issued and outstanding (on a fully diluted basis including 600,000 reserved for issuance pursuant to OMG's incentive stock option plan, but not including 225,000 reserved for issuance pursuant to optional property payments) will constitute 19.25% of the issued and outstanding common shares in the restructured company. A total of 26,272,218 of the 29,191,353 common shares (90%) to be issued to the Gold Reef shareholders, representing 73.9% of OMG's outstanding capital after completion of the acquisition of Gold Reef, will be escrowed. OMG proposes to change its name to "Gold Reef International Inc." if approved. Prospectus level disclosure regarding the entire transaction has been made in OMG's management information circular which will be mailed to shareholders in connection with the annual and special meeting called for May 8, 2006 to approve the transaction. The circular is being filed on both the CNQ website at and the SEDAR website at

The existing members of the Board of Directors of OMG will be joined by the three directors of Gold Reef. John F. O'Donnell, the president of OMG, said that he was very excited to welcome the management of Gold Reef who will bring a wealth of business and financial strength.

Crandell Addington, age 67, is President and Director of Gold Reef. He is a cum laude graduate from the Southwestern University, Georgetown, Texas, majoring in economics and accounting. Mr. Addington received post-graduate education in various sciences at the Trinity University, San Antonio, Texas. Mr. Addington has, over the course of 40 years, founded and/or operated successful enterprises ranging from chemical manufacturing to oil and gas exploration, development, and production. Mr. Addington is currently President, Chief Executive Officer and Chairman of Phoenix Biotechnology Inc. He is also President and Chairman of Anviram, Inc. As a result of his prior and current corporate leadership positions, Mr. Addington has been responsible, among other duties, for interacting with biomedical researchers and clinicians both in the United States and Latin America.

Lou Kost, Jr., age 62, is Secretary-Treasurer and Director of Gold Reef. He attended the University of Texas at Austin and St. Mary's University in San Antonio, Texas, where he studied marketing and financial management. Mr. Kost has been at various times a venture capitalist and management consultant. Mr. Kost is a former Texas state representative who served on the Banking Committee. Mr. Kost is currently Secretary and Director of Anviram, Inc. Among other duties, Mr. Kost is responsible for interacting with the governmental agencies in Latin America on behalf of Phoenix Biotechnology Inc.

Dr. Sadik M. Al-bassam, age 57, is Director of Gold Reef. He received his undergraduate degree from Kuwait University majoring in Accounting in 1971. He received his MBA from Indiana University - Bloomington, Indiana in 1975 and received his PhD in Accounting and Business from University of Texas at Austin in 1980. He joined the faculty of Kuwait University, Accounting Department in 1980. He became the Chairperson of the department from 1981 to 1986, and the Dean of College of Commerce Economics and Political Science from 1991 to 1995. He served as a director on the boards of directors of many investments and financing companies traded in the Kuwait Stock Market. He also served as a general manager of Bank of Bahrain and Kuwait - Kuwait Branch for a year in 1986/87. Dr. Al-bassam, as an associate professor, is the author of scholarly publications in local and international journals. He also published a few books in accounting in Arabic language. Dr. Al-bassam is a Kuwaiti CPA with international representation. He presently serves as the Chairperson of the Accounting Department at the College of Business Administration in Kuwait University.

Gold Reef has accumulated a large number of mining claims in the State of Nevada and has been evaluating 37 specific precious metals prospects in 2004 and 2005 as an outgrowth of an exploration program performed in 2002. Gold Reef retained Marston & Marston, an independent worldwide engineering and consulting firm, to conduct the exploration programs. Marston's 2004 assignment involved literature searches, land ownership analysis, reconnaissance sampling programs, preliminary geologic mapping and claim staking. Results were sufficiently encouraging to continue the field investigations in 2005. Follow-up evaluation in 2005 included detailed mapping and sampling on seven prospects, followed by staking lode mining claims on five areas, which demonstrate widespread gold and pathfinder elements typically associated with Carlin and Cortez style deposits.

Gold Reef intends to conduct additional exploration in 2006 over other areas where results were anomalous in gold and pathfinder elements over large areas. There are several additional geochemically and geologically prospective areas, which require additional work to determine the significance of gold anomalies associated with structural zones and fault intersections. Both copper and molybdenum are anomalous in greater than 70% of the samples, which are also anomalous in antimony, arsenic, mercury, silver, vanadium and zinc. Additional sampling, detailed mapping and claim staking is scheduled in early 2006 on this prospect.

Gold Reef intends to develop a Plan of Operations for submittal to the Bureau of Land Management on five prospects in order to conduct drilling programs on prospective targets identified in the 2005 program.

Work on two of the claim groups has progressed to the point of having geologic reports independently prepared on the Golden Trail Prospect and the Texas Canyon Prospect by Richard C. Capps, PhD, CPG which are compliant with National Instrument 43-101 and are being filed on SEDAR. Dr. Capps, a Professional Geoscientist of Evans, Georgia, USA is a graduate of the University of Georgia, with a PhD in Economic Geology and has practised his profession after graduating with a BS in Geology in 1974 and continuously since graduating with an MS in Geology in 1981. He is presently a consulting geologist and has been so since 1987. As a result of his experience and qualification, he is a qualified person as defined in National Instrument 43-101 and his reports referred to in this information circular have been prepared in compliance with both National Instrument 43-101 and Form 43-101 F1. Dr. Capps is an Associate Professor of Geology at Augusta State University and has taught geology at Augusta State since 1999. He is a Registered Professional Geologist in Georgia, USA (License number 000814) and in South Carolina, USA (License number 623). He is a member of both the Geological Society of Nevada and Society of Economic Geologists. Since 1978, Dr. Capps has been involved in mineral exploration for precious, base metals, and uranium, and has worked extensively on projects in the Nevada, Arizona, and California in the western USA; on exploration projects in North and South Carolina in the eastern USA and international projects in Suriname and Mexico.

Prior to completing the acquisition of Gold Reef, OMG will transfer all of its interest in its existing optioned mining claims, the Tudhope-Bryce Property, in Tudhope and Bryce Townships in the Larder Lake Mining Division, Ontario and $100,000 to a newly formed subsidiary on a tax free roll-over basis and all of the shares of the subsidiary will be distributed pro rata to the existing shareholders of the Company as a return of paid up capital.

The newly formed company's business objective will be to acquire, explore and develop prospective natural resource properties. Initially, the business focus will be to conduct exploration on the Tudhope-Bryce Property in accordance with the exploration program in the report of Timothy J. Beesley (P.Eng.) described in OMG's prospectus dated November 7, 2005 under the heading "Technical Report" and prepared in accordance with the requirements of National Instrument 43-101. A copy of the prospectus and the report can be found on both the CNQ website at and the SEDAR website at The properties are 20 km southwest of Englehart and 10 km east of Elk Lake, Ontario.

A program consisting of line-cutting, a ground proton magnetometer survey and an IP (Induced Polarization) survey has been commenced on the Tudhope-Bryce Property.

Timothy J. Beesley (P.Eng.) is a "qualified person" within the meaning of NI 43-101 and has reviewed the technical contents of this news release on behalf of OMG.

Forward Looking Statements: Statements made in this news release that relate to future plans, expectations, events or performances are forward looking statements. Such statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.

CNQ has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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