Pershimco Resources Inc.
TSX VENTURE : PRO

Pershimco Resources Inc.

October 30, 2006 14:21 ET

Pershimco Corporate Update, Cease-Trade Order Lifted

ROUYN-NORANDA, QUEBEC--(CCNMatthews - Oct. 30, 2006) - Pershimco Resources Inc. (TSX VENTURE:PRO)

- Regulators lifted the Cease-Trade Order that was in place since
August 2nd against Pershimco Resources Inc.'s Common Shares

- Pershimco Resources Inc. named new auditors

- The Corporation completes and issues Annual Report and financial
statements for 2005, along with restated first quarter 2006
financial results

Today, the management of Pershimco Resources Inc. (TSX-V: PRO) (hereinafter, "Pershimco" or the "Corporation") express its satisfaction with the decisions of the "Autorite des Marches Financiers" (AMF, Quebec securities regulators) and of the TSX Venture Exchange to recede their decision dated August 2nd that imposed a Cease-Trade order on Pershimco common stock. Resumption of trading should occur at the opening of the market on October 30th.

The Corporation also wishes to comment on the confusion and rumors that occurred during the period of the cease-trade situation, the Corporation intends to explain the actions taken during that period to resolve the situation.

In the recent months, the Corporation's outlook was greatly disrupted by strategic management decisions from its board of directors that were due to major operational pressure caused by the Mexican operations progress. The Board and Management plans to advance the Cusi Property to pilot mining level in the short term and in order to conform to international best business practices, the Corporation named a new accounting firm with international mining experience as the Corporation had initially planned for a smooth transition with new audit and revision processes in disclosure requirements and compliance regulations. Unfortunately, the new auditors required more time to deliver the financial statements, delays that triggered the Cease-Trade order. The new auditors have now completed their work and the Corporation will be re-stating their past financial filings in the best interest of the Pershimco shareholders.

"With the positive outlook, the hopes created by the Mexican operations and the general market outlook in favour of our company, it was time to transform what was then a small scale administrative outfit into a well conceived administrative machine that will support what is now a junior exploration company (...)" said President Roger Bureau. The president also mentioned that the Corporation embarked in a full revision of all its administrative procedures in order to upgrade its administration and intend to keep the shareholders well aware of the progress in that direction.

ON BEHALF OF THE BOARD OF DIRECTORS

"Roger Bureau"

Roger Bureau, President

About Pershimco Resources Inc.

Pershimco Resources Inc. is a Canadian based resource and exploration company traded publicly under the symbol PRO on the TSX Venture Exchange. The Corporation holds 100% of numerous mining properties including the gold project of Courville near Val d'Or gold mining camp, northern Quebec. The Corporation also has an option to acquire 100% of various Canadian and Mexican properties including multiple properties and mines in the Mexican District of Chihuahua Pershimco has a Joint-Venture agreement with Dia Bras Exploration (TSX-V: DIB) in the Cusi mining region and the two partners are aggressively advancing the stages necessary to bring the properties to pilot mining by the first quarter of 2007.

The Corporation's mission is to extend the knowledge of its silver and zinc properties in Mexico trough advance exploration programs that will eventually lead to commercial production. That mission covers also the discovery, exploration and development of its Courville high quality gold project. In the very near future, the management expects positive commercial and financial results from the pilot mining program of the Cusi project via its partnership with Dia Bras (TSX Venture DIB).

Pershimco Resources Inc.'s website is www.pershimco.ca

FORWARD-LOOKING INFORMATION -- This press release contains forward-looking statements reflecting Pershimco objectives, estimates, expectations and the impact of acquisitions on Pershimco's financial performance. These statements are identified by the use of verbs such as "believe", "anticipate", "estimate", and "expect" as well as by the use of future or conditional tenses. By their very nature, these types of statements involve risks and uncertainty. Consequently, reality may differ materially from Pershimco's projections or expectations.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents herein.

Contact Information

  • Pershimco Resources Inc.
    Roger Bureau
    President and Chief Executive Officer
    1-866-797-2180
    1-819-797-9617 (FAX)