Piper Capital Inc.

Piper Capital Inc.
Garson Resources Ltd.

Garson Resources Ltd.

April 26, 2007 08:00 ET

Piper and Garson Propose Amalgamation

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 26, 2007) - PIPER CAPITAL INC. (TSX VENTURE:PCL) ("Piper") and GARSON RESOURCES LTD. (CNQ:GARR) ("Garson") announce that the Boards of Directors of both Companies have agreed to an amalgamation of the two companies that will result in the formation of one public entity.

The primary asset and focus of both Piper and Garson is the jointly held New Britannia Gold Mine property in Snow Lake, Manitoba, Canada. (Piper as to a 60% interest and Garson as to a 40% interest). The objective of both Companies is to bring the mine back into production as quickly and efficiently as possible, and the Boards of both Companies feel an amalgamated entity will enable this goal to be achieved in a timely fashion and simultaneously maximize shareholder value.

The Boards have agreed to recommend to shareholders an amalgamation ratio such that Piper shareholders would receive one new share for one old share (a 1:1 share swap) and Garson shareholders would exchange one old share for one new share on a (1.37931:1) basis (i.e. 10,000 old shares would become 7,250 new shares). The capitalization of the merged entity would result in basic outstanding shares of approximately 83 million. Currently Piper has approximately 45 million shares outstanding and Garson has approximately 50 million shares outstanding. Subject to necessary approvals the name of the merged entity will be Garson Gold Corp.

The proposed Board of Directors of the new entity will be comprised of David Tafel, Edward Stringer, Pamela Strand, Jim Patterson, and Kenneth Cawkell. An Advisory Board will also be created, initially comprised of David Constable and Charles Hawley. The amalgamation will require shareholder and regulatory approval, and detailed information will be outlined in Information Circulars to be mailed to shareholders with dates of the respective Extraordinary General Meetings.

The New Britannia property covers approximately 3,900 hectares and hosts the historic New Britannia gold deposit, which operated from 1949 to 1958 and again from 1995 to 2004 producing approximately 1.43 million ounces of gold. Measured and indicated mineral resources at the New Britannia Mine total 364,000 ounces of gold (2,211,000 tonnes at 5.11 grams Au per tonne). Inferred mineral resources, within the mine and elsewhere on the property, total 176,000 ounces of gold (1,094,000 tonnes at 5.01 grams Au per tonne). The mineral resource estimates were completed using a gold price of US$400 per ounce and are reported in a National Instrument 43-101 technical report by William Lewis, B.Sc., P.Geo, of Micon International Ltd. The technical report is available for viewing on Sedar (www.sedar.com) and the respective Companys' websites (www.pipercapitalinc.com and www.garsonresources.com). The 2,150 ton per day mill and surface facilities are currently on care and maintenance.



David G. Tafel, President and Director


Edward Stringer, President and Director

This news release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict, which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. In this news release, statements about exploration budgets and future expenditure are examples of forward-looking statements. There is no guarantee that any discovery of commercial mineralization will be made on the New Britannia property. Accordingly, readers should not place undue reliance on forward-looking statements. The statements made in this news release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Companys' expectations and projections.

The TSX Venture Exchange and the CNQ Exchange have neither approved nor disapproved the contents of this press release.

Contact Information

  • Piper Capital Inc.
    David G. Tafel
    President and Director
    (604) 683-1991 or Toll Free: 1-877-399-1991
    Website: www.pipercapitalinc.com
    Garson Resources Ltd.
    Edward Stringer
    President and Director
    (604) 683-1991 or Toll Free: 1-877-399-1991
    (604) 683-8544 (FAX)
    Website: www.garsonresources.com