Reunion Gold Corporation

Reunion Gold Corporation

March 28, 2011 10:02 ET

Reunion Gold Corporation Announces Signing of Mineral Agreement in Guyana

LONGUEUIL, QUEBEC--(Marketwire - March 28, 2011) - Reunion Gold Corporation (TSX VENTURE:RGD) ("Reunion" or the "Company") is pleased to announce that its wholly owned Guyanese subsidiary, Reunion Manganese Inc., has concluded a Mineral Agreement with the Cooperative Republic of Guyana. This is a comprehensive agreement which sets out the fiscal terms and conditions for the exploration, development and mining at the Matthews Ridge manganese project located in the northwest district of Guyana. Significant among the terms are: a royalty of 1.5% on gross manganese revenue and a flat corporate tax rate of 30%. It also sets out the terms under which a mining licence can be granted.

The Mineral Agreement signals the commitment of the Government of Guyana to the development of its natural resources. The agreement is an important milestone for the Company as it can now advance its exploration and development programs under clear and stable operating conditions.

In September 2010, Reunion Manganese Inc. obtained four prospecting licenses to conduct exploration and development for manganese in the North West District of Guyana over an area of 45,729 acres within and around the former manganese mines at Matthews Ridge and Pipiani, which closed in 1968. The former Matthews Ridge mine site is located 260 km NW of the capital city of Georgetown. Pipiani is some 40 km south of Matthews Ridge and north of the Barama River.

Reunion has been executing a trenching program at the former mine to outline and confirm continuity of mineralization, and is ready to initiate an aggressive 24,000m drilling program comprising 220 holes with the objectives of confirming the historic mineral resources within the trenched zone and define a NI 43-101 compliant mineral resource within, alongside and beneath all existing mined areas. The Company has also initiated metallurgical testing of all mineral-types to define potential manganese product and recovery parameters, with two batches of samples from the trenching program sent to Bateman Engineering in South Africa.

James Crombie, President and CEO, said: "Further to the impressive initial results on the trenching program announced on March 1, 2011, the Board of Directors approved an increase in the exploration budget by providing an additional $12 million for work in Guyana for the period to December 2011. This should allow the Company to attain its exploration and development objectives more rapidly. The execution of the Mineral Agreement gives us the confidence to pursue these goals."

About Manganese

Manganese is the fourth largest metal consumed in the world, behind iron, aluminum and copper. It is a key component in steel and iron production with no viable substitute, and in short supply.

Forward Looking Statements

This press release contains forward-looking information. Although the Company believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Forward looking information in this news release includes statements regarding the Company's objectives, results of the exploration activities and interpretation of such results, the completion of a mineral resource estimate and future work programs, and the manganese potential of the project. Forward-looking information involves known and unknown risks, uncertainties, assumptions and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Neither the 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 press release.

Contact Information