Reunion Gold Corporation

Reunion Gold Corporation

June 18, 2008 08:06 ET

Reunion Gold Corporation: Approval of Acquisition of Lely Mountain Project in Suriname

LONGUEUIL, QUEBEC--(Marketwire - June 18, 2008) - Reunion Gold Corporation (the "Company" or "Reunion") (TSX VENTURE:RGD) is pleased to announce that the TSX Venture Exchange ("TSX-V") has accepted for filing documentation pertaining to the assignment agreement dated October 15, 2007 between the Company and Laurentian Mountains Resources Inc. ("LMR"), a private company controlled by Mr. David Fennell, the chairman of Reunion. As announced on October 16, 2007, LMR had assigned to the Company an option from Grasshopper Aluminum Company N.V. ("Grassalco") to explore and acquire a 100% interest in Lely Mountain and adjacent land in Eastern Suriname (the "Lely Mountain Project") located within the greenstone belt of Eastern Suriname, approximately 180 km south-southeast of the capital Paramaribo.

The receipt of final acceptance was the last outstanding condition of closing of the transaction. The transaction closes today with the issuance and delivery by Reunion to LMR of a share certificate representing two (2) million common shares of the Company and the reimbursement of $100,000 representing the first installments paid by LMR to Grassalco under the Grassalco option agreement. LMR will be entitled to receive an additional two common shares for each ounce of gold that will be reported as a measured and/or indicated resource as defined under National Instrument 43-101. The transaction between the Company and LMR had been approved by an independent committee of the Board of Directors of the Company.

Under the Grassalco option agreement, the Company will have to make payments to Grassalco of US$100,000 in the second year, US$125,000 in the third year, US$200,000 in the fourth year and US$ 250,000 in each of the following years until completion of a feasibility study. An additional US$300,000 will be payable to Grassalco upon the Company obtaining a right of exploitation and all required permits to commence construction of a mine. Grassalco has agreed to transfer the rights comprising the Lely Mountain Project to the Company as soon as it has incurred US$5 million in exploration expenditures, with minimum exploration expenditures of US$8 million to be incurred over a five-year period. The Grassalco option also provides for a variable net smelter return royalty, as well as an option for Grassalco to acquire a 20% interest in the project after a feasibility study has been prepared, at the then market price.

The Company has prepared a filing statement and a NI 43-101 technical report on the Lely Mountain Project providing additional information about the Company and the Lely Mountain transaction, both of which documents are available on the Company's website at and on SEDAR at

Planned Exploration at Lely

The Company has commenced preliminary work at Lely Mountain. The initial work program consists of the establishment of roads to supply field operations, airborne magnetic and radiometric surveys, interpretation of high-resolution satellite imagery, identification of all artisanal gold mining operations and inspection, mapping and sampling of such workings, mapping of regolith to assess soil sampling results and methods, pilot studies for planned geochemical sampling and grid sampling in areas of small scale mining and trenching in areas of positive results.

This press release contains certain forward-looking information as defined in applicable securities laws ("forward-looking statements"). Generally, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates" or "believes", or variations of, or the negatives of, such words and phrases, or statements that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. Specifically, this press release includes forward-looking statements regarding the option to acquire the Lely Mountain Project as well as the exploration program to be carried out on it. Inherent in forward-looking statements are risks, uncertainties and other factors beyond the Company's ability to predict or control. These risks, uncertainties and other factors may cause the Company's actual results, performance or achievements to be materially different from any of the expectations of future results, performance or achievements expressed or implied by forward-looking statements. All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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