Royal Standard Minerals Inc.
OTC Bulletin Board : RYSMF

Royal Standard Minerals Inc.

June 12, 2008 09:00 ET

Robert N. Granger Appointed Chairman of RSM Board of Directors

RSM to enter into a joint venture to develop coal properties in eastern Kentucky

MANHATTAN, NEVADA--(Marketwire - June 12, 2008) - ROYAL STANDARD MINERALS INC., "RSM",(TSX VENTURE:RSM)(OTCBB:RYSMF) Royal Standard Minerals Inc. is pleased to announce that it has appointed Robert N. Granger Q.C. as Chairman of the Board. Mr. Granger, an Ontario resident, has practiced law in Toronto, Ontario for more than 30 years mainly in the corporate and securities law areas. He has been an officer and director of a number of resource companies during this period. Currently Mr. Granger serves as Chairman of Harricana River Mining Corporation as well as a director and officer of a number of other companies. Roland M. Larsen indicates, "we are pleased to have the depth of experience that Mr. Granger has to help provide management strength to RSM going forward."

Roland M. Larsen, CEO to announce that Royal Standard Minerals Inc.(RSM) has reached an agreement in principle with Sharpe Resources Corporation on which he also serves as CEO and (SHO.H, OTCBB:SHGPF) to jointly develop and operate a number of coal projects in Eastern Kentucky. Sharpe currently controls 100% interests in a number of coal projects in West Virginia and Eastern Kentucky. To enter into the transaction RSM has agreed in principle to advance to the project up to $2 million to facilitate the startup.

In order to conduct the negotiations and settlement of definitive agreements in this connection, the board of RSM has appointed an independent committee of directors consisting of Robert N. Granger (chairman) Mackenzie I. Watson and James C. Dunlap to evaluate finalize and recommend the transaction to the Board of Directors of the Company if warranted. It is anticipated that the business will operate as a joint venture between the companies at least at the outset.

In an effort to achieve diversity within its natural resource portfolio the RSM has entered into the jv program mentioned above focused initially on the eastern Kentucky coal fields with Standard Energy Company a subsidiary of Sharpe Resources Corporation. The joint venture will involve the opportunity for RSM to earn a 40% interest in coal projects that Standard has acquired or holds under option agreements. RSM can earn its $40% interest by advancing four projects to production over the next 12 months.

The Central Appalachian coal region is a major participant in the domestic and international coal markets and a leading exporter of metallurgical coal. This region to include Eastern Kentucky and southwestern West Virginia are participating in one of the one of the hottest coal markets in memory, a perfect storm that has descended on the worldwide coal business with no apparent near term solution to international demand because of the overwhelming growth in China, and unsatisfied demand in Europe and India. The international coal producers cannot keep pace with demand, this in turn has a direct impact (pricing pressure) on the domestic coal market. The Central Appalachian region is the site of one of the few areas in the US that holds large resources of metallurgical coal. Coal prices are up to $200-$250 per ton for metallurgical coal and in the $100-$150/ton range for high btu steam coal.

Stock prices for coal companies operating in this region in the past 6-10 months have increased in many cases, by more than 300% in this market with new stock market highs almost on a daily basis. RSM is getting into a market that offers the potential for rapid growth and at the same time provide it with some diversity into the strong energy business. The energy business is seen as being more immune to market conditions that affect volatility in the other commodities.

RSM will continue to work diligently on its gold projects in Nevada as part of an effort to advance the development programs that are currently in progress. Particular attention will be maintained on the Goldwedge project in an effort make this property profitable in the near term. To this end the Company has recently acquired and installed another Knelson Concentrator.

RSM is a natural resource exploration and development company.

Royal Standard Minerals cautions that the statements made in this press release and other forward looking statements made on behalf of the Company may be affected by such other factors including, but not limited to, volatility of mineral prices, product demand, market competition, imprecision of mineral estimates, and other risks detailed herein and from time to time in the Securities and Exchange Commission filings of the Company.

The TSX.V Exchange does not accept responsibility for adequacy or accuracy of this release as per Exchange Policy 3.3 section 6.5.

Contact Information

  • Royal Standard Minerals Inc.
    Roland Larsen
    Qualified Person NI-43-101
    775-775-2460 (FAX)
    Royal Standard Minerals Inc.
    Mr. Rich Kaiser
    Investor Relations