Roxgold Inc.

Roxgold Inc.

May 02, 2011 17:26 ET

Roxgold Inc.: Correction to Press Release of April 27, 2011 and Corporate Matters

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 2, 2011) - Roxgold Inc. (TSX VENTURE:ROG) (the "Company") reports that the Table accompanying the April 27,2011 press release reporting drill intercepts from the Bissa West property in Burkina Faso, West Africa the total depth for holes BBL-11-RC-012 and BBL-11-RC-013 were incorrectly reported as 300 meters. The actual depths were 120 and 109 meters respectively. The reported significant intervals are unchanged as is the note that BBL-11-RC-013 was terminated in gold mineralization.

The Company also wishes to clarify the potential ownership of the Bissa West property. The option agreement with Riverstone Resources Inc. ("Riverstone") is structured as three separate option agreements, each option agreement requiring a total cash payment of $100,000, issuance of 360,000 shares and complete work totalling $1.5-million per property over three years or two years in the case of Bissa West. Hence in order to earn a 60-per-cent interest in Riverstone's interest in all three properties, Roxgold must make cumulative share issuances of 600,000 shares upon the closing of the transaction (issued) as well as make cash payments and share issuances, and incur exploration expenditures as follows:

Year one:

  • Cash payments totalling $150,000, issue 180,000 shares and complete $1.05-million in work commitments;

Year two:

  • $120,000 in cash payments, issue 300,000 shares and complete $2.15-million in work commitments;

Year three:

  • $1.3-million in work commitments.
  • Riverstone has a 100% interest in the Yaramoko Property and the three concessions collectively known as the Solna property, and a 90% interest in the Bissa West Property.

The Company has notified Riverstone Resources that it intends to assume operatorship of the programs on July 5, 2011 as per the terms of the Option Agreements.

The Company has filed its NI43-101 compliant report "Technical report on the Geology of the Yaramoko, Bouboulou and Solna Group of Exploration Permits BURKINA FASO, West Africa" dated July, 2010 on SEDAR and on the corporate website.

As part of a planned consolidation of corporate services, the accounting function for Roxgold Inc. has been moved from Malaspina Consultants Inc. to White Label Management as of May 1, 2011. Accordingly, Mr. Robert McMorran, CA has resigned as Chief Financial Officer and has been replaced by Mr. Robert Anderson, CA. Mr. McMorran has made significant contributions to the success of the Company and his efforts are appreciated. Mr. Anderson previously served as a manager of six junior mining public companies for a mid size Chartered Accountant consulting firm. Previous to that he served as the corporate controller for three of the Hamilton Resource Group's junior mining companies and worked as a senior auditor at a mid and a large sized accounting firm. Robert has a broad range of experience through many sectors, including mining, film and television, technology, corporate and personal tax and owner managed companies. He has a wide range of skills dealing with public company reporting, IPO's, prospectuses, due diligence and business plans. Robert's skills were gained through articling at Staley Okada & Partners Chartered Accountants and PricewaterhouseCoopers LLP.

The Company's operations in Burkina Faso were unaffected by the recent urban disturbances and efforts are currently focused on preparing known mineralized zones on the Yaramoko and Bissa West properties for follow up core drilling. The Company also awaits assays for an additional 25 holes drilled during March 2011.

Robert Sibthorpe, President and CEO

Neither 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 release.

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