Royal Standard Minerals Inc.
OTC Bulletin Board : RYSMF

Royal Standard Minerals Inc.

October 27, 2006 17:13 ET

Royal Standard Minerals Inc.: Shareholders' Meeting Called

MANHATTAN, NEVADA--(CCNMatthews - Oct. 27, 2006) - ROYAL STANDARD MINERALS INC. ("RSM") (TSX VENTURE:RSM)(OTCBB:RYSMF) has received documents purporting to constitute a requisition from a group of shareholders of RSM (the "Dissident Group") alleging that they hold more than 10% of the company's shares. The documents received requested that a shareholders' meeting be called to consider the removal and replacement of the existing board of directors of RSM.

The board of directors of RSM has reviewed these documents with the benefit of outside advice and has serious concerns with respect to whether such documents constitute a valid requisition under the New Brunswick Business Corporations Act.

While reserving all of its rights in this regard, the board of directors of RSM has called a meeting of shareholders in response to the purported requisition received from the Dissident Group at which the constitution of RSM's board of directors will be considered. The meeting will take place on May 29, 2007 in Saint John, New Brunswick (as required by law absent the approval of all shareholders). The board of directors of RSM (including all of its independent members) has concluded in the exercise of its business judgment that, for a number of reasons, this meeting date is in the best interests of the company.

In reaching this conclusion, the board of directors considered, among other things, the fact that persons apparently associated with the Dissident Group recently sought the election of a board nominee in advance of the June 2006 shareholders' meeting. Although RSM acceded to this request, the new board member withdrew his name and declined to take the board position after his election, leaving a vacancy of one director, which has since been filled.

RSM today also commenced a legal proceeding in the United States District Court - Central District of California against the members of the Dissident Group alleging violations of U.S. securities laws.

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 regulatory filings of the Company.

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

Contact Information

  • Royal Standard Minerals Inc.
    Roland Larsen
    qualified person
    775-487-2460 (FAX)