SOURCE: EuroGas, Inc.

October 17, 2008 07:07 ET

Slovak Supreme Court Reaffirms Previous Judgment Returning Gemerska Poloma Talc Deposit to EuroGas's Rozmin

Court Further Halts All Appellate Proceedings and Rules That No Compensation Is Due Appellant

NEW YORK, NY--(Marketwire - October 17, 2008) - EuroGas, Inc. (EuroGas) (PINKSHEETS: EUGS) (FRANKFURT: EUG) (XETRA: EUG) (HAMB: EUG) (STUT: EUG) today announced that the Supreme Court of the Slovak Republic, which had previously reinstated Rozmin's talc mining concession at Gemerska Poloma in the Slovak Republic, recently ordered an immediate halt to an appeal made by the Slovak Mining Authority at Spisska Nova Vesa,(the appellant) a unit of the Ministry of Economy of the Slovak Republic. The Supreme Court also denied the appellant's claim to any compensation in this matter.

"We are pleased that the Supreme Court of the Slovak Republic has rapidly quashed the blatant attempt to, once again, grab Rozmin's Gemerska Poloma talc deposit," said Wolfgang Rauball, President and CEO, EuroGas. "Having put this legal wrangling behind us once and for all, we intend to continue our ongoing discussions with a major mining company that has had a long term interest in the development of this project. The objective of these discussions is to form a strategic relationship which will accelerate the development of this rich talc deposit; to bring it to production; and, to secure a long term sales contract for the talc."

The Slovak Mining Authority at Spisska Nova Ves, had, as previously announced, suffered a non-appealable defeat as a defendant in a lawsuit brought by Rozmin s.r.o. as plaintiff before the Supreme Court of the Slovak Republic in April 2008; the purpose of Rozmin's action was to obtain the return of the Poloma Gemerska talc deposit.

Notwithstanding, and in a flagrant attempt to usurp the original Supreme Court ruling to return the talc deposit to its rightful owner, Rozmin, the appellant sought appellate court relief on spurious legal grounds. The action undertaken by the appellant was rebuffed by the Supreme Court, which, in its ruling, unequivocally denied the defendant's right to appeal its previous judgment. The Supreme Court also denied the appellant, as previously stated, the right to any compensation in this matter.

Through its Austrian affiliated company, EuroGas GmbH, EuroGas has officially informed the Minister of Economy of the Slovak Republic about the ongoing unlawful actions of certain officials of the Ministry of Economy's Mining Authority Units at Spisska Nova Ves and Banska Stiavnica which were involved in the illegal cancellation of Rozmin's talc mining concession. EuroGas has requested that the Ministry of Economy open a formal investigation into this affair. In addition, EuroGas has notified the Commission of the European Union at Brussels, Belgium about the illegal appropriation of the talc deposit: EuroGas' legal counsel believes that the law of the European Union has been violated by the Slovak Ministry of Economy's Mining Authority Units at Spisska Nova Ves and by Banska Stiavnica.

The Slovak Republic is a full member of the European Union and has recently announced the introduction of the Euro, the European Union's common currency, as its official currency on January 1, 2009.

Separately, EuroGas announced that it has recently raised US $3,000,000 in a private placement of its common stock at a price of US $0.15 per share. These shares are restricted pursuant to US securities laws.

Rozmin s.r.o. is a closely held Slovak mining company which controls the massive Gemerska Poloma talc deposit with an estimated 150 million ton carbonate reserve in Eastern Slovakia. The talc deposit Gemerska Poloma, named after the village where it was discovered in Eastern Slovakia, is one of the largest talc deposits worldwide. The carbonate type deposit and resulting purity of the valuable mineral enhances the efficiency of the benefication process and allows a higher purity to be attained in the final project. EuroGas intends to bring the Gemerska Poloma deposit into commercial production. EuroGas owns, or holds option to purchase up to a 90% interest in Rozmin S.R.O.

About EuroGas, Inc.

EuroGas is a publicly traded oil and gas company with assets in Ukraine and Poland, as well as talc mining interests in the Slovak Republic. The company's common stock trades on the Frankfurt, Hamburg and Stuttgart Stock Exchanges and XETRA in Germany under the symbol EUG and on the Other OTC (Pink Sheets) in the United States under the symbol EUGS.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:

This press release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995.

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Contact Information

  • For further information, please contact:
    Wolfgang Rauball
    Chairman & CEO
    EuroGas, Inc.
    Telephone: (212) 618-1274