Sonora Gold & Silver Corp.

Sonora Gold & Silver Corp.

March 29, 2011 15:17 ET

Sonora Gold & Silver Corp.: Corporate Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 29, 2011) - Sonora Gold & Silver Corp. (the "Company" or "Sonora") (TSX VENTURE:SOC) -

Sonora has filed an appeal in the High Court of Tanzania (the "High Court") against the decision handed down by the Commissioner for Minerals of the United Republic of Tanzania to cancel the mining license No. ML 413/2010 (the "ML") held by Abdallah Omary Kigoda ("Mr. Kigoda") which the Company has an option to acquire under its Amended and Restated Option Agreement with Mr. Kigoda dated October 06, 2010.

It is the Company's position that the Honorable Minister for Energy and Minerals erred in law, and in fact, on a number of grounds by issuing the default notice and proceeding to cancel the Mining License. In particular, the Minister should have first addressed the appeal against the Commissioner's order on December 8, 2010 which itself was unlawful under the Mining Act. The Minister also erred in law, and fact, by cancelling the Mining License on the alleged failure to commence work on the property when the Company was specifically prohibited from conducting any work on the property by the Commissioner's order. The Company also takes the position that the Minister erred by cancelling the Mining license based on the dealings between the Company and Dr. Kigoda when such dealings were not unlawful under the Mining Act. In addition, the Minister did not take into consideration the interests of the Company in the Mining License obtained through a valid Option Agreement between the Company and Dr. Kigoda.

"Sonora plans to vigorously defend its rights relating to the Mineral License and will keep shareholders apprised of updates as they occur," states company President, Ken Churchill.


Ken Churchill, President & CEO, Director

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