Sterlite Gold Ltd.

Sterlite Gold Ltd.

May 07, 2007 17:41 ET

Sterlite Gold Provides Update on Operations of Its Subsidiary AGRC

TORONTO, ONTARIO--(CCNMatthews - May 7, 2007) - Sterlite Gold Ltd. (TSX:SGD) advises that the 2007 mining plan of its subsidiary, Ararat Gold Recovery Company LLC ("AGRC"), has not been approved by the Armenian government and as a result, AGRC's mining operations have been temporarily suspended. AGRC is working with government authorities in an effort to secure approval for its mining plan so that operations can be resumed. AGRC has previously received approval for each of its annual mining plans during the term of its Implementation Agreement with the Armenian government.

Following various media reports in the last few days, the Company also advises that, in connection with the previously announced investigation by Armenian governmental authorities of AGRC's mining operations, AGRC has received from the Armenian authorities a preliminary notice of penalties and fines in the amount of approximately US$46.5 million that the Armenian government intends to levy on AGRC. The notice is preliminary in nature and the Company understands that the notice is to undergo further analysis and expert review at the relevant Armenian governmental agencies in the coming weeks, before it is served in final form upon AGRC.

As advised previously, Sterlite Gold and AGRC will vigorously contest any allegations or claims that may be made against them arising out of the investigation.

Cautionary Note on Forward-Looking Statements

Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, expectations, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "intends", "expects", "estimates", "may", "could", "would", "should", "will", "plan" or "potential". This information is based upon certain material factors and assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information, including information relating to the approval of AGRC's mining plan, resumption of AGRC's operations and the Armenian government investigation, including the received preliminary notice of penalties and fines. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements by reason of factors such as legislative and other judicial, regulatory, political and other developments, technological and operational difficulties and other matters detailed in other of the Company's filings with Canadian securities regulatory authorities. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements contained in this release. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. Further information regarding these and other factors which may cause results to differ materially from those projected in forward-looking statements are included in the filings made by the Company with Canadian securities regulatory authorities, available at The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.

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