SOURCE: Sungro Minerals, Inc.

May 27, 2011 09:00 ET

Sungro Minerals, Inc. Shareholder Update

WARWICK, RI--(Marketwire - May 27, 2011) - Sungro Minerals, Inc. (OTCQB: SUGO) (PINKSHEETS: SUGO), an Exploration Stage Mining Company, is providing this update to shareholders as a "mid-year" review of activities in connection with our project known as the Conglomerate Mesa.

The release on February 11, 2011 of our long anticipated NI 43-101 report was an important first step in the continuing exploration and development of the Conglomerate Mesa project. Setting a benchmark for both further exploration as well as the foundation for valuation of the mineral resources contained in the claims, the report was also a required starting point for raising the additional capital required to move the project from exploration to "feasibility" or the point where the Company can execute a production plan. In the report, our geologist, Randall Moore, laid out a development budget and timeline for this next important phase.

In March 2011, North American Exploration, Inc. completed the staking and filing of an additional 217 claims on the behalf of the Company around the Conglomerate Mesa project area. These claims "filled in" several gaps in the claim blocks and were an important addition to provide continuity between the various segments of claims. In addition, they represented a 65% increase in land area over the original 331 claims, bringing the total claims to 548. The Company chose to make the necessary investment in these additional claims with the full expectation that the projected results contained in the February NI 43-101 report will extend to these connecting claim blocks and result in a significant increase in future mineral valuation. While on site, North American also completed the required annual stake inspection on a significant portion of our existing claims.

With the initial NI 43-101 report in hand, the Company has been able to work more diligently on raising the funding outlined in the report for the exploration and development program outlined by Mr. Moore. Since the report's issuance, the Company has been working with a number of potential investors, investment groups, strategic partners, and potential joint venture partners. This process is a long one given the amount of funding sought, and the due diligence required prior to closing which is quite extensive given the need to review in depth the conclusions of Mr. Moore in the NI 43-101, explore legal and environmental issues, and analyze the company's business plan. The Company is actively engaged with a number of groups that are well into this process and hopes that announcements should be forthcoming in the near future.

In the interim, the Company has arranged for various bridge financings which have permitted the above work to proceed without interruption.

The Company expects that the second half of its fiscal year will yield even greater results for our shareholders.

About Sungro Minerals, Inc.
Sungro Minerals, Inc. is an early stage Mining and Exploration Company seeking to acquire, develop, and manage various mineral properties and resources.

Cautionary Note to U.S. Investors
This press release may use the terms "measured resources," "indicated resources," "inferred resources," and "historical resources" which are calculated in accordance with the Canadian National Instrument 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Classification system. The United States Securities and Exchange Commission (the "SEC") does not recognize these terms and the SEC guidelines (Industry Guide 7) provide that such terms shall not be included in a registrant's filings with the SEC (unless required to be disclosed by foreign or state law). The SEC permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "inferred mineral resource" will ever be upgraded to a higher category. U.S. investors are cautioned not to assume that any part or all of a measured, indicated or inferred resource exists or is economically or legally mineable. U.S. investors are urged to consider closely the disclosure in our Form 10-K which may be secured from us, or from the SEC's website at

Forward-Looking Statements
This press release and any related calls or discussions may contain forward-looking statements. All statements, other than statements of historical facts, are forward-looking statements. Forward-looking statements include statements about matters such as: future prices and sales of and demand for our products; future industry market conditions; future changes in our exploration activities, production capacity and operations; future exploration, production, operating and overhead costs; recapitalization and balance sheet restructuring activities (including debt-for-equity exchanges, land transactions, capital raising and other activities); operational and management restructuring activities (including implementation of methodologies and changes in the board of directors); future employment and contributions of personnel; tax and interest rates; capital expenditures and their impact on us; nature and timing of restructuring charges and the impact thereof; productivity, business process, rationalization, restructuring, investment, acquisition, consulting, operational, tax, financial and capital projects and initiatives; contingencies; environmental compliance and changes in the regulatory environment; offerings, sales and other actions regarding debt or equity securities; and future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth.

The words "believe," "expect," "anticipate," "estimate," "project," "plan," "should," "intend," "may," "will," "would," "potential" and similar expressions identify forward-looking statements, but are not the exclusive means of doing so. These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical and current trends, current conditions, possible future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees, representations or warranties and are subject to risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by such forward-looking statements. Some of those risks and uncertainties include the risk factors set forth in our SEC filings and the following: the current global economic downturn and capital market weakness; the speculative nature of gold or mineral exploration, including risks of diminishing quantities or grades of qualified resources and reserves; operational or technical difficulties in connection with exploration or mining activities; contests over our title to properties; our ability to cure defaults under our current indebtedness; our substantial indebtedness and the impact such indebtedness may have on us; the possibility that our operating performance and operating prospects, and capital market conditions will limit our ability to timely meet our debt service obligations, comply with debt covenants, obtain necessary financing or refinancing or restructure indebtedness or our debt service obligations on acceptable terms or at all; potential dilution to our stockholders from our recapitalization and balance sheet restructuring activities; potential inability to continue to comply with government regulations; adoption of or changes in legislation or regulations adversely affecting our businesses; business opportunities that may be presented to or pursued by us; changes in the United States or other monetary or fiscal policies or regulations in response to the recent capital markets and economic crises; interruptions in our production capabilities due to unexpected equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, copper, diesel fuel, and electricity); changes in generally accepted accounting principles; geopolitical events; potential inability to implement our business strategies; potential inability to grow revenues organically; potential inability to attract and retain key personnel; interruptions in delivery of critical supplies and equipment raw materials due to credit or other limitations imposed by vendors; assertion of claims, lawsuits and proceedings against us; potential inability to maintain an effective system of internal controls over financial reporting; potential inability or failure to timely file periodic reports with the SEC; potential inability to list our securities on any securities exchange or market; and work stoppages or other labor difficulties. Occurrence of such events or circumstances could have a material adverse effect on our business, financial condition, results of operations or cash flows or the market price of our securities. All subsequent written and oral forward-looking statements by or attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. We undertake no obligation to publicly update or revise any forward-looking statement.

Neither this press release nor any related calls or discussions constitutes an offer to sell or the solicitation of an offer to buy any securities.

Contact Information

  • Contact:

    Sungro Minerals, Inc.
    Martin Bolodian
    Investor Relations
    Phone: (401) 648-0805 ext. 350
    Fax: (401) 648-0699