Teuton Resources Corp.

February 28, 2012 13:58 ET

Teuton Resources Corp. : LITIGATION UPDATE-AMERICAN CREEK VS. TEUTON

VANCOUVER, BC--(Marketwire - Feb 28, 2012) -


TEUTON RESOURCES CORP.

202-2187 Oak Bay Avenue

Victoria, BC V8R 1G1

Phone: (604) 682-3680 Fax: 682-3992

Toll Free: 1-800-879-2333

Website: www.teuton.com

February 28, 2012, Vancouver, BC: Teuton Resources Corp. ("Teuton") ("TUO"- TSX-V) ("TFE"-Frankfurt) ("TEUTF"-OTC BB) is pleased to provide the following update on its litigation with American Creek Resources concerning the Treaty Creek property, located north of Stewart in the Eskay Creek-Sulphurets- Premier region of northwestern British Columbia (the "Golden Triangle").

Teuton has terminated its relationship with present counsel and will be seeking new counsel in the next week, in all likelihood to be selected from one of Canada's ten largest law firms. Emphasis in the selection process will be placed on familiarity with litigation of mining-related matters. As a result of the termination, a representative from Teuton will be unable to attend previously scheduled examination for discovery, which must now be postponed until such time as new counsel is in place.

A representative from American Creek, Darren Blaney, was deposed in July of 2011. As part of his deposition, further documentation was requested by Teuton's counsel. Part of this documentation was delivered in January of 2012. American Creek's counsel objected to the delivery of other documents that were requested. Resolution of this dispute will await determination by a judge.

SEDI records show that Mr. Blaney had 2,043,088 shares of American Creek at the time of his deposition. A little more than a week after the depositon, Mr. Blaney began selling shares. This continued until he only had 249,088 shares left, representing an 88% decrease in his position.

As part of the litigation, Teuton has been trying to clarify American Creek's purported expenditures on the Treaty Creek property. Documents with respect to two of the largest items, drilling and helicopter costs, have been sought after. The daily time sheets for the 2007 drilling, which show who worked, what was done, and what materials were used---are no longer available, having been destroyed by both American Creek and the drill company (according to testimony by Mr. Blaney). It took 14 months from the beginning of the litigation for Teuton to obtain the complete helicopter flight records, which show where the helicopter went to, what it did, who was in the machine, and what time was used. An examination of these records show that many flights attributed by American Creek to the account of Treaty Creek were in fact carried out to the benefit of American Creek's Electrum property, also located in the Stewart area.

It is Teuton management's belief that this litigation will be long and complicated, and that American Creek's efforts to have the matter disposed of by summary judgment will fail.

Respectfully:

"Dino Cremonese, P.Eng."

President

Teuton Resources Corp.

If you would like to be added to Teuton's news distribution list, please send your email address to gary.teuton@shawlink.ca.

This news release includes certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward- looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking- statements and we caution against placing undue reliance thereon. Teuton Resources Corp. does have an ongoing obligation to disclose material information, as it becomes available.

The TSX Venture Exchange has neither approved nor disapproved the information contained herein.

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Teuton Resources Corp. via Thomson Reuters ONE

[HUG#1589788]

Contact Information

  • TEUTON RESOURCES CORP.
    202-2187 Oak Bay Avenue
    Victoria, BC V8R 1G1
    Phone: (604) 682-3680 Fax: 682-3992
    Toll Free: 1-800-879-2333
    Website: www.teuton.com