TNR Gold Corp.

TNR Gold Corp.

October 02, 2009 13:06 ET

TNR Gold Corp. Provides Update on Los Azules Copper Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 2, 2009) - TNR Gold Corp. ("TNR" or the "Company") (TSX VENTURE:TNR) is pleased to provide the following update on the status of its Los Azules property located in the San Juan Province of western central Argentina.

Minera Andes Inc. ("MAI") has today announced that Xstrata PLC has not given notice of exercise of its right to back-in to its Los Azules Copper Project (the "Project") for a 51% interest prior to the expiry of the time period for giving such notice under the terms of its back-in.

Gary Schellenberg, President of TNR, commented that, "Xstrata's decision does not affect TNR's own back-in right with respect to certain of the properties located in the Project. We are confident in the viability of the project therefore fully intend to exercise our back-in at the appropriate time and look forward to a mutually beneficial working relationship with MAI."

TNR retains a conditional 25% back-in right to certain of the properties within the Project through its wholly-owned subsidiary, Solitario Argentina S.A. ("Solitario") under an exploration and option agreement (the "Exploration and Option Agreement") between MIM Argentina Explorationes S.A. ("MIM"), a subsidiary of Xstrata PLC, and Solitario dated May 15, 2004, which is one of the underlying agreements to which MAI's interest is subject. TNR's back-in option is currently the subject of a legal dispute, with a court date set for the fall of 2010.

In the legal proceedings, TNR is seeking rectification of the Exploration and Option Agreement to the extent that it purports to terminate Solitario's back-in rights if a feasibility study is not completed within three years of MIM exercising its option. TNR's position is that the true intent of the parties is reflected in a letter of understanding which provided that Solitario's back-in right subsists until 120 days after completion of a feasibility study. TNR is also seeking confirmation of ownership of its Escorpio IV claim, which is located adjacent to the Project; and a declaration that the Escorpio IV property is excluded from the Exploration and Option Agreement.

There can be no assurances as to the outcome of this litigation or of any related claim that TNR may have with respect to the Exploration and Option Agreement. At this time, the likelihood of the outcome is not determinable and no recoverability or liability has been recorded in connection with these legal actions.


TNR is a diversified metals exploration company focused on identifying and exploring existing properties and new prospective projects globally. TNR has a total portfolio of 32 projects, of which 16 will be included in the proposed spin-off of International Lithium Corp.

The recent acquisition of lithium projects in Argentina, Canada, USA and Ireland confirms the company's commitment to project generation, market diversity, and building shareholder value.


Information concerning the resources and pre-economics of the Los Azules Project can be obtained by reference to MAI's press releases dated October 2, 2009 and February 5, 2009 and to the technical report entitled "Canadian National Instrument 43-101 Technical Report in Support of the Preliminary Assessment on the Development of the Los Azules Project, San Juan Province, Argentina" dated March 19, 2009. Each of these documents is available at

On behalf of the board,

Gary Schellenberg, President


Statements in this press release other than purely historical information and historical estimates are forward-looking statements and should not be relied upon. Such forward-looking statements include statements relating to the Company's future plans and objectives or expected results and any statements or inferences as to the outcome of litigation pertaining to its Los Azures properties. This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in resource exploration and development and the risks inherent in litigation. As a result, actual results and outcomes may vary materially from those described in the forward-looking statements.

CUSIP: #87260X 109

SEC 12g3-2(b): Exemption #82-4434

The TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) does not accept responsibility for the adequacy or accuracy of this news release.

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