October 2, 2008
Magnus International Resources Completes Conditions for Sale of the Huidong Property
Magnus International Resources, Inc. ("Magnus" or the "Company") (PINK SHEETS: MGNU) is pleased to announce that all of the conditions for the completion of the sale of its Huidong project to a Chinese mining group have now been met. The exploration license underlying the property has been renewed by the relevant Chinese authorities and 100% of the ownership interest in the company that possesses the license has been transferred to the Chinese group.
Pursuant to the sale agreement, Magnus already received 7 million RmB (approximately US$1 million) upon signing. The remaining 14 million RmB (approximately US$2 million) is now due and expected to be paid by the Chinese purchaser in the near-term. Magnus also retains a 3% NSR (Net Smelter Royalty) on any minerals produced from the property in the future.
Mr. Graham Taylor, Magnus' President and CEO, stated, "At this stage of Magnus' development, we feel that the best potential for us to make a world-class discovery lies in Uganda where we have been able to assemble an expanding portfolio of very promising projects in only two years of operation there. As an international exploration jurisdiction, Uganda has proven to be a cost-effective and "exploration-friendly" environment for Magnus. It is also a geologically prospective region that has seen little exploration using modern technologies even though it is on trend with some of the largest gold and copper deposits in the world. We look forward to making significant progress on our Ugandan portfolio and to adding new concessions based on our on-the-ground activities and our evaluation of the airborne geophysics program being shot over 80% of the country."
Investors are encouraged to visit the Magnus website at www.magnusresources.com where significant up-to-date information can be obtained.
About Magnus International Resources, Inc.
Magnus International Resources, Inc. (PINK SHEETS: MGNU) (www.magnusresources.com) specializes in identifying, acquiring and developing precious and base metal properties. Magnus' objective is to develop a balanced portfolio of early-to-advanced stage projects. Through its wholly-owned subsidiary, African Mineral Fields, Magnus has rights to ten Ugandan gold projects. The Company has a 100% interest in eight of the projects, is earning a 60% interest in a further property and has the right to earn an 80% interest in the tenth property. Subject to the consummation of the agreement described in this news release, Magnus also retains a 90% interest in a Sino-foreign joint venture gold exploration project at Huidong in China.
For further information please refer to the Company's filings with the SEC or on SEDAR or refer to Magnus' website at www.magnusresources.com.
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FORWARD LOOKING STATEMENTS: This news release may include "forward-looking statements" regarding Magnus International Resources, Inc., and its subsidiaries, business and project plans. Such forward looking statements are within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the United States Securities and Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor created by such sections. Where Magnus expresses or implies an expectation or belief as to future events or results, such expectation or belief is believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to price volatility of gold and other metals; currency fluctuations; political, operational, and governmental approval and regulation risks in China and certain African countries. For a more detailed discussion of such risks and other factors, please see "Risk Factors" in our Form 10K for our most recently completed fiscal year, on file with the SEC at www.sec.gov. This document may also contain information about adjacent properties on which Magnus has no rights to explore or mine. Investors are cautioned that mineral deposits on adjacent properties are not necessarily indicative of mineral deposits on Magnus' properties.
Contacts: Magnus International Resources, Inc. Investor Relations 1-888-888-1494 or (604) 694-1432 Email: [email protected] Website: www.magnusresources.com
SOURCE: Magnus International Resources, Inc.