Definitive JV Agreement for Buckreef Signed Between Tanzanian Royalty and Government

October 30th, 2011

A Definitive Joint Venture Agreement between Tanzanian Royalty and the State Mining Corporation ofTanzania(Stamico) for the development of the Buckreef Gold Project was concluded recently inDar es Salaam. Attending the signing ceremony were the Company’s President and CEO, James E. Sinclair, Chief Operating Officer (Tanzania) Joseph K Kahama and Company Director and Corporate Counsel, Rosalind Morrow. At a public signing ceremony, the Honourable William Mganga Ngeleja, Tanzanian Minister for Energy and Minerals, told the gathering that he was delighted to witness the “historic event of the signing of the Joint Venture Agreement for the Re-development of Buckreef Gold Mine” while Mr. Sinclair described the agreement as “a new model” with respect to how international mining companies conduct business in mineral rich countries in the developing world. For press coverage of this auspicious event in PDF format click here.

A Preliminary Economic Analysis (PEA) of the Buckreef Project is currently under way and upon the favourable completion of the PEA, the joint venture will undertake a Definitive Feasibility Study. Under the recently concluded definitive joint venture agreement, the parties intend to work toward bringing the Buckreef project into commercial production within a 30 month period.