Erin Ventures Inc. [TSX-Venture: EV] announces the following update regarding the Santa Rosa Gold Mine and its other activities in Panama:

Transfer of land title at Santa Rosa
As previously announced by Erin, the terms of purchase of the properties comprising the Santa Rosa Mine by Erin include a $75,000 payment to Minera Canazas (a company formed by the former unionized workers at Santa Rosa Mine), which is due if, as, and when the land title is transferred to Erin. Minera Canazas commenced a Panamanian civil court action in June of this year in order to complete the transfer of the land title, however this process remains incomplete at this time.

The majority of the properties comprising the Santa Rosa Mine (along with other remaining assets at the mine) were awarded to Minera Canazas in 2007 (in lieu of unpaid wages) in an agreement with the Judicial Administrator in charge of the disposition of the Santa Rosa Mine assets, resulting from Greenstone Resources’ bankruptcy. Additionally, the Supreme Court of Panama recognized the claim of the workers (Minera Canazas) for unpaid wages, in a 2006 judgment. However, subsequently in 2009, these land titles were transferred to a third party in spite of the land having been irrefutably awarded to Minera Canazas several years prior. In January of 2010, the Public Registry of Panama (responsible for the registration of land transfers) acknowledged that procedural errors within their department facilitated the improper title transfer to the third party. As a result, the Public Registry has subsequently taken the Santa Rosa properties “out of commerce”. While the properties are out of commerce there can be no commercial activity whatsoever, conducted on the Santa Rosa properties.

Mineral concession applications
In conjunction with actions taken to transfer land title for the Santa Rosa properties, Erin has applied for several mineral concessions. In Panama, mineral rights are retained by the government, separate from land titles. Erin, through its wholly owned Panamanian subsidiary, Canamanian Resources, has applied to the government for the following mineral concessions:

  • Santa Rosa Mine – [exploration concession] which would allow for drilling and other exploration activities
  • Santa Rosa Mine – [transportation and beneficiation concession] which would allow for the commercial exploitation of material remaining on some of the former leach pads
  • 3 additional metallic mineral exploration concession applications – covering 6 zones of interest within the Veraguas gold belt near Santa Rosa Mine. These 3 concessions cover approx. 15,000 hectares between and adjacent to the Santa Rosa and Remance gold deposits.
  • Chepo concession – consisting of 2 areas totaling 21,000 hectares in the Chepo district, in eastern Panama. Historically, the Chepo area has a hosted small-scale alluvial mining dating back as far as the Spanish Conquistadors.

According to the agreement with Minera Canazas, the bulk of Erin’s financial commitment to Minera Canazas (totaling US$1.4 million) becomes payable if, and only if, the Santa Rosa exploration concession is exclusively granted to Erin and Minera Canazas by the government. Canamanian’s concession applications for Santa Rosa and surrounding area were initially rejected by the Panamanian government department in charge of mineral deposits. Canamanian has addressed the issues for rejection and has filed appeals for further consideration.

The same third party, who was the recipient of the disputed title transfer, has also submitted several concession applications to the government regarding Santa Rosa Mine, and has been granted one concession (transportation and beneficiation). It is the opinion of Erin’s management that there is clear evidence of inappropriate actions by certain government departments, giving this third party an improper and unfair advantage in the concession process. Erin is formally protesting these activities.

Other field activities in Panama
Erin has conducted other essential tasks in tandem with its efforts to resolve the land title issue and secure exploration concessions. These other activities include:

  • Compilation, digitization and analysis of historical exploration and production data at Santa Rosa
  • Establishment of a field office
  • Retention of local geologists, mining engineers and other specialists to aid in the due diligence process
  • Planning for developing a NI43-101 compliant resource at Santa Rosa
  • Evaluation of past processing and mining methods used
  • Completion of environmental impact studies
  • Lease negotiations with landowners holding strategic parcels in the vicinity of the Santa Rosa Mine.

In light of the recent developments, Erin has suspended the bulk of its activities in Panama pending the outcome of its concession applications and protests.

On behalf of the Board of Directors,
Blake Fallis, General Manager

The technical information in this release was prepared and approved by Dennis J. LaPoint, Registered Geologist in the State of North Carolina, a director of the Corporation, who is a Qualified Person under National Instrument 43-101.

For further information, please contact: Erin’s Public Quotations:
Erin Ventures Inc. Canada
Blake Fallis, General Manager TSX Venture: EV
Phone: 1-250- 384-1999 or 1-888-289-3746 USA
www.erinventures.com

Erin’s Public Quotations:
Canada
TSX Venture: EV
USA
SEC 12G3-2(B) #82-4432
OTCBB: ERVFF
Europe
Berlin Stock Exchange: EKV

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release