Advises Central Sun That it Will Not Match B2-Gold's Proposal

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Advises Central Sun That it Will Not Match B2-Gold's Proposal

posted on Jan 30, 2009 12:53PM

January 30, 2009

Linear Gold Advises Central Sun That it Will Not Match B2-Gold's Proposal

HALIFAX, NOVA SCOTIA--(Marketwire - Jan. 30, 2009) - Linear Gold Corp.(TSX:LRR) today announced that it has advised Central Sun Mining Inc. that it will not match B-2Gold's offer to acquire all the shares of Central Sun Mining Inc. in exchange for shares of B2Gold. Linear has also advised Cormark Securities Inc. to terminate the previously announced $15 million private placement undertaken in connection with the contemplated Central Sun transaction.

Wade K. Dawe, President and Chief Executive Officer of Linear, said: "We are disappointed that Central Sun's Board of Directors is recommending an alternative bid. Nevertheless, Linear has demonstrated its financial discipline over the years and will not be drawn into a bidding war. We remain committed to pursuing acquisition and growth opportunities in the best interests of our shareholders."

Linear is very well capitalized for pursuing new opportunities. As of January 2009, with only 27.9 million shares outstanding, Linear's debt-free balance sheet includes working capital of $25.0 million ($0.90 per share) and a portfolio of quality gold properties, including the Ixhuatan Property in Mexico, which at a 0.5 grams per tonne gold cut-off, is host to a National Instrument 43-101 compliant resource of:

- Measured Resources - 219,000 ounces of gold and 990,000 ounces of silver;

- Indicated Resources - 823,000 ounces of gold and 3,410,000 ounces of silver;

- Inferred Resources - 703,000 ounces of gold and 2,260,000 ounces of silver.

The Ixhuatan Property, along with Linear's three Dominican Republic Properties, are subject to fully funded joint venture agreements that ensure the properties are advanced at no expense to Linear.

Wade K. Dawe, President

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