TNR Gold postpones work on Escorpio IV due to dispute

2008-05-23 16:36 ET - News Release

Mr. Gary Schellenberg reports

ESCORPIO IV OWNERSHIP UPDATE

TNR Gold Corp. has advised that, with respect to its news release reported in Stockwatch on April 16, 2008, title to the property described as Escorpio IV is currently the subject of a dispute with MIM Argentina Exploraciones S.A. (Xstrata Copper). Xstrata Copper claims that title to the Escorpio IV property is included within the property over which Xstrata Copper, on April 23, 2007, earned a 100-per-cent interest from TNR, pursuant to the terms of an exploration and option agreement between the parties effective as of May 15, 2004 (see Stockwatch news dated May 21, 2004). Escorpio IV is presently registered in Solitario Argentina S.A., TNR's wholly owned subsidiary in Argentina.

Pending a resolution of this dispute, TNR announces that it will postpone all work on the Escorpio IV property. TNR has a 25 per cent back-in right applicable to all the property Xstrata optioned from TNR. The back-in right is conditional upon Xstrata Copper completing a feasibility study on any part of the property no later than April 23, 2010. TNR may exercise the back-in right within 120 days of notification from Xstrata Copper that Xstrata Copper has completed the feasibility study.

Escorpio IV property

The subject property is adjacent to the eastern border of the Los Azules property, currently being drilled by Minera Andes Inc. Los Azules is located near the Argentina/Chile border in San Juan province, Argentina.

We seek Safe Harbor.