🕐11.12.08 - 17:38 Uhr

MNR 2008 Summary



Attached is a brief summary of Mediterranean Resources activities during 2008.

We have made significant progress during the year: a first NI 43-101 compliant resource estimate was completed in March; drilling was continuous from July through December; and most recently we announced a Letter of Intent to arrange a joint venture for continued development of our properties in Turkey.

A definitive joint venture agreement with Cengiz Holding Co.

for exploration, development and mining operations is expected by the end of January 2009.

The terms of the joint venture provide for exploration of our extensive land package as well as advancing the Corak Project towards a production decision without equity or debt financing on our part, a situation that should prove highly favourable to Mediterranean shareholders.
As you are fully aware, economic conditions have deteriorated dramatically during the past year, and most predictions are that 2009 will be at best a period of consolidation.

There will be many junior miners facing the prospect of a dry market for their ventures; such companies will have a difficult time fulfilling their property obligations and raising capital for exploration budgets, a situation that will exacerbate their current difficulties regarding share price depreciation.
Our company has not escaped the general downtrend in share price; we are currently trading at a market capitalization of $5.2 million (Canadian dollars) at a time when we have over $4 million in cash; Mediterraneans properties in Turkey have established resources of over 2 million ounces gold equivalent, primarily gold with a base metals credit of about 20%, but like so many other junior mining companies, the market is giving little or no valuation to our projects.

However, our joint venture agreement is a strong validation of our properties and projects, as the terms are entirely directed at acquiring a working interest and are in no way reflective of our share price.

Our current working capital will not be exposed to risk or depletion with the finalization of the agreement.
While every aspect of the 2008 world economy from manufacturing to finance has suffered serious setbacks and losses, the price of gold has held up remarkably well.

At the date of this letter gold is up 2% on the year and is maintaining a spot price of over $800 per ounce.

A production decision on our Corak Project will likely benefit from a robust gold price, but the intangibles brought to Mediterranean by its new partner may prove equally beneficial.

Cenzig is a private company with strong local experience in mining and in construction, and these qualities could provide us with economics unattainable by any other means.
Best Wishes for the Holiday Season and for 2009.
Douglas Hickey Manager, Investor Relations 890 - 885 Dunsmuir Street Vancouver, BC.

V6C 1N5 TEL: 604 629-4807 TSX - MNR



Products & Services | Jobs