Introduction to AIM

Medoro Resources Ltd 02 March 2004 MEDORO RESOURCES LTD. Admission to trading on the Alternative Investment Market of the London Stock Exchange INTRODUCTION The Directors of Medoro Resources Ltd. are pleased to announce the commencement of trading in the Company's Common Shares on AIM and the TSX Venture today. Medoro Resources Ltd. is a European gold exploration and development company. Its current principal activity is the exploitation of its interests on the Italian island of Sardinia through its operating subsidiary Sardinia Gold. Sardinia Gold, a 90%:10% joint venture with Progemisa, commenced activities in 1995 following the discovery of epithermal gold mineralisation at Furtei, in the south of Sardinia, and Osilo, in the north of Sardinia, by the University of Cagliari in 1988. After completing resource drilling and feasibility studies at Furtei, Sardinia Gold commissioned a mine on the Furtei property in 1997. Operations at Furtei are currently suspended pending further work on the economic viability of the mine. At Osilo, Sardinia Gold is planning underground trial mining to obtain test samplings on two of twenty known veins. In addition, Sardinia Gold geologists have identified numerous exploration targets over Sardinia. Sardinia Gold's principal exploration target is the recently discovered Monte Ollasteddu prospect. The Directors will also consider other appropriate exploration and development opportunities elsewhere in Europe, consistent with the Company's financial, technical and political expertise. BACKGROUND AND HISTORY Medoro was created through the Amalgamation of GMS Canada, the principal subsidiary of Gold Mines of Sardinia plc, a company quoted on AIM and incorporated in England and Wales, with Full Riches Investments Ltd., a company listed on the TSX Venture and incorporated under the laws of the province of British Columbia, Canada and continued under the YBCA. Pursuant to the Amalgamation Agreement, GMS incorporated GMS Canada under the YBCA. Pursuant to the terms of the Amalgamation Agreement, GMS completed the GMS Reorganisation by selling the shares of its wholly-owned subsidiary, GMS Australia, to GMS Canada in consideration for an aggregate of 38,726,261 shares of GMS Canada. Full Riches continued under the YBCA, and was amalgamated with GMS Canada to form a new corporation, being Medoro. Pursuant to the terms of the Amalgamation: (i) GMS, as the sole shareholder of GMS Canada, arranged for the distribution to GMS shareholders of Medoro Common Shares representing, in aggregate, approximately 50% of the issued and outstanding Medoro Common Shares (on a fully diluted basis); and (ii) the shareholders of Full Riches Investments received Medoro Common Shares representing, in aggregate, approximately 50% of the issued and outstanding Medoro Common Shares (on a fully diluted basis) as at the date of Admission. The entity formed through the business combination, Medoro Resources Ltd., has been formed under the laws of the Yukon Territory, Canada and will have its shares quoted on AIM and the TSX Venture. SUMMARY OF THE MEDORO PROPERTIES Furtei project The Furtei project comprises a mining concession, one research permit and one exploration licence, covering a total of 6,085 hectares (the 'Furtei project'). The Furtei project is located in south central Sardinia, approximately 40 kilometres north of the city of Cagliari between the towns of Furtei and Serrenti. The Furtei deposit was explored between 1988 and 1991, through a regional exploration campaign conducted by Progemisa. Four outcropping deposits were identified, Monte S. Miali, Monte S. Miali Est, Is Concas and Sa Perrima. Between 1989 and 1992, approximately 14,000 metres of diamond drilling and 5,000 metres of reverse circulation (RC) drilling were completed to evaluate the deposit. An additional 8,000 metres of diamond drilling and 15,000 metres of RC drilling were completed by Sardinia Gold. GMS Australia formed a joint venture agreement with Progemisa in 1993, creating Sardinia Gold. After completing resource drilling and feasibility studies at Furtei, Sardinia Gold constructed a carbon-in-leach (CIL) plant, mill and tailings structure, developed the property for production and commenced open pit mining and milling of oxide reserves in 1997. In addition, low grade, run-of-mine material was processed by heap leaching on a pad adjacent to the mill. A flotation circuit was constructed during 2000 and commissioned in April 2001 to treat refractory sulphide ores accessible in the open pits beneath the oxide material. Until early 2001, mill feed was solely oxide material. During 2001, mining passed through transitional zones and arrived at the sulphide zones in mid 2001. Most of the exploration activity during the period to the end of 2002 was focused on discovering near surface resources (preferably oxide ore) to maintain mining operations. The mine ceased production in February 2003 after all economic open pit ore sources were mined and oxide resources were depleted, pending a decision to exploit sulphide mineralisation from underground operations. Sardinia Gold has evaluated possible underground mining of known sulphide resources lying beneath the exhausted surface pits. Internal studies have shown this to be marginally economic and dependent upon potential local government grants, due to the small amount of mineable reserve, the capital requirement and the revenue expected from the sale of sulphide concentrate. With the depletion of the oxide resource, GMS commissioned consulting geologists to undertake and supervise a micro gravity and self-potential (SP) survey on the Furtei project with the objective of identifying new targets for exploration. The consultants mapped in detail the geology and alteration of the Furtei volcanic complex. In addition to the work conducted by the consulting geologists, GMS in-house geological staff conducted a detailed review of previous geochemical and geophysical surveys, including soil sampling, ground magnetics, IP surveys, alteration mapping and LandSat Image interpretation. A total of 28 new targets in and around the Furtei mine corridor were generated from this work. These targets are to be tested by Sargold, a TSX Venture listed exploration company, earning a 45% interest in the Furtei project by spending €15 million on exploration and development on the Furtei project over 8 years. Osilo project The Osilo project is situated in the north western part of the Island of Sardinia and surrounds the historic town of Osilo. Exploration in the Osilo area was initially conducted by Progemisa. Sardinia Gold, subsequent to agreement with Progemisa, has been exploring the extensive low sulphidation, epithermal vein systems in the Osilo region since 1995. Five principal vein areas have been explored by Progemisa and Sardinia Gold to date. Historical resources were estimated according to JORC code in 2000 on the Pala Edra, Bunnari, Fieldies, Sa Pala De Sa Fae and Pedra Bianca vein systems by Sardinia Gold. A trial mining programme to extract ore from underground mining methods has been proposed at the Pala Edra and Bunnari prospects in preparation for subsequent full scale mining on these veins. The southern edge of the tenements covering a subterranean water drainage area is currently restricted to exploration due to conflict with a mineral spring-water bottling plant. This restriction currently hampers exploration of one prospective target area on the Pedra Carnarza Vein system and exploration over approximately one third of the southern part of the Osilo tenements. Monte Ollasteddu project The Monte Ollasteddu prospect is located 50 kilometres north east of Cagliari and 12 kilometres south of the town of Perdasdefogu in east central Sardinia. The property is located along the incised and precipitous flanks of the southern margin of an elevated tableland at an elevation of 600 metres above sea level. Sardinia Gold geologists discovered the Monte Ollasteddu gold prospect in the Eastern Palaeozoics in September/October 2000. The property is held by Sardinia Gold under three research permits (one granted and two in application) and lies along the south-western limits of a military reservation. A research permit, which would allow drilling programs in the area, has been granted but finalisation of all approvals providing access to the area is still pending. The tenement for Monte Ollasteddu has been granted by the Italian Mines Department. However, drill permit access to the prospect is presently awaiting formal approval from the Ministry of Defence in Rome. Paved road access comes to within 2 kilometres of the area on the northern side of the plateau and an unpaved and sinuous track provides poor access to the south of the property at the base of the valley. Road access to the northern side of the property is possible year-round but only with military permission. The property was optioned to Homestake Mining Company of California (''Homestake'') (now a subsidiary of Barrick Gold Corporation) in 2002. The option was terminated during 2003. The property was subsequently optioned to Bolivar in September 2003. Bolivar has entered into a letter of intent with Gold Fields Limited on 10 October 2003, concerning the property. Other exploration On 10 February 2004, GMS Canada signed a letter of intent with Orogen which has been assumed by the Company pursuant to the Amalgamation. Under the letter of intent, the Company has agreed that SGM will grant to Orogen options over certain of its properties in Sardinia not currently under option to Bolivar, Sargold or any third party. Orogen will have a period of 12 months to perform preliminary evaluations on the properties, including geological testing and exploratory drilling, during which period Orogen may nominate those properties which will be subject to the options granted by SGM. Orogen will have a right to acquire up to a 70% interest in each of the properties, with 50% to be earned upon completion by Orogen of a pre-feasibility study on a property and an additional 20% to be earned upon completion by Orogen of a bankable feasibility study on such property. Upon completion of a bankable feasibility on a property, Orogen and SGM will each be responsible for funding further exploration, development and other work on the property in accordance with their respective percentage interests. Any interest earned by Orogen in a property will be subject to Progemisa's 10% interest. STRATEGY AND DEVELOPMENT PLANS The business model The Medoro business model is to explore for gold and, where appropriate, develop gold mines in Sardinia, and elsewhere in Europe. This would be accomplished with heavy reliance on the establishment of joint ventures with strategic partners to fund a significant portion of the exploration and development costs, utilising their experience and resources. The Directors believe that the focus on using partners' financial and technological resources reduces risk and increases opportunities to enhance shareholder value. Application of the business model in Sardinia In the context of Medoro's Sardinian assets, held through SGM, its Italian subsidiary, the joint venture partners are: Sargold, funding exploration and development in the Furtei area; Bolivar, in conjunction with Gold Fields Limited, funding exploration and development at the Monte Ollasteddu prospect and Orogen funding all other exploration on the island. The Directors are satisfied that the board of SGM, chaired by Giuseppe Pozzo, now has the right balance of technical, financial and political capability to exploit what they believe to be the excellent potential of Sardinia. SGM has clearly demonstrated that extractable gold is present on the island; over 130,000 ounces were produced from its first open-pit mine and there are opportunities to explore for new sources of mineable reserves. Extending the business model beyond Sardinia The Medoro business model means that the Company has relatively few costs to cover. It therefore has the opportunity to prospect, discover and secure new prospects, whilst its partners fund exploration of existing properties. The Directors intend to look elsewhere in Italy, as well as throughout Europe, for opportunities consistent with the Company's financial, technical and political expertise. CURRENT TRADING AND PROSPECTS The Company's current principal activity is the exploitation of its interests in Sardinia, through its operating subsidiary SGM. In the future, however, the Company anticipates limited revenue streams from its mining operations in Sardinia and will instead focus more on exploration, both on its properties in Sardinia and elsewhere in Europe. DIRECTORS AND SENIOR MANAGEMENT Directors Giuseppe Pozzo (Italian) (Director, President and Chief Executive), Age: 44 Mr Pozzo studied Law and Political Science at Turin University. He was elected to the Regional Parliament of Piemonte in 2000 and has been a councillor for the city of Settimo Torinese since 1999. He is currently Managing Director of NextCom S.r.L.; President of SGM and Vice-President of the Piemonte Regional Advisory Group of the Forza Italia party. He was formerly President of Chind SpA, Managing Director of GEORESTA S.r.L. and of GEO, RES S.r.L. and has a background in journalism and publishing. Gordon Bruce Keep (Canadian) (Non-executive Director), Age: 47 Mr Keep has been President and a director of Full Riches Investments since 15 April 2003. Mr Keep is the Managing Director, Corporate Finance, of Endeavour Financial. Previously, he held positions as Senior Vice President of Lions Gate Entertainment Corp. and Vice President of Corporate Finance with Yorkton Securities Inc. Serafino Iacono (Italian) (Non-executive Director), Age: 43 Mr Iacono is Chairman and Chief Executive Officer of Bolivar. Mr Iacono has also held directorship positions at Bolivar Goldfields Ltd and Gran Colombia Resources Inc. He resigned from Bolivar Goldfields in October 2001 and from Gran Colombia in October 2000 as a result of a change in business in each of these two companies. He is also a director of GMS and SGM. Jose Francisco Arata (Italian) (Non-executive Director), Age: 45 Mr Arata is Vice-President, Exploration and a director of Bolivar. Mr Arata has also held a directorship at Chivor Emerald Corporation, from which he resigned in May 1998. He is also a director of GMS and SGM. Jon Pither (British) (Non-executive Director), Age: 69 Mr Pither is a graduate of Cambridge University and is Chairman of Active Capital Trust plc. He was formerly the Managing Director of Amari plc, a director of Selection Trust plc, a director of the London Metal Exchange, a Council Member of the CBI, and President of the Aluminium Federation. He is also a director and Chairman of GMS. Martin Groak (British) (Non-executive Director), Age: 53 Mr Groak is a chartered accountant with an economics degree from London University. He is multi-lingual with an extensive background in international financial management. His main business experience has been in the metals, logistics and energy sectors. He was formerly Finance Director of the Primary Industries Group and is currently a director of The AiM VCT plc and Marker Management Services Ltd. He is also a director of GMS and SGM. Miguel de la Campa (Spanish) (Non-executive Director), Age: 59 Mr de la Campa has been President, Chief Operating Officer and a director of Bolivar since September 2002. From September 1993 to October 2001, Mr de la Campa's principal occupation was as Executive Director of Bolivar Goldfields Ltd (now Bluepoint Data Storage Inc.). He is also a director of SGM. Neil Woodyer (British) (Non-executive Director), Age: 60 Mr Woodyer is a Fellow of the Institute of Chartered Accountants of England and Wales. Mr Woodyer founded Endeavour Financial Corporation in 1988 and has been its Managing Director since inception, where he is responsible for directing advisory mandates and investment-related services. Senior Management Michael Davies (Canadian) (Chief Financial Officer), Age 43 Mr Davies qualified as a Chartered Accountant and has 20 years' experience in senior positions in mining, manufacturing, communications, transportation, entertainment and distribution companies. Mr Davies also has extensive Canadian and U.S. public company experience. Before joining Medoro he was Chief Financial Officer, Treasurer and Assistant Corporate Secretary at Century II Holdings Inc. He has also previously worked for Amtelecom Income Fund, The Garland Group, IMAX Corporation, LAC Minerals Ltd. and Pamour Group. Stephen John Nicol (Australian) (Managing Director, SGM), Age: 40 Mr Nicol holds a Bachelor of Science degree (Hons.) in Mining Engineering from the University of New South Wales. He has over 15 years experience in metalliferous mining and exploration operations, principally gold, with particular focus on underground mining. Mr Nicol has in excess of 5 years operating experience in Sardinia, including being the mine manager of the Furtei mine since 2000 and managing director of SGM since 2002. Jeff Rayner (Australian), (Exploration Manager), Age: 39 Mr Rayner holds a Bachelor of Science degree (Hons.) in geology from the University of Melbourne and is a member of the AUSIMM and the Society of Economic Geologists. He has over 17 years' experience in mining and exploration for gold and has previously worked for BHP Gold and Newcrest Mining in Australia and Asia. He has been the manager of exploration in Sardinia for the Gold Mines of Sardinia group since 1998. DIVIDEND POLICY Any future decision to declare dividends on the Common Shares will be made by the Directors depending upon the financial requirements of Medoro to finance growth, the financial condition of Medoro and other factors which they may consider appropriate in the circumstances. Medoro anticipates that future earnings will be retained for the development of its business and does not anticipate the payment of dividends to Shareholders for the foreseeable future. CORPORATE GOVERNANCE As the Company will be admitted to AIM, it is not required to comply with the Combined Code on the Principles of Good Governance and Code of Best Practice (the ''Combined Code''). However, the Directors intend to implement such steps (having regard to the size and current stage of development of the Company) to comply with the Combined Code, so far as it is practicable, taking into account that it is a company created under the laws of a Canadian jurisdiction and listed on the TSX Venture with existing corporate governance procedures in place. The Board has responsibility for the stewardship of the Company, oversees the management and operations of the business of the Company and supervises management, which is responsible for day-to-day conduct of the Company's business. The Board establishes the overall policies for the Company and monitors and evaluates the Company's strategic direction and retains plenary powers for those functions not specifically delegated by it to executive management. The Board of Directors will hold at least 4 board meetings throughout the year at which it will receive reports relating to the Company's operation and consider the Company's financial reports. The Company has established three Board committees, namely the Compensation Committee, the Corporate Governance and Nomination Committee and the Audit Committee. The Compensation Committee consists of Miguel de la Campa, Serafino Iacono and Neil Woodyer, each of whom are non-executive directors. The mandate of this committee will be to review and make recommendations to the Board of Directors in respect to the level of remuneration and other compensation (including share options) to be made available to the executive officers of the Company. The Corporate Governance and Nomination Committee consists of Miguel de la Campa, Serafino Iacono and Gordon Keep, each of whom are non-executive directors. The mandate of this committee will be to oversee corporate governance issues and compliance and to consider nominations to the Board. The Audit Committee is comprised of Miguel de la Campa, Jose Francisco Arata and Neil Woodyer, each of whom are non executive directors. It will be mandated to review audit functions and the financial statements. The Company has adopted and will operate a share dealing code for Directors and applicable employees and will take reasonable steps to ensure their compliance with AIM Rules on share dealing. SHARE DISTRIBUTION AFTER ADMISSION Under the Amalgamation Agreement, GMS is entitled to receive 38,726,261 Common Shares in exchange for all the issued and outstanding shares in GMS Canada. These Common Shares will be distributed to shareholders of GMS pursuant to the Distribution. DEALING AND SETTLEMENT Share certificates and CREST It is anticipated that Shareholders will receive Medoro share certificates by 5 March 2004. Currently the Common Shares cannot be held in uncertificated form; that is, within CREST. However, the Directors have made arrangements for the Common Shares to be held in CREST and such arrangements are expected to be completed within 1 month of Admission. Following completion of these arrangements, any Shareholders wishing to hold their stock through CREST can do so by lodging their share certificate and a CREST transfer form with their stockbroker or other CREST member. CREST is a computerised, paperless, share transfer and settlement system, which allows shares and other securities to be held in electronic rather than paper form. CREST is a voluntary system and Shareholders who wish to retain certificates will be able to do so. LOCK-IN AND ORDERLY MARKET ARRANGEMENTS No lock-in or orderly market arrangements have been agreed nor are they required pursuant to the AIM Rules. Accordingly, the Directors are, subject to the requirements of the AIM Rules and the Company's share dealing code, free to dispose of any of their respective interests in Common Shares held at the time of Admission (or any Common Shares issued pursuant to the exercise of options or warrants). However, Shareholders should note that pursuant to the policies of the TSX Venture, a total of 3,000,000 Common Shares owned by Jose Francisco Arata and NextCom Italia S.r.L., a company related to Giuseppe Pozzo, have been placed in escrow and will be released over an 18 month period. LEGAL AND REGULATORY ISSUES Shareholders should note that, as a Canadian corporation, Medoro will not be subject to rights of pre-emption. However, there are broad shareholder protections under Canadian corporate law, ensuring that the Board acts in a way that is not oppressive to the common shareholder or in breach of its fiduciary obligations. Shareholders should also note that, as a Canadian corporation, the Medoro Common Shares will not be subject to the provisions of the UK City Code on Takeovers and Mergers, even where the Common Shares are traded on AIM. Medoro will be regulated by the relevant Canadian law. THE AIM ADMISSION DOCUMENT Copies of the AIM Admission document dated 26 February 2004 are available to the public during normal business hours on any weekday (Saturdays and public holidays excepted) free of charge from the offices of Capita IRG Plc, The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU and shall remain available for at least one month after the date of Admission. (Helpline number: 0870 162 3100). SYMBOL Medoro will trade under the symbol 'MRL'. DEFINITIONS The following definitions apply throughout this announcement and unless the context requires otherwise, bear the same meaning as in the AIM Admission document published on 26 February 2004:- 'Admission' admission of all the Common Shares in issue to trading on AIM in accordance with the AIM Rules 'AIM' the Alternative Investment Market of the London Stock Exchange 'AIM Rules' the rules applicable to AIM companies as published by the London Stock Exchange 'Amalgamation' the amalgamation, under the YBCA, of FRI and GMS Canada to form the Company, pursuant to the Amalgamation Agreement 'Amalgamation the conditional agreement dated 28 November 2003 and made Agreement' between GMS, GMS Canada and FRI pursuant to which FRI and GMS Canada amalgamated and continued as the Company, pursuant to the laws of the Yukon Territory, Canada 'Board' or the current board of directors of the Company 'Directors' 'Bolivar' Bolivar Gold Corp. 'Cdn$' Canadian Dollars 'Common Shares' the common shares without par value in the capital of the Company 'CREST' the computerised settlement system to facilitate the transfer of title to shares in uncertificated form operated by CRESTCo 'CRESTCo' CRESTCo Limited '€' Euro 'Distribution' the distribution to shareholders of GMS of that company's Common Shares in Medoro receivable upon completion of the Amalgamation and which was approved by an extraordinary general meeting of the shareholders of GMS on 23 December 2003 'FRI' or Full Full Riches Investments Ltd Riches Investments' 'GMS' Gold Mines of Sardinia plc 'GMS Australia' Gold Mines of Sardinia Pty Limited, formerly a subsidiary of GMS and whose shares were transferred to GMS Canada pursuant to the Amalgamation 'GMS Canada' Medoro Resources Ltd., corporation number 30383, formerly a subsidiary of GMS, into which GMS has transferred the shares of GMS Australia (the holding company of the GMS Group's principal assets and operations), which company was amalgamated with FRI under the laws of the Yukon Territory to form the continuing Company, also called Medoro Resources Ltd. 'GMS Group' GMS and its subsidiary undertakings 'GMS the transfer of all of the issued and outstanding shares in Reorganisation' the capital of GMS Australia by GMS to GMS Canada 'Group' the Company and its subsidiary undertakings 'London Stock London Stock Exchange plc Exchange' 'Medoro' or the the continuing corporation resulting from completion of the 'Company' Amalgamation called 'Medoro Resources Ltd.' 'Orogen' Orogen Holding (BVI) Limited, a subsidiary of Gold Fields Limited 'Progemisa' Progemisa SpA, a company controlled by the Sardinian regional government, which has a 10 per cent. interest in SGM 'Sargold' Sargold Resource Corporation, formerly Canley Developments Inc. 'SGM' or Sardinia Gold Mining SpA 'Sardinia Gold' 'Shareholders' the persons who are registered as holders of Common Shares from time to time 'TSX Venture' the TSX Venture Exchange 'YBCA' the Business Corporations Act (Yukon), RSY 2002, Chapter 20, as from time to time amended, and including any regulations promulgated thereunder Enquiries: Martin Groak Tel: 0794 920 9301 Medoro Resources Limited Alastair Tel: 020 7588 7511 Stratton Williams de Broe Plc This information is provided by RNS The company news service from the London Stock Exchange

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