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NEWS RELEASE
Symbols: AGM.V
AROYF.OTC Bulletin
Board
August 3, 1999
In furtherance of the suit by Ag Armeno Mines and Minerals Inc. (“Armeno”) against PT Pukuafu Indah and Drs. Jusuf Merukh, for which Armeno obtained Default Judgments dated January 7, 1999 and January 13, 1999 in its favor from the Supreme Court of British Columbia, Canada, Armeno has filed a civil law suit against PT Pukuafu Indah and Drs. Jusuf Merukh in the District Court of South Jakarta, Indonesia. The suit is for damages totaling U.S. $439,500,000 (four hundred thirty nine million and five hundred thousand United States dollars) for breach of contract by PT Pukuafu Indah and Drs. Jusuf Merukh of the May 28, 1998 Letter of Agreement which was entered into with Armeno. Under the May 28, 1998 Letter of Agreement, PT Pukuafu Indah and Drs. Jusuf Merukh granted the sole and exclusive option to Armeno to purchase 90% of PT Pukuafu Indah (an effective 18% interest in the Batu Hijau mining project).
Armeno's Indonesian legal counsel, has advised Armeno that pursuant to the Decision of the District Court of South Jakarta No.337/Pdt.G/PN.Jak.Sel, dated 29th July 1999, and by Order of the District Court of Central Jakarta, Decision No. 50/1999/Del/PN.Jkt.Pst jo.No.337/Pdt.G/PN.Jkt.Sel, dated 30th July 1999, both District Courts have granted in favor of Armeno an Attachment Order (Court Order Seizure) for certain properties owned by Drs. Jusuf Merukh and PT Pukuafu Indah (collectively the “Merukh Group”) pending the final outcome of Armeno's suit. These properties include but are not limited to 90,000 shares representing 20% of the issued capital of PT Newmont Nusa Tenggara, the shares representing 20% of PT Newmont Minahasa Raya, and the shares representing 97% of the issued capital of PT Pukuafu Indah and all of the shares owned by Drs. Jusuf Merukh in PT Tanjung Serapung.
Furthermore, Armeno has been advised by its Indonesian legal counsel that a Notice of Attachment has been published in the following Jakarta Newspapers; Jakarta Post and Bisnis Indonesia, whereby the public has been put on notice and has been warned not to conduct any transaction in any manner whatsoever with the attached properties of the Merukh Group. The Notice further states that any dealings with the attached properties are prohibited by Indonesian law and will result in civil or criminal liability and sanctions.
PT Pukuafu Indah owns 20% of the aggregate issued shares of PT Newmont Nusa Tenggara which in turn owns the Batu Hijau mining project located in Indonesia (“Batu Hijau”). It is reported that Batu Hijau contains an estimated 11.8 million ounces of gold and 10.6 billion pounds of copper. Development of Batu Hijau is currently 90% complete and commercial production is anticipated during the first quarter of 2000. Batu Hijau is anticipated to annually produce an average of 600 million pounds of copper and 480,000 ounces of gold during the expected mine life of 25 years.
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PT Tanjung Serapung owns 20% of the aggregate issued shares of PT Newmont Minahasa Raya which in turn owns the Minahasa mine located in Indonesia (“Minahasa mine”). Production from the Minahasa mine during 1999 is estimated to be 300,000 ounces of gold.
FOR MORE INFORMATION ON THE COMPANY PLEASE CONTACT US AT TELEPHONE NUMBER (604) 681-1519, OR VISIT OUR WEBSITE AT WWW.AGARMENO.COM.
On behalf of the Board
Ag Armeno Mines and Minerals Inc.,
“Bedo Kalpakian”
___________________________
Bedo H. Kalpakian
President
THE INFORMATION CONTAINED HEREIN HAS NEITHER BEEN APPROVED NOR DISAPPROVED BY ANY STOCK EXCHANGE ON WHICH THE COMPANY'S SHARES ARE LISTED.
NR5:AUG3.DOC
As Director of Investor Relations at Ag Armeno it is my job to keep the public informed and to answer any questions they may have about Ag Armeno. I will try to answer any and all questions, quickly and honestly and I invite anyone to call me at 1-800-665-3119(US) or 1-604-681-1519. I look forward to hearing from you. Please visit our website www.agarmeno.com
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