Vancouver, British Columbia (October 19, 2010 - Sonora Gold & Silver Corp. (the "Company" or "Sonora")) has reviewed and wishes to respond to the news release from Canaco Resources Inc. dated October 18, 2010. The Company's Tanzanian legal counsel has confirmed that Canaco's Prospecting Licence (the "Kilindi PL") does not provide them any rights on the area covered by the Handeni Primary
Mining Licence (the "PML"). The grant of the PML predates the grant of the Kilindi PL and that being the case the Company's legal counsel has advised that the mineral rights under the Kilindi PL are subject to the prior mineral rights granted under the PML to the holder. Based on the provisions of the Tanzanian Mining Act, these mineral licences should not be considered as competing rights as the prior granted PML, takes precedence over the Kilindi PL, that was granted later. The PML has been recorded in the mineral registry since it was granted. Furthermore on July 27, 2010 the ownership and status of the PML was officially reconfirmed to the holder in writing by the Commissioner for Minerals. Mineral rights granted under the Tanzanian Mining Act are noted in the Tanzanian Mineral registry and are available for public review at the office of the Commissioner of Minerals upon paying the prescribed fee. The Company also notified Canaco on July 30, 2010 of its option agreement with the holder of the PML and provided detailed coordinates of the area of land covered by the PML. Canaco has no right to conduct exploration activities on the area comprising the PML without the consent of the holder and Sonora. Canaco was notified by the holder of the PML to cease its activities on this area.
As indicated in the Company's news release of October 15, 2010, the PML was recently converted into a Mining Licence (the "ML") under the Mining Act by the Commissioner of Minerals. The Company entered into a restated and amended option to purchase 100% of the ML which is a binding and enforceable agreement under Tanzanian law and remains in full force and effect. Canaco has indicated in its press release that the Commissioner has suspended transfer of the ML to Sonora. The Company has not yet exercised its option to purchase the ML and has not made any application for a transfer of the ML. The Company will seek clarification from the Commissioner on what transfer is being referred to in the Canaco news release, as neither the Company nor the ML holder is aware of any transfer application. The ML holder and the Company continue to assert their valid rights to these interests which were properly and validly issued under Tanzanian laws.
The Company advises that it has not received any official notice by the Commissioner of the existence of any dispute, arbitration, or a date to attend an arbitration hearing. The Company will be contacting the Commissioner and other Government officials for clarification on this point and will be discussing any other concerns that they may have on this matter including the rights of Sonora and ML holder and Sonora's planned activities and its continuing commitment to positively, effectively and fairly acquiring and advancing its mineral rights and interests in Tanzania.
ON BEHALF OF THE BOARD OF DIRECTORS
Ken ChurchillPresident & CEO, Director
For further contact:Ken ChurchillTel: 778.373.5499
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
Stock ChartFinancial Reports
Sonora Gold & Silver Corp.Suite 2300, Oceanic Plaza1066 West Hastings St.Vancouver, BC V6E 3X2
© 2010 Sonora Gold & Silver Corp.