Sonora awaits appeal decision for Handeni option

Mr. Ken Churchill reports

TANZANIA MINING LICENSE APPEAL

Sonora Gold & Silver Corp.'s appeal in the High Court of Tanzania on the cancellation of mining licence No. ML 413/2010, which is the subject of the company's option on the Handeni property under an option agreement entered into on Oct. 6, 2010, was heard on March 27, 2012.

The company submitted five grounds of appeal relating to the cancellation of the ML based on its rights under Constitution of the United Republic of Tanzania and failure of the commissioner for energy and minerals and the Minister for Energy and Minerals to adhere properly to the provisions and procedures set out in the Mining Act. The submission included a timeline of events that occurred from July, 2010, to present date, describing the activities of various government officials that ultimately led to the cancellation of the ML. The submission also included the efforts by the company to remedy the loss of the ML actively through legal avenues prior to launching the current appeal in the High Court in defence of its rights under Tanzanian law.

The company has been advised by its Tanzanian legal counsel that the decision of the High Court will be rendered on May 30, 2012. THe company intends to keep its shareholders abreast of the results of the decision when obtained.