Gold-Ore buying Bjorkdal mine (August 10, 2005)

Vancouver – Looking to graduate to producer status, Gold-Ore Resources (GOZ-V) is purchasing the Bjorkdal gold mine, in the Vasterbotten district of northern Sweden, from Irish-listed company Minmet.

The agreement has Gold-Ore paying a total of US$8 million, in stages, for the producing mine. A cash payment of US$500,000 is due upon signing and then annually for five years, with the remaining US$5 million to be paid in cash or shares in specified amounts prior to the fourth anniversary.

The acquisition of Minmet’s wholly-owned Swedish subsidiary, Bjorksdalgruven, includes the operating mine, plant, reserves and resources, and regional exploration properties.

Bjorkdal, one of Europe’s larger gold mines, has operated since 1988 producing about 850,000 oz. of gold. The open pit operation has proven and probable reserves of 1.6 million tonnes grading 1.94 grams gold per tonne. Measured and indicated resources stand at 6.9 million tonnes averaging 1.6 grams gold with additional inferred resources of 3 million tonnes of 1.7 grams gold. The reserve and resource calculations conform to Australian JORC reporting requirements.

Acquired by Minmet in 2003, the mine produced 30,600 oz. of gold in 2004 from 1.2 million tonnes of ore processed grading 0.94 grams gold, recoveries were 84.8%. Recent drops in output are attributable to processing of stockpiled lower grade ore from past operators, mixed with selected ore from the pit. A revised Stage 2 pit development program was initiated by Minmet to target higher grade ore blocks, including the southeast extension zone with grades of over 2 grams gold.

The 1.3 million tonne per year capacity processing plant utilizes a primary crusher feeding a ball and rod mill circuit. Recoveries of up to 90% are reported using a gravity concentrator system (centrifugal spirals and shaker tables) and flotation circuit.

The deposit occurs in the Skelleftea greenstone belt that hosts numerous deposits in northern Sweden, including the gold-rich Bolliden massive sulphide. Bjorkdal is classified as an intrusion related gold system with mineralization contained primarily in quartz veins within a granodiorite intrusive.

Following the acquisition announcement, investors in Gold-Ore drove up its share price over 100% to the 35 level, before closing it at 24 per share on volume of 170,000.