GOLD DRAGON CAPITAL MANAGEMENT LTD. EXERCISES ITS RIGHT TO PURCHASE THE REMAINING 31.12% OF THE INTEREST IN THE BELENCILLO PROPERTY CONCESSION
Gold Dragon Capital Managment Ltd. has exercised its rights per its contract with Petaquilla Minerals Ltd., increasing its ownership to 100 per cent of the Palmilla deposit. Recently PTQ, through its subsidiary Petaquilla Gold SA, sponsored and announced the completion of a National Instrument 43-101 technical report on the Palmilla deposit estimating its inferred resources at 502,800 gold-equivalent ounces. As per the contract of May 7, 2005, between PTQ and Gold Dragon, PTQ will own 17 per cent to 20 per cent of Gold Dragon stock once formal transfer of the Rio Belencillo (including the Palmilla deposit) and Rio Petaquilla concessions to Gold Dragon is completed. Rodrigo Esquivel, president of PTQ, stated, in a letter to Gold Dragon dated Nov. 23, 2012, regarding the option contract signed between PTQ and Gold Dragon, that PTQ will honour the terms of the contract (see news releases for PTQ of May, 2005; annual reports and Form 20F from 2006 to present; the management's discussion and analysis release of Sept. 13, 2006; and PTQ's latest corporate presentation).
