Orosur Mining Regulatory News (OMI)

16 Jun 2005 15:02

Uruguay Mineral Exploration Inc16 June 2005 URUGUAY MINERAL EXPLORATION INC. MEDIA RELEASE 16th June, 2005 SYMBOLS: UME (TSXV), UGY (AIM) UME Wins Tax Breaks Uruguay Minerals Exploration Inc ("UME") is pleased to announce that it has beengranted national interest status under Uruguayan Investment Law in respect ofits capital investment in the Arenal mining project. This recognition shouldresult in future income tax savings and deferrals. Tax benefits have been granted on capital investments of up to $US19.3 millionover the 3 year period commencing 1 June 2004. The investment includes capitalexpenditure on the new mine fleet, exploration and developing the Arenal mine. The relief granted takes the following form: • relief from Corporate Tax on a total of up to $US 9,656,000 of taxable income has been granted for the 2006, 2007 and 2008 financial years. At the current tax rate of 30% this equates to a potential reduction of tax payable of $US2,896,800. • in addition, up to a further $US 9,656,000 in taxable income from the 2005, 2006, 2007 and 2008 financial years may be deferred to 2010. At the current tax rate of 30% this is equivalent to deferral of potential tax payments of up to a further $US2,896,800. These benefits are indicative maximum benefits. The actual benefit will bedepend on the timing of investment and profitability of operations in anyspecific tax year. To receive the benefit, the taxable income to which thebenefit applies needs to be retained in the business for a period of 5 yearsbefore it can be distributed as dividends. This classification of UME's investment in the Arenal mine as having nationalinterest status is a strong indication of the Uruguayan government's commitmentto foreign investment and the mining industry in Uruguay. ENDS The TSX Venture Exchange has not reviewed and does not accept responsibility forthe adequacy or accuracy of this release. Editors note: Uruguay Mineral Exploration Inc. is a gold producer andexploration company focussed on identifying and developing mineral opportunitiesin Uruguay. UME is a fully integrated mining company, possessing the skillsnecessary to explore and develop its discoveries. The Company operates the onlyproducing gold mine in the country (San Gregorio), and is also the leadingmineral exploration company in Uruguay having assembled an exploration portfoliobased on gold, base metals (copper, nickel, lead, zinc) and diamond prospects.In the first half of 2003, the Company discovered the Arenal deposit, currentlythe largest known gold resource in Uruguay. It is quoted in Canada (TSXV) andLondon (AIM) and Durlacher Limited is the nominated adviser. For further information, please contact Uruguay Mineral Exploration Inc.Tony Shearer, Chairman + 44 20 7523 5914; tony@tonyshearer.comChris Clark, President +59 82 601 6354; urumin@adinet.com.uyPJ Lewis + 44 7950 003 138; pjlewis@tiscali.co.uk Panmure Gordon & CoMathew Robinson +44 207 459 3600Jonathan Retter +44 207 459 3600 This information is provided by RNS The company news service from the London Stock Exchange