The Mission Group Regulatory News (TMG)

22 Aug 2007 15:45

Thistle Mining Inc.22 August 2007 Update on Forecast Gold Sales, Credit Lines, Financial Condition and Appointmentof Mr. John Bredenhann as Chief Executive Officer Toronto, August 22, 2007 - Thistle Mining Inc. ("Thistle" or the "Company")(AIM: TMG) Update on Forecast Gold Sales The Company wishes to announce a downgrade to the forecast gold sales of itssubsidiary President Steyn Gold Mines (Free State) (Pty) Ltd ("PSGM") for 2007from the previous forecast made in July 2007 of 134,400 oz to 132,600 oz. Theadjustment follows additional unexpected rehabilitation work undertaken at theareas affected by the fire at No. 2 shaft as described in the Company's pressrelease of July 26, 2007. The reduction in the forecast sales has been offset by the weakening of the ZARrelative to the US$, such that, cash and total costs for 2007 are now forecastto be between $615 and $625 per ounce and $655 and $665 per ounce respectively,assuming an average exchange rate of 7.16 ZAR:US $ for 2007. Cash cost per ouncesold is not a recognized measure under Canadian GAAP. Credit Lines On June 27, 2007, MC Resources Limited ("MC") and Casten Holdings Limited ("Casten") agreed to provide a credit line to the Company of up to $666,600 permonth for the three month period to September 2007. The credit line wasavailable for the purpose of funding corporate costs including the cost ofstrategic initiatives relating to PSGM and to provide a contingency in the eventof below forecast performance by PSGM. As described in this Company's press release of June 27, 2007, the credit linewas contingent on, amongst others, improved performance at PSGM for each of themonths of July and August 2007 of not less than 396 kilograms of gold.Unfortunately this level has not been reached and as a result MC and Casten haveno obligation to extend any further credit. In addition, MC and Casten may, attheir option, declare all amounts owing by Thistle to them to be forthwith dueand payable. At present Thistle has not received any notice in this regard. MC and Casten have, however, agreed to fund certain costs of the Company forAugust 2007 amounting to $374,000 as set out below and have stated that theywill consider at their discretion future requests from the Company foradditional funding on a case by case basis. Financial Condition of the Company Having reviewed the cash flow forecasts of the Company and its subsidiaries, itis management's belief that without additional credit support from MC and Castenor any other third party, existing cash resources, net cash to be generated fromoperations and the sale of assets will not be sufficient to meet the Company'scorporate costs including the cost of strategic initiatives relating to PSGM. MC and Casten have agreed to fund the corporate costs for August 2007 amountingto $374,000 subject to the appointment of Mr. John Bredenhann as Chief ExecutiveOfficer. MC and Casten have not made any further commitments nor have theyprovided any further assurances with respect to the funding of future operatingrequirements although they have stated at their discretion they will considerfuture requests from the Company for additional funding on a case by case basis. Should PSGM not be successful in achieving sufficient levels of profitableoperations and MC and Casten or any other third party not fund the Company'scorporate costs there is a material risk that the Company and its subsidiariesmay not continue as going concerns and, therefore, that they may be unable torealise their assets and discharge their liabilities in the normal course ofbusiness. Appointment of Mr. John Bredenhann as Chief Executive Officer The term of Mr. Gerrit Kennedy's contract as Chief Executive Officer of Thistlehas now been completed and Mr. Kennedy has decided to retire from the miningindustry to pursue other business interests. The Board thanks him for pastservices and wishes Mr. Kennedy success in his future endeavours. It is with pleasure that the Board wishes to announce the appointment of Mr.John Bredenhann as Chief Executive Officer, for an initial period of six monthswith effect from August 26, 2007. Mr. Bredenhann is a seasoned mining executiveand has over 38 years operational experience in the hard rock South African goldmining industry. Prior to joining Thistle, Mr. Bredenhann was Chief ExecutiveOfficer of the Placer Dome - Western Areas Joint Venture that ran the South DeepGold mine now part of the Gold Fields of South Africa group. Mr. Bredenhann has also held various executive positions in the Gold Fieldsgroup including as Senior Consultant - Group Projects, Senior Manager Operationsof the Kloof Division and Mine Manager of Driefontein Consolidated. MrBredenhann is a South African citizen. Lord Lang, the Chairman of Thistle, states that: "I am sure everyone will joinme in welcoming the arrival as Chief Executive Officer of John Bredenhann, withall the mining experience and leadership qualities that he will bring to therole, and we wish him success" Mr. Bredenhann indicated that he will conduct a review of the operations of thePresident Steyn Gold Mine. One of Mr. Bredenhann's key responsibilities will beto provide leadership to President Steyn Gold Mine until any divestiture of themine is completed. For further information, contact: Anton Kakavelakis, Chief Financial Officer + 27 57 391 9026 or email toinfo@disselgroup.com Gerry Beaney, Troy MacDonald or Maureen Tai, Grant Thornton Corporate Finance at+44 (0) 207 383 5100 Forward Looking Information: This press release may contain or refer toforward-looking information based on current expectations. Forward-lookingstatements are subject to significant risks and uncertainties, and other factorsthat could cause actual results to differ materially from expected results.These forward-looking statements are made as of the date hereof and Thistleassumes no responsibility to update or revise them to reflect new events orcircumstances. This information is provided by RNS The company news service from the London Stock Exchange