Late filing of financials

2 May 2007 07:01

Thistle Mining Inc.02 May 2007 THISTLE MINING INC. Late Filing of Financial Statements and Update on PSGM Toronto, May 1, 2007: Thistle Mining Inc ("Thistle" or the " Company") (AIM:TMG) announces today that it failed to meet the deadline for filing anddelivering its annual audited financial statements for the year ended December31, 2006 and related management discussion and analysis of financial condition(collectively, the "Financial Statements"). The delay in the release of the financial statements arises from the need toamend the financial restructuring plan referred to in the Company's pressrelease dated April 11, 2007 (the "Restructuring Agreement"). Thistle and its major creditors, MC Resources ("MC") and Casten Holdings Limited("Casten") have agreed in principle that the financial restructuring as largelycontemplated in the Restructuring Agreement will be suspended until CGA MiningLimited ("CGA") have consented to the transfer of Thistle's 100% ownershipinterest in Toowong to MC and Casten or the transfer of the Thistle's shares inCGA to MC and Casten. Toowong holds 40,985,538 CGA shares acquired as part ofthe recent transaction whereby Thistle sold its interest in the Masbate projectin the Philippines to CGA. If CGA's consent is not obtained within a period ofthree months from the date of signature of a binding agreement, MC and Castenhave agreed in principle to defer repayment of interest and principal on theloans they have advanced to the Company until May 2008. This will allow theCompany to present its financial statements on a ''going concern'' basis inaccordance with Canadian generally accepted accounting principles. However, inparticular circumstances the debt deferment undertakings provided by MC andCasten will be of no force and effect. These relate mainly to economiccircumstances of the Company, a material adverse change in the financialposition or prospects of the Company or its subsidiaries and any material legalclaims being made against the Company or its subsidiaries. It is now anticipated that a legally binding agreement dealing with thefinancial restructuring and debt standstill as contemplated above and theCompany's Financial Statements will be finalized by or around May 18, 2007. TheDirectors of the Company intend to request a restoration of the Company's AIMtrading facility at that time. The shares of the Company have been suspendedfrom trading on the AIM Market of the London Stock Exchange plc followingreceipt on March 27, 2007 of written notices from MC and Casten indicating thatthey were not willing to defer payments of principal and interest due on April1, 2007. Update on PSGM President Steyn Gold Mines (Free State) (Pty) Limited ("PSGM") sold 146,302ounces of gold in 2006. For 2006 PSGM's unit cash cost and total costs amountedto $541 and $577 per ounce of gold respectively and the Company realized anaverage price of $603 per ounce. Gold production from PSGM for 2007 isanticipated to be approximately 140,000 oz at a cash cost of $575 to $580 per ozassuming an exchange rate of 7.30 South African rand per US $. For further information, please contact: Andy Graetz, Chief Financial Officer at + 27 82 929 5562 or email toagraetz@disselgroup.com Gerry Beaney, Maureen Tai or Troy MacDonald, Grant Thornton Corporate Finance at+44 (0) 207 383 5100 This press release may contain or refer to forward-looking information based oncurrent expectations. Forward-looking statements are subject to significantrisks and uncertainties, and other factors that could cause actual results todiffer materially from expected results. These forward-looking statements aremade as of the date hereof and Thistle assumes no responsibility to update orrevise them to reflect new events or circumstances. This information is provided by RNS The company news service from the London Stock Exchange