Production Suspended as a Result of Union Blockade

21 Apr 2008 07:00

Uruguay Mineral Exploration Inc ("the Company") (TSX VENTURE:UME) (LSE:UGY)advises that operations at San Gregorio have been temporarily halted from Friday18th of April as a result of a labour conflict. Up to an estimated 40 members ofthe Union of Metallurgical Workers blockaded all entrances to the mine,prohibiting other workers and contractors from entering the site. Approximately400 employees and 300 contractors work at the Company's San Gregorio operations. The labour dispute occurred as a result of the dismissal of an employee onWednesday 16th of April following an accident investigation that concluded thathe had failed to observe safe operating procedures. The employee had fourprevious disciplinary sanctions. A review of the most recent and prior incidentsconcluded that the employee was unsuitable to work in a mining environment. In agreement with the blockading workers, a small number of workers continue tooperate the plant on care and maintenance to allow immediate commencement ofproduction once the blockade has been lifted. The effect on full year production will be quantified and the Company will keepthe market informed of developments. ENDS The TSX Venture Exchange has not reviewed and does not accept responsibility forthe adequacy or accuracy of this news release. Editors' note: Uruguay Mineral Exploration Inc. is a gold producer andexploration company focused 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 Uruguay (San Gregorio), and is also the leading mineralexploration company in Uruguay having assembled an exploration portfolio basedon gold, base metals (copper, nickel, lead, zinc) and diamond prospects. Uruguay Mineral Exploration Inc. is quoted in Canada (TSXV) and London (AIM) andRBC Capital Markets is its Nominated Adviser and Broker. \* TUruguay Mineral Exploration IncTony Shearer, Chairman: +44 20 7602-1570tonyshearer@btinternet.comorDavid Fowler, CEO: 598 2 6016354urumin@ume.com.uyorInvestor/Media RelationsShared Value LtdEmily Bruning, +44 (0) 20 7321 5027ebruning@sharedvalue.netorRBC Capital MarketsAndrew Smith, +44 (0) 20 7029 7882andrew.smith@rbccm.comorSarah Wharry, +44 (0)20 7653 4667sarah.wharry@rbccm.com\* T Copyright Business Wire 2008