VANCOUVER, British Columbia, March 10, 2005 (PRIMEZONE) -- Capital Hill Gold, Inc. (OTCBB:CHGI) (the "Company") confirms on March 3,2005, pursuant to a Mining Option Agreement (the "Agreement"), the Company granted an option to Mercantile Gold Company (Pink Sheets:MGCP), to acquire fifty percent (50%) of Capital Hill's option to acquire forty-two mineral unpatented claims (claim name Victor 1-42 inclusive) and the NE & NW half of Section 9, and the surface rights with an option to purchase an additional 453 acres on Section 4 located in Cochise County Arizona (the "Property").
MGCP is required to spend a minimum of US$250,000 on the further exploration and development of the Property over the next twelve months.
MGCP is required to continue to investigate and evaluate the economic and technical feasibility of processing the gold-bearing surface alluvium material overlying the lode resources on the Property. Should an economic reserve be delineated, and an independent feasibility study recommend commercial development; Mercantile Gold would be obligated to contribute equipment and working capital valued at two million dollars (US$2,000,000).
Share Consolidation and Symbol change
The holders of the majority of the outstanding common shares of the Company effected a consolidation of the Company's share capital, on a twenty to one (20-1) basis. The effect was to decrease the number of the Company's common shares issued and outstanding from 20,470,000 to 1,023,500.
The Company's symbol on the Over the Counter Bulletin Board changed from "CAGI" to "CHGI".
Resignation of Directors
Effective March 4, 2005, the board of directors of the Company accepted the resignation of Peter Holeczek and Kent Carasquero as members of the Company's board of directors.
Appointment of Principal Officers
Effective March 4, 2005, the board of directors appointed Daniel Enright as the Company's sole director, President and Chief Executive Officer.
Mr. Dan Enright, age 46, attended Western State College of Colorado with a major in Geology. Since 2004 Mr. Enright has been President of International Auction Group, Inc. and since 1998 CFO of TI Communications. During the 1990's Mr. Enright had success in personal development of a multi-million dollar transportation company. In the 1980's, he was Vice President of Western Consolidated Energy, writing limited partnerships for gas/energy conversion. Served as production manager with The Mining and Chemical Corp., and was a Consultant to Advanced Agritech Inc. Mr. Enright has acute working knowledge of public markets, SEC and NASD. Knowledge includes financial strategies, accounting, budgeting, corporate legal, contract negotiation, tax matters and financial offerings. Working knowledge of institutional, state, federal and municipality transactions and governance. Held Clearance levels with DOD. Hazmat and Firearm Certification.
On Behalf of the Board, DANIEL ENRIGHT President
Cautionary Statements:
Statements contained in this press release, which are not historical facts, are forward looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based largely on the Company's expectations and are subject to a number of risks and uncertainties beyond the company's control, including but not limited to economic, competitive and other factors affecting the Company's operations, management team effectiveness, expansion strategies, available financing, market prices and recovery costs, government regulations involving the Company, facts and events not known at the time of this release, and other factors discussed in the Company's filings with the Securities and Exchange Commission. These statements are not guarantees of future performance and readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to update publicly any forward-looking statements.