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CVR News - 21 April 2008

Update

CVR is rapidly progressing on a number of fronts that investors and brokers will be interested in. It has only been 2 weeks since the previous CVR news and in this time -

  • We have announced the acquisition of the remaining 40% of Golden Eagle
  • Our drilling program, utilising 5 diamond rigs concurrently, has covered substantial ground
  • We have commenced Due Diligence on a potential land acquisition

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Jason Stirbinskis
Chief Executive Officer
Central Asia Resources

Acquisition of Golden Eagle

On April 18, Central Asia announced that it is to increase its shareholding in Golden Eagle Resources from 60% to 100%, subject to shareholder approval. The acquisition by Central Asia of the 40% of Golden Eagle currently held by Mr Reiser will simplify the corporate structure, management and future financing. The deal is a big vote of confidence in the company by its major partner and represents a significant step forward in the Company’s evolution.

Mr Reiser will be issued approximately 37 million Central Asia shares (36% of the shares on issue post the transaction). The exact number of shares to be issued will be calculated based on the value of Golden Eagle as a proportion of Central Asia’s net assets at 31 March 2008. The shares issued will be subject to a 12 month escrow period.

Our Drilling Program

Thanks to our strong associations in-country, we have been able to secure 5 diamond rigs for an extended period. I am sure you are all aware that accessing drill rigs is one of the biggest challenges facing exploration companies currently, so to secure so many is quite an achievement and the timing is perfect for Central Asia. As mentioned previously, CVR will be progressing Kepken, Altyntas and Kengir to Commercial Licence later in the year. It is therefore imperative that we actively explore the lateral limits of mineralisation prior to this milestone, i.e. to secure as much mineralisation as possible within the Commercial Licence areas.

Our particular focus is on Altyntas as this prospect has revealed some impressive results of late and has great potential, but our program also includes drilling at the other 3 prospects. All our prospects are open at depth and laterally.

Another objective of the drill program is to provide substantial core sample for metallurgical test programs commencing later in the year.

Land Acquisition

The company is always on the look out for potential acquisitions that are aligned to our strategic objectives. With this in mind, we recently agreed to conduct due diligence on 2 areas, Dalabai and Bizhe, for potential acquisition. The areas are in close proximity to the existing prospects. There has been some mining already conducted on the Dalabai area and some plant may be included in the acquisition. The acquisition price will be negotiated once more is known about the condition and availability of the equipment.

JASON

Central Asia CEO -
Jason Stirbinskis

The new corporate structure (subject to shareholder approval) and our targeted focus on 4 highly prospective areas within our holding produces a very simple structure going forward.

Map: The 3 prospects to be converted to Commercial Licences later in the year are close to each other and to the major gold operation and town of Akbakai and its associated infrastructure.

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© Copyright 2008 Central Asia Resources Ltd Postal Address PO Box 695, West Perth WA 6872 Phone: +61 8 9486 4788
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