VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 28, 2007) - GREAT PANTHER RESOURCES LIMITED (TSX:GPR) advises that the Company has, today, been notified by its Mexican legal counsel that five dissident members (of the three hundred and eighteen members) of the Sociedad Cooperativa Minero Metalurgica Sante Fe (the "Cooperativa") have brought legal action against the Cooperativa and its management, and have included as secondary defendants, Minera Mexicana el Rosario, S.A. de C.V. ("MMR", a subsidiary of the Company), one of its Mexican directors, Great Panther Resources (named but not served) and the General Manager of the Public Registry of Property and Commerce of Guanajuato, Mexico. The claimants are alleging that the proceedings leading to the approval of the sale of the Guanajuato mine assets did not fully meet with Cooperativa bylaws, and should be set aside, with claimants seeking unspecified damages, lost profits and payment of legal and other expenses.
It is the Company's belief that the dissident claimants are objecting to the value of the sale in light of rising silver prices. Mexican legal counsel for the Company advises that the suit is frivolous and without merit, in particular as they were closely involved with the proceedings at the time of the purchase and sale of the assets and confirm that the bylaws of the Cooperativa were closely and accurately followed. The purchase and sale agreement has been accepted and registered in the Public Registry of Property and Commerce of Guanajuato and the Public Registry of Mines, and the Company holds clear title to the property and assets.
MMR's legal counsel is assisting lawyers for the Cooperativa in dealing with this matter. In the meantime, daily operations at the mine are unaffected and the Company is continuing with its production, exploration and expansion plans.
ON BEHALF OF THE BOARD
Robert A. Archer, President & CEO
This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (together, "forward-looking statements"). Such forward-looking statements may include but are not limited to the Company's plans for production at its Guanajuato and Topia Mines in Mexico, exploring its other properties in Mexico, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risks involving the Company's operations in a foreign jurisdiction, uncertainty of production and cost estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of silver, gold and base metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Annual Report on Form 20-F for the year ended December 31, 2005 and reports on Form 6-K filed with the Securities and Exchange Commission and available at www.sec.gov and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.
SEC 20-F Statement Filed; Standard & Poor's Listed
FOR FURTHER INFORMATION PLEASE CONTACT:
Great Panther Resources Limited
Great Panther Resources Limited
(604) 608-1744 (FAX)