GLR Galileo Resources Plc

 
TIDMGLR 
 
For immediate release 10 September 2012 
 
                             Galileo Resources Plc 
 
                         ("Galileo" or the "Company") 
 
Update on Due Diligence on Galileo's Acquisition of Rare Earth International's 
                           Rare Earth Opportunities 
 
Galileo Resources Plc, the AIM-quoted emerging African Rare Earth exploration 
company, is pleased to announce with reference to the Heads of Agreement 
("HoA") (announced 25 July 2012) with Rare Earth International Limited ("REI") 
that it has completed the due diligence review on the three rare earth projects 
in Zambia, Mozambique and Spain to its satisfaction in all respects except for 
the confirmation of the tenure, over the Nkwomba Hills rare earth deposit in 
Zambia, held under Large Scale Prospecting Licence No. 12198-HQ-LPL (the 
"Nkombwa Licence"). 
 
The licence administration centre (the "Cadastre") of the Zambian Mines 
Development Department is currently not releasing tenure licence documents for 
due diligence or any other purpose as the Ministry of Mines and Mining 
Development (the "Ministry") until recently had a moratorium in place on all 
licences held on record in order to clear various irregularities that have been 
"piling up for years". 
 
The Galileo board has a recent written opinion from the Ministry stating inter 
alia that it is the Ministry of Mines Judgment that (inter alia) the Nkwomba 
Licence is the sole Valid Mining Right over the entire area covered by the 
Nkombwa Licence, including the Nkombwa Hills rare earth deposit. 
 
The Company's board, having given due regard to the due diligence completed and 
the aforementioned official opinion on tenure, has conditionally approved the 
issue and allotment to REI of 5.25 million Galileo ordinary shares, subject to 
the Cadastre releasing the title documentation and confirmation that Nkombwa 
Licence is the sole valid Mining Right. A further announcement will be made as 
and when the shares are issued. 
 
In view of the aforementioned delays, the parties to the HoA have agreed 
through an amendment agreement to the HoA, to extend the times, as appropriate, 
for title due diligence and other time-related clauses in the HoA. 
 
The Company will update its shareholders on the outcome of the physical 
resolution of the Ministry and the moratorium. 
 
For further information, please contact: 
 
Colin Bird Tel +44 (0)20 7581 4477 
 
Chairman & CEO 
 
Andrew Sarosi/Robin ("Jock") Harmer Tel +44 (0) 1752 221937/+27 (0) 12 997 1058 
 
Executive Director/Technical Director 
 
Beaumont Cornish Limited, Tel +44 (0)20 7628 3396 
 
Nominated Advisor and Broker 
 
Roland Cornish/James Biddle 
 
Shore Capital Stockbrokers Limited Tel +44 (0)20 7408 4090 
 
Joint Broker 
 
Jerry Keen/Toby Gibbs 
 
Bishopsgate Communications Tel +44 (0)20 7562 3350 
 
Nick Rome/Anna Michniewicz/Ivana Petkova 
 
 
 
END 
 

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