January 02, 2014

Vancouver, BC, - Mediterranean Resources Ltd. (TSX: MNR; Frankfurt: MHM1) ("Mediterranean" or the "Company") wishes to advise that it has entered into an Agreement with Lionsbridge Pty Ltd, an Australian company, controlled by the Wesson family.

Under the terms of the agreement:
  • Lionsbridge will raise CAD$2-7 million CAD as a private placement into MNR
  • MNR's Board is committed to initiate all appropriate actions necessary to affect the Agreement.
  • The Antimony projects in Spain (currently in a subsidiary called International Antimony Mines) will be spun out of MedRes as a separate listing on the TSX-V with Christopher Ecclestone as its CEO. MNR will seed the new entity with sufficient capital to ensure its independence when the shares of the newco have been distributed to the shareholders of MNR.
  • At the Close of the financing, MNR's current management will resign their positions. Two of the existing directors will remain until the Antimony spinout transaction has closed and then subsequently resign from the MNR BOD.
  • Lionsbridge will take over management of MNR. The board will be comprised of five members, two insiders a Chairman/CEO and director appointed by Lionsbridge, one independent director nominated by Lionsbridge and two further independent directors to compliment board skill base
  • Lionsbridge's management contract is to be conducted on a cost + fee basis
  • Westech, a consultancy owned by the Wesson family, will be retained by the company for project engineering and are committed to complete the remaining engineering requirements of the Turkish project on the same costs + overheads basis. However, certain restrictions prevent Lionsbridge personnel from receiving Westech's engineering services

The principal of Lionsbridge is Brian Wesson (MBA) an engineer with extensive experience in the management and operations of natural resource assets. Brian is a Fellow of the Australian Institute of Mining and Metallurgy and a Fellow of the Australian Institute of Company Directors. Brian served as Chief Executive Officer, Director and President at Woulfe Mining Corp. a listed TSX-V company from December 17, 2009 until February 27, 2013. Previously he was the Chairman, CEO and Owner of the Vatukoula Gold Mine, formerly Emperor Gold Mines. He is the Principal of Westech International Pty Ltd. He has over 30 years of experience in the resource and energy sectors. Brian started his career as an engineer with Rand Mines Limited South Africa. He qualified in 1983 and was appointed as a senior manager at Harmony Gold Mine before holding technical management roles on East Rand Proprietary Mines, Durban Roodepoort Deep and Vatukoula Gold Mine.  He served as the Chairman of the Sydney Branch of the Australasian Institute of Mining & Metallurgy. Brian has served on several natural resource boards throughout the world.

The board of MNR views this proposal as the best way to move forward both its Turkish projects and its nascent Antimony business in Spain

About Mediterranean Resources
The company is developing two mines located at its 100%-owned Red Mountain (K