Odin suggests mining law reason behind high volume

2008-08-19 05:30 ET - News Release

Mr. Stephen Stow reports

Odin Mining and Exploration Ltd., given unusual high volume of trading in Odin shares recently, is sharing the following:

On Aug. 14, 2008, International Trade Minister Michael Fortier of the Canadian government met with the Minister of Mines and Petroleum of Ecuador, Galo Chiriboga, in Quito. Mr. Fortier presented the case for a number of Canadian-listed companies in Ecuador, and how to address the current uncertainties faced by these mining companies in Ecuador.

No detail can be made available until a public statement is provided by the Canadian or Ecuadorian relevant ministries.

However, Odin was directly requested to make its own detailed submissions for delivery at that meeting, which was done. The company is encouraged by what it has read to date, after that meeting.

It appears from the relevant Ecuadorian presidential press release that the Ecuadorian mining law will only be approved after the Sept. 28 constitutional referendum in Ecuador.

As previously announced by the TSX Venture Exchange (see news issued in Stockwatch) on July 31, 2008, it accepted for filing Odin's steps to regulate its cash flow pending Ecuador's confirmation of its new mining law, by agreeing a shares-for-debt structure with its directors and in-country Ecuador management.

In particular, in Quito, Mauricio Ledesma has swapped his Ecuador-based management fees for Odin shares (140,000 shares), covering the period to June 24, 2008. Thereafter, any compensation for his services is accrued and shares will be issued quarterly in arrears, converting the then market rate into Odin shares. Mr. Ledesma's director fees for the period Dec. 31, 2007, to Jan. 31, 2009, have also been commuted in exchange for 100,000 shares. This is the same number of shares accepted by all directors for the same period.

Mr. Ledesma therefore has received 240,000 Odin shares from treasury in total.

Except as appears above, in relation to Mr. Ledesma's continuing management compensation in Quito, all compensation for services and directors fees in Vancouver or Quito is extinguished until Jan. 31, 2009. Therefore any cash obligation of Odin for management fees, services and directors fees has been extinguished until Jan. 31, 2009.