OREANDA-NEWS. Minera IRL SA is responsible to report to shareholders the following developments:

·    An announcement was sent by the Ollachea Community reporting that the Ollachea Gold Project is at serious risk of being paralyzed indefinitely; and

·    The resignation of the Financial Controller, Carlos Ruiz de Castilla, who was based in Canada and working for Minera IRL Ltd reporting to the current Board.  He resigned for ethical reasons, disputing the veracity of press releases issued by the parent Company Minera IRL Ltd

Announcement from the Ollachea Community

The Community of Ollachea, located where Minera IRL wishes to develop its gold project, delivered a declaration to Minera Kuri Kullu SA (subsidiary of Minera IRL SA), asking that it be made public.  The release expresses their indignation at the statements and lack of respect by the actual Board of Minera IRL Ltd, represented by Non Executive President Jaime Pinto.

Their declaration states that the Community will take the decision to paralyze the project indefinitely if Mr Jaime Pinto persists in his false statements and in his intent to divide the Community.  They explain that Mr Pinto, exactly as his predecessor Daryl Hodges, has disturbed the Community peace and shown no respect by distributing leaflets without reference to the elected authorities of the Community.

The leaflet signed by Mr Pinto and distributed in the Community states the opinion that the Community's decisions have been manipulated and is questioning the validity of letters sent by the Community Board.  The Community declaration states "It is a grave accusation and insult against the dignity of the Community and we feel absolutely offended by the statements distributed in this document."

The Board of Minera IRL Limited circulated the unauthorized leaflets on 11th November, and then on 13th November announced that it was holding meetings with certain community members.  In the face of this, the Community announcement demands that Mr Pinto "abstain from speaking about our Community and making false and misleading statements publically."

The Community also stated that they wish to maintain the good relations that they have had for more than eight years with Minera Kuri Kullu SA and that their Honorary Community Member Diego Benavides be respected.  They also ratified their agreement with the development of a finance package for US$240 million with COFIDE (Peruvian development bank) in order to build the Ollachea Gold Project.  The Community stated its support for the appointment of the new Board at the EGM on the 26th November. 

Resignation of the Financial Controller for Minera IRL Limited, Canada

The Financial Controller of Minera IRL Limited in Canad?, Carlos Ruiz de Castilla, presented his resignation on the 11th November, after 2.5 years working with the Company.  The main reason  stated was for ethical reasons and specifically that he did not wish to be associated with false and misleading information as presented in press releases by the parent Company, Minera IRL Limited. 

Mr Ruiz also mentioned undue pressure by the Board of Minera IRL Limited "I was accused of unduly resisting payments just because I tried (unsuccessfully) to obtain proper evidence before authorizing a wire transfer."  Mr Ruiz saw the need to seek professional advice, receiving the recommendation not to bend to pressures and if it continued to resign from the position.

The Controller affirmed that hostilities between the parent Company and its subsidiaries in Peru had escalated to "all out war" with unsubstantiated accusations being used by the current Board.  Mr Ruiz wrote "I have discussed with two members of the Board my concerns on several issues, most of which had been made public through press releases.  As a result, I am suffering from a conflict of conscience, which I find distressing and which has taken a toll on my health."

Mr. Ruiz was responsible for internal financial and economic controls for the Company, and had assumed the responsibilities of CFO, Brad Boland, to whom he had previously reported, after Mr Boland had irrevocably resigned the previous 28th September.