RIVERTON, Wyo., Sept. 5 /PRNewswire-FirstCall/ -- U.S. Energy Corp. (NASDAQ:USEG) and Crested Corp. (OTC:CBAG) (BULLETIN BOARD: CBAG) , natural resource exploration and development Companies, announced that their subsidiary, Sutter Gold Mining Inc. (TSX VENTURE: SGM) has retained IBK Capital Corp. of Toronto to evaluate strategic alternatives to maximize shareholder value. These alternatives may include the sale of the Company or the merger of the Company with a strategic partner, or any number of other available options.
SGM management and the board of directors will work with its financial advisor, IBK Capital Corp., to ensure that multiple alternatives available to the Company are properly considered and evaluated.
To date, SGM has invested approximately $24 million in its Lincoln Gold Project in California's Mother Lode for acquiring the properties, major exploration core drilling programs, acquisition of all major operating permits, and completion of the basic engineering design for a mill on the property. Behre Dolbear's NI 43-101 compliant pre-feasibility study on the Lincoln Project, which is anticipated to be completed in late September 2007, will incorporate an updated NI 43-101 compliant project resource estimate as a result of the recently completed Phase 1 (underground and surface) exploration drilling to develop the mine plan. A Phase 2 exploration program with a planned 2,300 meter surface drilling program is underway.
Hal Herron, president and CEO of SGM, said, "We're pleased to have engaged IBK and their professional staff to maximize value for our shareholders. IBK's reputation is first class and they have the worldwide network of contacts to help us evaluate the full range of alternatives available to us. Management and the board firmly believe that the Company is undervalued in light of the advanced stage of our gold project in the historic Mother Lode of northern California, our exploration program with Premier Gold Mines Limited in the historic gold district of El Alamo and the very strong gold market. With IBK Capital's expertise in handling mining transactions globally, I firmly believe they will effectively assist us in unlocking the true value of our assets for the substantial benefit of our shareholders." Mark Larsen, President and COO of U.S. Energy Corp. said, "As the largest single shareholder in Sutter Gold, we are pleased that management has taken this step to improve the visibility of the company in an effort to maximize its value. We feel that Sutter is significantly undervalued in light of the status of its advanced stage gold mine in California and we are confident that this effort will ultimately reflect in a significantly enhanced value of our Sutter holdings." About the Sutter Gold Mine The Sutter Gold project contains a 3.2 mile segment of the Mother Lode belt from which 10 historic mines produced 2.3 million ounces of gold. The historic mines bracket a one-mile-long portion of the Mother Lode belt with no historic gold production and which contains the Lincoln and Comet zones. The Lincoln and Comet zones were blind discoveries that did not outcrop at surface and which represent the first significant new gold discoveries made along the Mother Lode belt in the last 50 years. The Sutter Gold project has been the subject of considerable modern exploration activity, most of it centering on the Lincoln and Comet zones, which are adjacent to each other and together referred to as the Lincoln project. A total of 101,385 feet of drilling have been accomplished in 230 diamond drill holes, and modern underground development consists of a 2,850-foot declined ramp with 2,400 feet of crosscuts plus five raises. The historic gold production was documented in a detailed report completed by Mark Payne, the consulting geologist to Sutter Gold and a qualified person as defined by National Instrument 43-101. Further information is available at the Company's Lincoln Project and El Alamo, Mexico gold concession at http://www.suttergoldmining.com/.
ABOUT U.S. ENERGY CORP. AND CRESTED CORP.
Disclosure Regarding Mineral Resources
Under SEC and Canadian Regulations;
And Forward-Looking Statements The Company owns or may come to own stock in companies which are traded on foreign exchanges, and may have agreements with some of these companies to acquire and/or develop the Company's mineral properties. Examples of these other companies are Sutter Gold Mining Inc., and Kobex Resources Ltd. These other companies are subject to the reporting requirements of other jurisdictions.
United States residents are cautioned that some of the information available about our mineral properties, which is reported by the other companies in foreign jurisdictions, may be materially different from what the Company is permitted to disclose in the United States.
This news release includes statements which may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect," or similar expressions. These statements are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, future trends in mineral prices, the availability of capital, competitive factors, and other risks. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revision or changes after the date of this release.
For further information on the differences between the reporting limitations of the United States, compared to reports filed in foreign jurisdictions, and also concerning forward-looking statements, please see the Company's Form 10-K ("Disclosure Regarding Forward-Looking Statements"; "Disclosure Regarding Mineral Resources under SEC and Canadian Regulation"; and "Risk Factors"); and similar disclosures in the Company's Forms 10-Q. DATASOURCE: U.S. Energy Corp.
CONTACT: Mark Larsen, President or Hal Herron, Sr. V.P., both of U.S.
Energy Corp. +1-307-856-9271 Web site: http://www.suttergoldmining.com/
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