Samarium Group Corporation ("Samarium"), a private Canadian-based company active in sourcing gold and other base and precious metals projects in Colombia and other areas of the world, today announced that it has entered into an exclusive management contract with all of the owners and creditors of Frontino Gold Mines Ltd ("Frontino") which is based in Segovia, Colombia. Frontino is the largest gold mine in Colombia and has been in operation since 1854. Samarium was chosen from a number of potential suitors because the mine owners determined that what Samarium offered was the best solution for the long-term benefit of the mine and the economic region in which it lies.

Commenting on the execution of the contract, Blair Mullin, President & Chief Executive Officer of Samarium, stated, "This contract represents a major win for the owners, mineworkers, retirees, creditors, and the economic region in general. Companies from around the world are descending on Colombia seeking opportunities to capitalize on the improving business climate there, as well as the rising price of gold and other metals. That Samarium was able to capture the Frontino contract is a testament to the relationships that have been developed in Colombia." Dr. Volkmar Hable, Chairman and Founder of Samarium stated, "We all share a common vision of respect and tolerance, accountability, integration of community, transparency, and fair and honest dealings – the basis for building a profitable world-class mining company."

The contract is effective immediately and extends for four years. Key aspects of Samarium's contract with Frontino include the following:

- Manage the mines to world class standards,

- Restructure the mining plan,

- Arrange financing for and manage installation of new plant and equipment,

- Increase production to up to 20,000 ounces of gold per week,

- Restore the pension fund, and

- Develop and implement a sustainable management plan going forward.

Samarium is entitled to receive compensation in the form of gold and other metals production at a rate of 5% of production from the underground mine, and 10% of production from the accumulated tailings. Additionally, Samarium has a letter of Support from the City Council of Segovia and a mandate in its contract supporting Samarium land acquisition adjacent to Frontino.