TORONTO, ON - September 20, 2005 - Bolivar Gold Corp. (TSX: BGC) wishes to comment on the trading activity and volatility associated with the price of its common shares. Today, the President of Venezuela, Mr. Hugo Chavez Frias, made comments related to the development of the Las Cristinas property by a "National Mining Company". These comments have no impact on the agreements recently reached by Bolivar with the Venezuelan Ministry of Basic Industries and Mining (the "Ministry") and Corporacion Venezolana de Guayana ("CVG") in connection with Bolivar's properties (including the Choco 4 and 10 project).
Bolivar executed a Strategic Agreement with the Ministry and CVG in July of this year defining the final details for the development of Choco 4 and 10 and for the participation of CVG in the project. Since then, the project, employing 300 people, has been brought into production and is in compliance with all applicable Venezuelan environmental, mining and fiscal regulations. Several high ranking officials of the Ministry and CVG have visited the project and praised the quick development of the properties from the exploration stage to production. Choco 4 and 10 have all required environmental permits, they are in production as expressly authorized by the Ministry, are in compliance with all applicable regulations and have no small miners present within the project area. Bolivar continues to operate its mining project as planned with the support of the Venezuelan Government.
In fact, the Vice Minister of Investment and Promotion for the Ministry described the strategic plan of such agency for fostering private and public investment in the State of Bolivar, Venezuela in the Venezuelan press and has been quoted as saying that this strategic plan specifically includes, among others, the development of the Choco 4 and 10 gold mining project by Bolivar.
Serafino Iacono, Chairman and CEO of Bolivar Gold stated, "We have enjoyed a very strong relationship with the Venezuelan government and in particular with the Ministry of Basic Industries and Mining and CVG and look forward to continuing that relationship in the future."
Bolivar Gold Corp. is a gold exploration and development company. At its 95%-owned Choco 10 property in Venezuela, drilling has confirmed near-surface proven and probable ore reserves of 1.3 million ounces. The 6,000 tonne per day Choco 10 operation commenced commercial production in August 2005. Bolivar Gold intends to exploit this reserve while continuing to pursue the exploration potential of the Choco 10 property, as well as throughout the El Callao district in conjunction with its joint venture partner, Gold Fields Limited. Additional information on Bolivar Gold can be found by visiting the company's website at www.bolivargold.com.
Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated in such statements.
For further information:
Robert Doyle
Chief Financial Officer
(416) 360-4653
Renmark Financial Communications Inc.
Sylvain Laberge : slaberge@renmarkfinancial.com
Antoine Di Paola : adipaola@renmarkfinancial.com
Media - Cynthia Lane : clane@renmarkfinancial.com
Tel. : (514) 939-3989
