27 March 2006

Eastern Mediterranean Resources Public Ltd ("EMED") has significantly strengthened and increased its gold interests in Georgia by acquiring 100% of Tamari Limited Liability Company ("Tamari"). EMED previously acquired an 80% interest in the Zopkhito and Lukhra prospects owned by Tamari, as announced on 18 November 2005.

The key asset of Tamari is the Upper Racha licence area which covers an area of 1,600 square kilometres and, based upon a desk-top review undertaken by EMED, contains estimated Russian resources totalling 2.4 million ounces. This licence area covers several gold deposits in addition to the Zopkhito and Lukhra prospects.

The overall impact of the Tamari transaction and resources review has been to increase EMED's resource base in Georgia from 1.6 million ounces (80% beneficial ownership of 2 million ounces) to 100% of 2.4 million ounces. The antimony resource is additional.

The acquisition has cost EMED approximately ₤100,000, including initial due diligence costs and the licence conditions include commitments to spend a further ₤500,000 over two years.

Harry Anagnostaras-Adams, EMED's Managing Director, said, "100% ownership of the Upper Racha licence positions EMED as the holder of one of the largest exploration areas in Georgia. This transaction strengthens both the ownership arrangements and EMED's resource position."

[Announcement continues...]

Download the full announcement "EMED Acquires 100% of Tamari LLC in Georgia" (200KB pdf).