Mosquito Consolidated Gold Mines Limited Announces Update on CuMo Project

Vancouver, B.C., October 31, 2012. Recently appointed new management of Mosquito Consolidated Gold Mines Limited (TSX-V:MSQ) (“Mosquito” or the “Company“) wishes to update shareholders on the current status of Mosquito’s flagship CuMo project in Idaho.

Management has consulted with the authors of the March 15, 2008, May 13, 2009 and May 2011 independent technical reports containing mineral resource estimates for the CuMo project and the preliminary economic assessment dated November 18, 2009 (collectively, the “Technical Reports”) prepared in respect of the CuMo project and is of the view that there is no need to amend the Technical Reports as they were materially accurate and correct at the time they were produced. All authors have confirmed the validity of methodology used to calculate the mineral resource estimates contained in their respective Technical Reports and as such, management will continue to use the same methodology to calculate recovered values and/or equivalents. Management notes that the methodology used is consistent with that used by two of the major molybdenum producing mines in North America.

Management also advises that the Company’s 2012 drilling program undertaken under the direction of previous management is complete and that core from the last holes are being processed and being made ready for assay. Drilling of a total of 4,713 meters (15,463 feet) in nine (9) holes was completed. All holes intersected molybdenum-bearing mineralization with some holes ending prematurely in higher grade areas. Results from the drilling program will be announced as soon as they become available. Management is also compiling analytical results for two holes drilled in 2011 (holes 11-58 and 11-59). Management expects to release the results from these previously unreleased holes shortly.

Management has also re-established contact with the United States Forest Service (“USFS”) and begun to resolve a host of outstanding issues that have arisen over the past year. As disclosed on September 5, 2012, the United States District Court — Idaho District (the “Court”) determined in favour of the USFS and its finding that the CuMo project would have no significant impact upon sensitive species within the Boise National Forest, which finding had been challenged by three local environmental groups. The Court directed the USFS to take a “hard look” at potential environmental impacts of the project on groundwater and hydrology in the area affected by exploration drilling. The USFS is preparing a supplement to the CuMo project’s approved Environmental Assessment in respect of this matter, which management believes should provide assurance to the Court that the potential impacts of the Company’s exploration program on groundwater and hydrology have been adequately evaluated. Management is committed to working cooperatively with the USFS and is confident that the use of state-approved drilling practices, the nature of the project’s geology, the limited amount of groundwater supplies at the project, and the Company’s well-designed and comprehensive Plan of Operations should lead to an expanded and productive 2013 drilling season.

Recently-appointed management has determined to focus Mosquito’s activities towards advancing the CuMo project and as such has decided to cease carrying on its drilling business and to sell its drilling assets. Management has completed an inventory-taking of hundreds of items of drilling equipment owned and purchased by its wholly-owned subsidiary, Kirkness Diamond Drilling, over the past three years. The next step is to assess the state of all of the drilling equipment with a view to establishing a fair market value of the same in preparation for the sale of the assets to interested third parties, which have already been in contact with management. Management wishes to thank the Company’s exploration staff in Idaho for their excellent job of securing some of the major drilling assets over the past two weeks since new management was appointed.

The Board sincerely thanks Mosquito shareholders for their tremendous support and patience in effecting needed change at Mosquito.

On behalf of the Board of Directors of
MOSQUITO CONSOLIDATED GOLD MINES LIMITED

Shaun Dykes
Chief Executive Officer

For further information, contact:
Shaun Dykes, Chief Executive Officer
American CuMo Mining Corporation
Tel: (604) 689-7902
Email: geologic@telus.net

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking information

This release contains “forward-looking information” within the meaning of applicable Canadian securities legislation including, but not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as the Company’s ability to conduct drilling during 2013 and the Company’s ability to successfully sell its drilling assets Often, but not always, forward-looking information can be identified by the use of words such as “expects”, “estimates”, “potential”, or “believes” or describes a “goal” or variation of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved.

Forward-looking information is based on a number of material factors and assumptions, including, the result of drilling and exploration activities, that contracted parties provide goods and/or services on the agreed timeframes, that equipment necessary for exploration is available as scheduled and does not incur unforeseen breakdowns, that no labour shortages or delays are incurred, that plant and equipment function as specified, that no unusual geological or technical problems occur, that the Court will not intervene with the Company’s proposed exploration activities at the CuMo project and that laboratory and other related services are available and perform as contracted. Forward-looking information involves known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of molybdenum; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in the company’s publicly filed documents. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.

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2022-09-30 13:36pm EDT