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| BGL-TSXV January 7, 2008 BANDERA PROVIDES ADDITIONAL INFORMATION ON PROPERTY DISPUTE Further to our news release issued Friday, January 4th, 2008, Bandera Gold Limited ("BGL") wishes to advise shareholders further regarding the November 15, 2005 option agreement with Minera San Jorge, S.A. de C.V. (?MSJ?) to acquire a 60% interest in the Cinco Minas and Gran Cabrera Mexican mining properties (the ?Properties?) and how BGL proposes to deal with that situation. The primary objective of BGL's management is to build value for shareholders. Management believes that the Properties represent strong assets that have the potential for development into stable, profitable mines. Management's strategy has been to dedicate resources to allow for the rapid advancement of the Cinco Minas and Gran Cabrera projects, in furtherance of which, BGL has proceeded ethically and responsibly with its partners and the local population to realize this potential as it has progressed with development. BGL has contributed approximately $7 million in project funding, and issued share capital to secure title in the Properties. BGL has thoroughly accounted for all financial transactions, and documented the relationship with MSJ throughout the process. As a prerequisite to engaging in the business relationship with MSJ, BGL ensured that the terms thereof were meticulously detailed in the option agreement, which is a binding contract. BGL has honoured the terms of this contract, and fulfilled its obligation to earn its 60% interest in the Properties. This interest is not subject to unilateral cancellation and may not be revoked. BGL's legal counsel has reviewed all of the documentation and considered the circumstances of the situation that has arisen, and concluded that the issues at hand represent a deliberate breach of contract by MSJ. BGL continues to seek a negotiated solution to the situation with MSJ, so the project can move forward. BGL regards this breach as an unfortunate and unnecessary disruption to the ongoing operations of BGL in Mexico. Management has worked to respond to the challenges from MSJ. Management's priority going forward is to resolve the dispute that has arisen so that BGL may continue with its development strategy, while at the same time to consider all action necessary to protect the interests of shareholders. BGL continues to seek a negotiated solution to the situation with MSJ so the project can move forward, however BGL will vigorously defend its interests and work to ensure that further disruptions of a similar nature can be prevented in the future. BGL remains well financed, and well represented in Mexico to allow BGL to consider other opportunities to build shareholder value while the ongoing dispute with MSJ is pending resolution. Management will provide regular updates on the progress of its actions, as it continues its efforts to build lasting shareholder value in the future. On behalf of the Board Kelvin Williams President and CEO For further information please contact: Kelvin Williams, President and CEO (780) 465-4129 Web: www.banderagold.com Or Micro Cap et al, Investor Relations at: (877) 642-7622 E mail: info@microcapetal.com The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Information provided herein contains forward-looking statements. The reader is cautioned that assumptions used in the preparation of such information, which are considered reasonable by Bandera at the time of preparation, may prove to be incorrect. Actual results achieved will vary from the information provided and the variations may be material. There is no representation by Bandera that actual results achieved will be the same in whole or in part as those indicated in the forward-looking statements. |
