TORTOLA, British Virgin Islands, December 10 /PRNewswire/ -- BSG Resources Guinea (BSGR Guinea) is pleased to announce that it has been awarded Simandou Block 1 and Block 2. BSGR Guinea welcomes this opportunity to work together with the Government and the people of the Republic of Guinea to create a world class iron ore mine in Guinea.

BSGR Guinea is a wholly owned subsidiary of BSG Resources Limited (BSGR Ltd), a company with its head office on Guernsey. BSGR Ltd is a diversified natural resource company active since 1998 with a global presence, mainly active in Africa and CIS. BSGR Guinea has been active in the Republic of Guinea since the signing of a Memorandum of Understanding with the Government of Guinea in February 2006. Since its inception in Guinea, BSGR Guinea has successfully completed three exploration programmes covering iron ore at Simandou in eastern Guinea and bauxite in northern Guinea.

BSGR Guinea focuses on its prime iron concessions in the Simandou Range in the eastern part of Guinea. Exploration results so far indicate a significant iron ore tonnage in the newly discovered extension to the Simandou South Range called Zogota. BSGR Guinea established three base camps from where its operations are monitored, in Kerouane, Nzerekore and Zogota and currently employs 500 people as part of its extensive drilling campaign to prove the anticipated significant iron ore tonnage. The addition of Simandou Block 1 and Block 2, two prime iron concessions in an area that has been recognized as one of the largest untapped high quality iron ore resources in the world today, not only significantly adds to the resource tonnage of BSGR Guinea but also presents it with an opportunity to define and extend its world class iron ore deposit in Guinea. BSGR Guinea has already started with planning the extension of the phase 2 exploration programme to include Block 1 and Block 2.

BSGR Guinea is committed to play a major role in developing the huge potential of this significant asset and create substantial employment, income and major improvement in infrastructure for the people of Guinea.

For further information, please refer to our website at http://www.bsgresources.com.

Marc Struik, Director General, BSG Resources Guinea.

Marc Struik, Director General, BSG Resources Guinea, +44-20-7529-6600, info@bsgresources.gg