Dissident has no strategy / No institutional support - Shareholders urged to support incumbent Board



    Trading Symbol TSX: GGC

    VANCOUVER, June 19 /CNW Telbec/ - Genco Resources Ltd. ("Genco") today
commented on the recent press releases issued by James Anderson (the
"Dissident").

    Institutional Support

    In one of the Dissident's most recent press releases, he seeks to
minimize the fact that he has received no support from financial institutions
or mining analysts for his attempt to take control of Genco. Instead, the
Dissident continues his campaign of misinformation. Most importantly, he has
failed to provide any cogent plan for Genco in the event that he is
successful.
    In response to an analyst report issued by Andrew Kaip of Haywood
Securities Inc., which provided support for the current management and board
of directors (the "Board"), the Dissident stated that Mr. Kaip: "is overly
worried that key development personnel, especially President Greg Liller, may
depart if we win....we are confident that we can hire new and highly qualified
mine management personnel." This statement, along with much of the Dissident's
earlier rhetoric, evidences his inexperience within the mining industry. As
most investors are aware, the rise in metal prices and mining activity over
the last several years has created a great demand for talented personnel, such
as Mr. Liller. Such personnel are crucial to our operations and our mine
plans. The Dissident's indifference towards the retention of management, if
allowed to prevail, could seriously disrupt Genco's ability to effect its
operational plans.
    Robert Gardner, QC, the Chairman of the Board, commented that: "Your
Board highly values Mr. Liller and our other management personnel, and
believes that these people are key to Genco's future expansion of La Guitarra.
We completely disagree with the Dissident's contention that Mr. Liller and
other mine management personnel are easily replaceable."

    Achievements and Long-Term Plans

    The Dissident has attempted to downplay the key achievements of Genco's
management and Board towards its comprehensive long-term plan for developing
La Guitarra into a world-class silver mine. For example, in 2007 we expanded
the infrastructure at La Guitarra in conjunction with our long-term growth
plans. In this regard, we:

    
    - constructed 4,855 metres of ramps, cross cuts and drifts;
    - conducted negotiations with stakeholders to retain long-term surface
      rights;
    - completed 27,106 metres of diamond drilling consisting of 12,997 metres
      of reverse circulation drilling and 14,109 metres of core drilling;
    - opened new ore passes and ventilation raises;
    - constructed new warehouse facilities;
    - upgraded the current mill; and
    - acquired additional mining equipment.

    The Dissident focuses on the delay of the feasibility study, which was
originally scheduled to be completed in June 2008 and is now on track to be
completed in August 2008. As previously disclosed, this delay was caused by
backlogs at independent assay laboratories. The delay has been unfortunate,
but management is confident that it will not significantly affect permitting,
financing or construction of the planned mine expansion and new mill. Further,
current management have not sat idle during this delay and have focused on
introducing more efficient mining techniques and redeveloping areas of the
existing mine to permit increased production and mill utilization in the near
term.
    The Dissident claims that the current management and Board lacks a mine
plan. This is untrue. There is both a mine plan, consisting of a comprehensive
plan broken down by month showing planned production, development and
exploration by area, which takes into account the need for production today
and development for future production, and a long-term plan to develop the
mine. At the La Guitarra mine, Genco anticipates significant infrastructure
and construction projects during 2008 and 2009. Prior to the completion of the
feasibility study, management has: (i) upgraded communication systems; (ii)
expanded maintenance capabilities; and (iii) commissioned a new expanded assay
lab. As part of the feasibility study several design projects have been
undertaken. These include design work for a new expanded tailings impoundment,
an updated and expanded mine plan, design work for the construction of a
possible leach pad and associated infrastructure and the design of a new mill
and cyanide circuit. In the second half of 2008, when the feasibility study
and design works are complete, management plans to immediately initiate
construction and infrastructure works aimed at having all works substantially
complete by the end of 2009.

    Experience

    The Dissident has provided no relevant information regarding the prior
business experience of himself and his proposed nominees. Instead, the
Dissident attempts to distract from his lack of mining and public company
experience by personally attacking a member of the incumbent Board, Gordon
Blankstein, through reference to the bankruptcy of GST Telecommunications Inc.
("GST") in 2000. The bankruptcy referenced by the Dissident occurred almost
five years after Mr. Blankstein's tenure with GST ended. Mr. Blankstein served
as chairman of the board of GST only until 1996.

    Recent Developments

    Eduardo Luna has tendered his resignation as a director of Genco and will
not be standing for election at the forthcoming Annual General Meeting. The
Board has the greatest respect for Mr. Luna and wishes to thank him for his
past contributions to Genco.
    The Dissident issued a press release late yesterday announcing Mr. Luna's
resignation, criticizing Genco for failing to do so. The Dissident was likely
unaware that Genco was in discussions with Mr. Luna regarding his resignation.
Announcing Mr. Luna's resignation, while such discussions were ongoing would
have been premature. Shareholders should note that Mr. Luna's withdrawal also
indicates that he is not willing to serve as a director on a board that
includes the Dissident slate.
    For clarity, Genco also announces that Mr. Goodman is no longer a member
of the management slate as a consequence of his resignation from the Board.

    How to Cast your WHITE proxy

    You can support Genco by voting the WHITE proxy form shareholders received
in the mail with a VOTE FOR the resolutions contained therein. If you have
already voted using the Dissident proxy you have every right to change your
vote by simply executing the WHITE proxy. It is only your latest dated proxy
that will be counted. Your WHITE proxy must be voted by any one of the methods
described on the form no later than 11:00 a.m. (Vancouver time) on Tuesday,
June 24, 2008. The time limit for the deposit of proxies may be waived by the
Board at its discretion without notice.
    The Board recommends that you discard any materials received from the
Dissident.
    If you have any questions about the information contained in the news
release or require assistance in completing your WHITE proxy, please contact
Genco's proxy solicitation agent at:

                     Kingsdale Shareholder Services Inc.
               North American Toll Free Number: 1-866-581-1024
                         Facsimile No: 1-866-545-5580

       Please visit our website for regular updates at www.gencoresources.com

    The Toronto Stock Exchange does not accept responsibility for the
    adequacy or accuracy of this release.
    




For further information:

For further information: Wayne Moorhouse, Vice-President, Finance and
Corporate Secretary, (604) 682-2205, gencoinfo@telus.net; Renmark Financial
Communications Inc.: Neil Murray-Lyon: nmurraylyon@renmarkfinancial.com; Dan
Symons: dsymons@renmarkfinancial.com, (514) 939-3989, Fax: (514) 939-3717,
www.renmarkfinancial.com

Organization Profile

GENCO RESOURCES LTD.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890