Thistle Mining Inc. - Suspension of Trading



    CALGARY, March 29 /CNW/ - Thistle Mining Inc ("Thistle) (AIM: TMG) wishes
to announce that on March 27, 2007 it has received written notices from its
two major shareholders and creditors, MC Resources Limited ("MC") and Casten
Holdings Limited ("Casten") indicating that they are not willing to defer
payments of principal and interest due on April 1, 2007.
    The amount payable on this date, assuming a CAD$: US $ exchange rate of
1.1578, is US $24.74 million comprising of US $12.371 million and US
$12.369 million owing to MC and Casten respectively. Pursuant to the terms of
the credit agreements and loan notes, failure of Thistle to pay the April 1
payment in full will constitute an event of default. Upon the occurrence of an
event of default, MC and Casten are entitled under the credit agreements and
related loan notes to immediately accelerate and demand payment of all
indebtedness and to enforce the security that Thistle has granted to MC and
Casten, including, without limitation, the pledge of shares of Thistle's
subsidiaries, including Towoong Mining BV which holds the shares of CGA Mining
Limited ("CGA"). The CGA shares were acquired by Thistle in a transaction that
completed earlier this month, which is described in greater detail below. The
total amount of indebtedness owing to MC and Casten is estimated to be US
$51.99 million. In addition withholding tax on interest to be paid is
estimated at US $2.203 million. For clarity, the indebtedness owing to MC and
Casten on April 1, 2007 is summarized below.

    
               Indebtedness due to MC and Casten ($ millions)

          Indebtedness before application of CGA proceeds     51.44

          Payment of CGA proceeds on March 20, 2007           26.70

                                                             -------
          Debt due and payable and interest payable on
           April 1, 2007                                      24.74
                                                             -------
                                                             -------

          Debt due after April 1, 2007                        27.25

                                                             -------
          Total debt and interest owing to
           Casten & Meridian                                  51.99
                                                             -------
                                                             -------
    

    Thistle does not have the cash resources or access to cash resources to
meet the amount payable to MC and Casten on April 1, 2007 and in the absence
of a restructuring agreement with MC and Casten will be in default of the
credit agreements and related loan notes. Each of MC and Casten has stated
that it reserved the right to demand payment in full under the credit
arrangements and loan notes, including the right to realise on its security.
    Each of MC and Casten currently holds 35% of the issued shares of
Thistle.
    At a meeting of the independent directors convened on March 28, 2007
specifically to discuss this matter, the independent directors of Thistle
unanimously determined that Thistle is in serious financial difficulty and
that it is in the interests of shareholders that management use best
endeavours to reach agreement on the restructuring of debt on acceptable
terms. Management are cautiously optimistic that this can be achieved.
Thistle's independent directors have requested that Thistle's shares be
suspended from trading on the AIM market of the London Stock Exchange plc
pending satisfactory resolution of this matter.

    The CGA Transaction. All the conditions related to the sale of 100% of
the shares of Philippine Gold Ltd, a wholly-owned subsidiary of Thistle, and
Thistle's other interests in the Masbate gold project to CGA (ASX: CGX) (the
"Transaction") subject to the terms and conditions set out in the original
agreement dated January 31, 2007 and as amended on March 15, 2007 ("SPA") have
been satisfied and the transaction has been completed.

    Pursuant to the SPA, the consideration that was paid amounted to in
aggregate US$51 million of which US$21 million was payable in ordinary shares
of CGA (the "CGA Shares"). Applying the pricing formula Thistle received
40,985,538 CGA Shares on Tuesday March 19, 2007. This represents an
approximate 25.4% interest in CGA. In addition on March 19, 2007 Thistle
received US $28,887,430. This payment enabled Thistle to pay down
US$26.70 million of the debt owing to MC and Casten on March 20, 2007 in
accordance with terms of credit agreements in place with MC and Casten.

    This news release contains forward-looking statements with the meaning of
applicable securities laws including amongst others, statements made or
implied above relating to the Company's objectives, strategies to achieve
these objectives, future cash flow and financing requirements, and similar
statements concerning anticipated future events, results, circumstances,
performance or expectations that are not historical facts. Such
forward-looking statements reflect the Company's current beliefs and are based
on information currently available to management. These statements are not
guarantees of future performance and are based on the Company's estimates and
assumptions that are subject to risk and uncertainties inherent in the
business of the Company including those discussed in the Company's materials
filed with the Canadian securities regulatory authorities from time to time,
which could cause the actual results and performance of the Company to differ
materially from the forward-looking statements contained in this news release.
Although the forward-looking statements contained in this news release are
based upon what the Company believes are reasonable assumptions, there can be
no assurance that actual results will be consistent with these forward-looking
statements. All forward-looking statements in this news release are qualified
by these cautionary statements. These forward-looking statements are made as
of the date hereof and the Company, except as required by applicable law,
assumes no obligation to update or revise them to reflect new information or
the occurrence of future events or circumstances.





For further information:

For further information: Andy Graetz, Chief Financial Officer at + 27 82
929 5562, or email to agraetz@disselgroup.com; Gerry Beaney, Maureen Tai or
Troy MacDonald, Grant Thornton Corporate Finance at +44 (0) 207 383 5100

Organization Profile

THISTLE MINING INC.

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