Win-Eldrich Mines Limited - Purchase of Golden Phoenix Interest in Ashdown Project LLC; Passing of Chair Reuben Brant



    TORONTO, May 26 /CNW/ - Win-Eldrich Mines Limited (WEX-TSXV) today
announced that its wholly-owned Nevada subsidiary, Win-Eldrich Gold, Inc.
("WEG") has entered into formal agreements to purchase all of the interest of
Golden Phoenix Minerals, Inc. ("GPM") in Ashdown Project LLC ("APLLC"). APLLC
owns the Ashdown molybdenum mine located in northern Nevada. The purchase
price is U.S. $5.3 million to be satisfied by the issuance of a limited
recourse secured promissory note in the amount of U.S. $5.3 million. The note
bears interest at U.S. prime plus 2% computed from April 1, 2009, for a term
of 72 months with the first payment due in April 2010. The note is secured by
the assets and property of APLLC as well as WEG's shares in APLLC. The sole
recourse of GPM under the note in the event of default is foreclosure on such
collateral. As part of the transaction, WEG assumed ongoing obligations and
liabilities of APLLC. Certain past liabilities will be shared with GPM. As a
result, WEG will own through APLLC a 100% interest in the Ashdown property.
    WEG and GPM have also agreed that all ongoing disputes between them are
terminated and mutual releases were executed.
    Mr. Perry Muller, President of WEG has purchased the Ashdown mill,
previously leased to APLLC, for U.S. $100,000.00 paid in settlement of all
amounts owed to the previous lessors. Mr. Muller will lease the Ashdown mill
to APLLC and convey it to APLLC upon repayment of U.S. $100,000.00, plus a
loan fee of U.S. $10,000.00
    The Company also announced, with deep regret, the passing of Reuben
Brant, its Chair and long time Director. At the annual and special meeting of
shareholders to be held in June, 2009, management has proposed the election of
Peter S. Winn to the board. Mr. Winn has been a long time consulting geologist
to WEG and has played a significant role in the development of the Ashdown
mine.
    Perry Muller stated: "With Reuben's passing, the Company has lost a long
time friend and supporter. Mr. Brant spent many years nurturing and
supporting, morally, financially and professionally, the Company in its
endeavors. He will be greatly missed. Pete Winn will be a valuable addition to
the board. With the purchase of Golden Phoenix's interest in Ashdown and
settlement of all claims, which has been a significant distraction in the last
two years, it is expected that the Ashdown mine can be returned to
profitability once moly prices improve. We will now be able to devote our full
time and attention to advancement of the Asdown property".

    This news release includes certain forward-looking statements concerning
the future performance of our business, its operations and its financial
performance and condition, as well as management's objectives, strategies,
beliefs and intentions. Forward-looking statements are frequently identified
by such words as "may", "will", "plan", "expect", "anticipate", "estimate",
"intend" and similar words referring to future events and results, including
in respect of the recommencement of operations at the mine and return to
profitability of the mine. Forward-looking statements are based on the current
opinions and expectations of management. All forward-looking information is
inherently uncertain and subject to a variety of assumptions, risks and
uncertainties, including the speculative nature of mineral exploration and
development, fluctuating commodity prices, competitive risks and the
availability of financing, as described in more detail in our recent
securities filings available at www.sedar.com. Actual events or results may
differ materially from those projected in the forward looking-statements and
we caution against placing undue reliance thereon. We assume no obligation to
revise or update these forward-looking statements, except as required by
applicable law.

    
    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.
    





For further information:

For further information: Perry Muller, President and Director of
Win-Eldrich, at (402) 435-7206

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WIN-ELDRICH MINES LIMITED

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