Gentry Announces Financial Exposure to Canadian subsidiaries of SemGroup, L.P.

    CALGARY, July 30 /CNW/ - (GNY-TSX) - Gentry Resources Ltd. ("Gentry" or
the "Company") announces an estimated potential financial exposure of
approximately $4.5 million to SemCanada Crude Company ("SemCrude") and
SemCanada Energy Company ("SemEnergy"), each a subsidiary of SemGroup, L.P.
("SemGroup"), relating to the marketing of a portion of the Company's crude
oil and natural gas production for the month of June and the first 22 days of
July, 2008.
    SemGroup, a mid-stream service company, filed a voluntary petition for
reorganization under Chapter 11 of the U.S. Bankruptcy Code and each of
SemCrude and SemEnergy filed for creditor protection in Canada. As of this
date, the Company is not certain what portion, if any, of its potential
financial exposure will be collectible.
    The Company has made alternative marketing arrangements effective July 23
and does not consider the exposure to be material to its overall financial
position. Gentry does not anticipate that the exposure will impair its ongoing
capital expenditure programs or affect the completion of its Plan of
Arrangement with Crew Energy Inc.
    Gentry plans to release its report on the financial and operational
results for the second quarter of 2008 prior to the opening of business on
August 14, 2008. This report will also include an update on the current
affairs of the Company.


    This press release contains forward-looking statements relating to future
events or future performance. It is management's assessment of Gentry's
potential exposure arising from the credit protection actions taken by
SemGroup, L.P. and its Canadian subsidiaries based on information available at
the time.
    Certain disclosure in this press release contains forward-looking
statements that involve risks and uncertainties. Such information, although
considered reasonable by Gentry at the time of preparation, may prove to be
incorrect and actual results may differ materially from those anticipated in
the statements made. For this purpose, any statements contained herein that
are not statements of historical fact may be deemed to be forward-looking
statements. Such risks and uncertainties include, but are not limited to:
insolvency and bankruptcy proceedings and decisions of the court, monitor,
trustee in bankruptcy, SemCrude, SemEnergy and other SemGroup entities and
Crew Energy Inc in connection with the insolvency and bankruptcy proceedings;
exploration, development and production risks; insurance; commodity prices,
markets and marketing of crude oil, liquids and natural gas; substantial
capital requirements; liquidity; competition; environmental risks; reserves
replacement; reliance on operators and key personnel; corporate matters;
permits and licenses; additional funding requirements; aboriginal claims;
issuance of debt; availability of drilling equipment; access restrictions;
cost inflation; title defects; uncertainty of reserve information; Kyoto
protocol; and government regulation and taxation.

For further information:

For further information: Hugh Ross, President & Chief Executive Officer,
(403) 264-6161; Ketan Panchmatia, Chief Financial Officer, (403) 264-6161;
Roger Fullerton, Manager, Investor Relations, (952) 929-7243, Website:, Email:, TSX Symbol: GNY

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