GeoProMining announces agreement with Sterlite Gold shareholder



    ROAD TOWN, TORTOLA, BRITISH VIRGIN ISLANDS, Aug. 15 /CNW/ - GeoProMining
Ltd. ("GeoProMining") announced today that it has entered into an agreement to
acquire, directly or indirectly, 223,417,031 common shares (or approximately
84.2%) of Sterlite Gold Ltd. ("Sterlite Gold") from Vedanta Resources plc
("Vedanta") pursuant to an offer (the "Offer") to acquire all of the issued
and outstanding common shares of Sterlite Gold. GeoProMining has agreed to
make the Offer by no later than August 22, 2007 provided the conditions to
making the Offer are satisfied.
    The Offer price is to be US$0.3845 in cash per common share. This
represents a premium of approximately 211% over the closing price of the
common shares of Sterlite Gold on the TSX on August 13, 2007, the day prior to
the announcement by GeoProMining that it had entered into an agreement with
Vedanta to acquire its Sterlite Gold common shares, based on the Bank of
Canada noon rate. GeoProMining has agreed to alternatively acquire under the
Offer all of the shares of any holding company that holds common shares of
Sterlite Gold provided certain conditions are met.
    Under the agreement, Vedanta has agreed to deposit or cause to be
deposited under the Offer all of the Sterlite Gold common shares beneficially
owned by it or all of the shares of any holding company that holds such common
shares of Sterlite Gold. In connection with the Offer, GeoProMining will lend
Sterlite Gold sufficient funds to repay the indebtedness of Sterlite Gold and
its subsidiaries owed to Vedanta and its affiliates up to a maximum of US$25
million (the "Vedanta Debt"). The Vedanta Debt is currently payable on demand.
Funds in the amount of US$127 million have been placed in escrow to secure the
payment of the aggregate offer price payable to all Sterlite Gold shareholders
as well as repayment of the Vedanta Debt. Vedanta has also placed in escrow
all of the Sterlite Gold common shares beneficially owned by it.

    About GeoProMining

    GeoProMining is a private diversified resources holding company with a
portfolio of quality exploration and mining projects. The holding pursues an
expansion strategy that also includes acquisition of international gold,
copper, molybdenum and antimony deposits around the world.

    About Sterlite Gold

    Sterlite Gold is a Canadian company, which currently operates in Armenia,
is in the business of acquiring, exploring and developing mineral resource
properties, as well as operating gold mines.

    Forward-Looking Information

    This press release contains certain forward-looking information. This
information relates to future events or future performance and reflects
management's expectations and assumptions regarding the growth, results of
operations, performance and business prospects and opportunities of
GeoProMining. Such forward-looking information reflects management's current
beliefs and is based on information currently available to management of
GeoProMining. In some cases, forward-looking information can be identified by
terminology such as "may", "will", "should", "expect", "plan", "anticipate",
"believe", "estimate", "predict", "potential", "continue" or the negative of
these terms or other similar expressions concerning matters that are not
historical facts. In particular, information regarding the future operating
results and economic performance of GeoProMining is forward-looking
information. Forward-looking information involves significant risks and
uncertainties. A number of factors could cause actual events or results to
differ materially from the events and results discussed in the forward-looking
information including risks related to investments, conditions of capital
markets, economic conditions, dependence on key personnel, interest rates,
regulatory change and availability of future financing. These factors should
not be considered exhaustive. In addition, in evaluating this information,
investors should specifically consider various factors, including risk factors
which may cause actual events or results to differ materially from any
forward-looking statement. In formulating forward-looking information herein,
management has assumed that business and economic conditions affecting
GeoProMining will continue substantially in the ordinary course, including
without limitation with respect to general levels of economic activity,
regulations, taxes, interest rates and that there will be no material changes
in its credit arrangements. Although the forward-looking information is based
on what management of GeoProMining consider to be reasonable assumptions based
on information currently available to it, there can be no assurance that
actual events or results will be consistent with this forward-looking
information, and management's assumptions may prove to be incorrect. This
forward-looking information is made as of the date of this press release, and
GeoProMining does not assume any obligation to update or revise them to
reflect new events or circumstances. Undue reliance should not be placed on
forward looking information.





For further information:

For further information: Oleg Roumyantsev at +7 495 980 6454

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GEOPROMINING LTD.

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