Murgor Resources proposes share consolidation and shareholder rights plan

    MONTREAL, Oct. 1 /CNW Telbec/ - Murgor Resources Inc. (TSX-V: MUG)
announces that at an annual and special meeting of shareholders to be held on
October 25, 2007, shareholders will consider an amendment to Murgor's Articles
so as to consolidate the issued and outstanding shares on the basis of one
share for every six shares issued and outstanding. There are currently
112,925,443 shares issued and outstanding. The share consolidation would
result in approximately 18,820,907 issued and outstanding common shares.
    Murgor has proposed the consolidation of its shares in order to
facilitate future financings, intended to advance Murgor's Hudvam and Wim
deposits to the production stage. Murgor is currently proposing the completion
of feasibility studies at its Hudvam and Wim deposits by the end of 2008 and
by mid-2009, respectively. Murgor must also finance its continued exploration
and work commitments on its other properties in Manitoba and Saskatchewan. In
this regard, Murgor's Board of Directors is considering a rights offering to
Murgor's shareholders, thereby giving all shareholders an equal opportunity to
participate in Murgor's growth. The rights offering to the shareholders is
expected to commence shortly after the effective date of the share
consolidation. Under the rights offering, Murgor's shareholders on the rights
offering record date would be given the right to subscribe for additional
common shares. It is the intention of Murgor's Board of Directors to set the
exercise price of the rights at the maximum permitted discount under the
policies of the TSX Venture Exchange.
    If shareholders approve the share consolidation, the Board of Directors
will issue a press release, announcing a record date for the consolidation of
the shares, in accordance with the policies of the TSX Venture Exchange. There
will not be a change of corporate name in conjunction with the share
consolidation. Under the policies of the TSX Venture Exchange, it will be
necessary for Murgor to adopt a new stock symbol in connection with the share
consolidation, which will be announced by way of press release.
    Murgor also announces that its Board of Directors has adopted a
shareholder rights plan. The purpose of the Rights Plan is to provide Murgor's
shareholders and the Board of Directors with adequate time to consider and
evaluate any unsolicited take-over bid; provide the Board of Directors with
adequate time to identify, develop and negotiate value-enhancing alternatives;
and encourage the fair treatment of Murgor shareholders in connection with any
take-over bid made for Murgor shares. It will also prevent any person from
acquiring beneficial ownership of, or the right to vote, more than 20% of the
outstanding common shares while the Board of Directors' process is ongoing, or
from entering into arrangements or relationships that have a similar effect.
The Rights Plan will be in effect for three years, subject to approval by
Murgor's shareholders at the annual and special meeting to be held on
October 25, 2007.
    Rights will be issued and attached to all of Murgor's common shares. A
separate rights certificate will not be issued until such time as the rights
become exercisable, referred to as the "separation time". Following an
acquisition of Murgor shares otherwise prohibited by the Rights Plan, each
right held by a person other than the acquiring person and its affiliates,
associates and joint actors would, upon exercise, entitle the holder to
purchase Murgor common shares from Murgor with a total market value equal to
twice the exercise price of the rights for an amount in cash equal to the
exercise price. The Rights Plan provides for permitted bids, which would be
open for a minimum period of 60 days from the date the bid is made.
    In addition to shareholder approval, the share consolidation and
shareholder rights plan are subject to the approval of the TSX Venture

    This news release includes certain "forward-looking statements". All
statements other than statements of historical fact, included in this release,
including, without limitation, statements regarding potential mineralization,
resources and reserves, exploration results, and future plans and objectives
of Murgor, are forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will prove to be
accurate and actual results and future events could differ materially from
those anticipated in such statements. Important factors that could cause
actual results to differ materially from Murgor's expectations are exploration
risks detailed herein and from time to time in the filings made by Murgor with
securities regulators.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this press release.

For further information:

For further information: André C. Tessier, President & CEO, Murgor
Resources Inc., (613) 546-7503, 1-888-891-3330, Fax: (613) 546-7318,,

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Murgor Resources Inc.

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