News & Events

PASAKA Festival Highlights KMPs Solidarity with Mansakas and Kagans
November 11, 2016

Supreme Court Decision on NADECOR Board Row
May 27, 2016

KMP Brings Free Medical Service Anew
March 14, 2016

Nadecor, TVI seen getting Mines and Geosciences Bureau (MGB) approval
November 25, 2015

The ‘King-king Project’ and Radyo Pantukan:
October 14, 2015

Community Livelihood Initiative Program (CLIP) Conference
October 09, 2015

Nory Lamera “Joy is Strength”
September 30, 2015

Brenlyn Bano: GSP Troop Leader- ‘Serving the People, Serving God’
September 21, 2015

The Adamant Forest Guardian: Roger Pascual Magcantara
August 25, 2015

KCGP Celebrates ‘Nutrition Month’
July 25, 2015

250 IP Students, 5 Schools Benefit from KCGP’s School Supply Distribution and Feeding Program
July 03, 2015

Six KCGP Scholars Garner Cum Laude Honors
April 24, 2015

KCGP and LGU-Pantukan: Continual Partners in Health Delivery
April 20, 2015

King-king Project's SDMP approved by MGB.
February 05, 2015

KCGP conducts medical clinic for IPs
January 28, 2015

Public consultation on environmental impact of KCGP in Pantukan held
July 16, 2014

ComVal's Bayanihan sa Karunungan a success
June 19, 2014

Comval GSP bags national award
June 09, 2014

Comval mining firm supports Brigada Eskwela
May 27, 2014

MGB recognizes CA grant of injunction to Nadecor
May 15, 2014

MGB approves 2 King-king copper-gold projects in Davao
May 15, 2014

Mining company continues to pour in millions for CSR projects in Pantukan
April 17, 2014

Mining company continues to pour in millions for CSR projects in Pantukan
April 08, 2014

Firm to rehabilitate river in mining
March 10, 2014

Mining firm details plan of operation in Comval
February 24, 2014

Mining firm details plan of its operation in Pantukan
February 23, 2014

Mining firm vows livelihood aid for small-scale miners
February 21, 2014

Kingking company confident on permit
February 15, 2014

St Augustine renews talks with EMB
February 15, 2014

Mining firm resumes DENR approval process
February 15, 2014

Canada's St. Augustine revives talks with DENR for Kingking copper-gold project permit
February 15, 2014

Community assistance continue to pour in for Pantukan villages
January 30, 2014

Tribal council receives timely Yuletide gifts
January 07, 2014

Tribal groups get livelihood assistance
January 02, 2014

Pantukan villages now have access to fresh, potable water
December 06, 2013

Mining firms join hands to aid Yolanda victims
November 26, 2013

Saint Augustine eyes formal talks with small-scale miners of Pantukan
November 25, 2013

State-of-the-art tailings facility eyed for King-King mine project
October 30, 2013

King-king to hire 1,700 miners
October 30, 2013

1,000 small miners eyed for employment
October 29, 2013

Pictured above, Andrew J. Russell, President and CEO of St. Augustine Gold and Copper, Ltd. hands over the Benguet Settlement Documents to Conrado T. Calalang, President of the Nationwide Development Corporation (Nadecor). Looking on in the photo is Ambassador Roberto R. Romulo, Chairman of Nadecor.

St. Augustine and Nadecor Achieve Milestone with Transfer of Benguet Settlement Documents

Manila, September 4, 2013 – St. Augustine Gold and Copper Limited (TSX: SAU) ("St. Augustine" or the "Company") and Nationwide Development Corporation ("Nadecor") jointly announced that they have reached a major milestone with the handover by St. Augustine to Nadecor of the Benguet Settlement Documents, which finalized the settlement with Benguet Mining Corporation ("Benguet") for sale of its operating rights in the King-king Copper-Gold Project in Pantukan, Compostela Valley Province in the Philippines.

With the settlement completed and turned over by St. Augustine to Nadecor, this gives the joint venture clear title to the King-king Project. The clear title facilitates Nadecor's ability to assign the King-king Project MPSA to the joint venture mining company, and finalizes St. Augustine's equity as the joint venture partner. It also provides a corporate structure within which the project can operate as it moves forward in development.

"We are very pleased to have reached this watershed event in the project and our partnership," said Andrew J. Russell, President of St. Augustine. "With this turnover, we begin the joint venture phase of development and cooperation between Nadecor and St. Augustine, which will directly benefit thousands of Filipinos and be a big boost to the Philippine economy."

For his part, Nadecor President Conrado T. Calalang praised St. Augustine's role in the settlement and the future of the project. "St. Augustine has been lock-step with us in the development of the project and we are pleased, not just with the technical and financial benefits they bring, but more importantly their commitment to integrity and transparency in their dealings with Nadecor and the community, which spells success for the project."

St. Augustine reached the full and final settlement with Benguet on August 30, 2011 for the King-king MPSA (Mineral Production Sharing Agreement) with an amended Heads of Terms Agreement that allowed all future payments to be settled with a single, final payment of $10,250,000. Prior to this, St. Augustine had already given a downpayment of $8,000,000, for a total settlement package of $18,250,000.

Under the original Heads of Terms Agreement signed in July 2010, between Benguet and St. Augustine, through its subsidiary, St. Augustine Mining Ltd. (SAML), Benguet agreed to a settlement with Nadecor on outstanding issues on the King-king Project, including the following:

  • Assign and transfer its interest in the Sagittarius Alpha Realty Corp. claims surrounding the King-king Project to Nadecor;
  • Assign and transfer its interest in the Pantukan Mineral Corp. (PMC) shares and operating rights in the PMC Claims surrounding the King-king Project to Nadecor;
  • Terminate and complete the release of all of its rights, titles, interests and claims in the Operating Agreement with Nadecor;
  • Assign or transfer all of its rights, titles, interests and claims in the King-king MPSA to Nadecor;
  • All of Benguet's affiliates shall release, assign or transfer any other rights, titles, interests or claims they have in respect of the King-king Project; and
  • Complete turnover of all books, records, project information and project samples.

Turnover of the settlement documents to Nadecor was delayed until the issues created by dissident minority shareholder Jose Ricafort were recently resolved by the Philippine Court of Appeals and the Supreme Court, and the duly-elected Nadecor board led by Mr. Calalang was clearly recognized and its authority confirmed.

Mr. Calalang noted that the Court of Appeals decision dated 18 February, 2013 is legally binding and immediately effective, and removes any doubt as to who is authorized to represent NADECOR as its Board of Directors, and therefore the authority of the newly elected Board and the Board immediately preceding it is clear. The ruling stated:
"The Annual Stockholders' Meeting of NADECOR held on August 15, 2011 is hereby declared valid and the Board of Directors and Officers elected thereat are declared lawfully elected. Any and all acts of the Board of Directors elected during the August 15, 2011 NADECOR Annual Stockholders' Meeting are declared valid. …. Likewise, the Writ of Preliminary Injunction dated June 13, 2012 is made permanent (covering orders prohibiting the RICAFORT group from scheduling and holding stockholders' meetings, the ratification of rescission of agreements with St. Augustine Gold & Copper and the election of a new board of directors)."

The challenge of dissident shareholder Jose Ricafort was thrown out by the Court of Appeals, and the administrative complaint filed against the Court of Appeals justices who rendered the same decision, was dismissed by the Supreme Court by a vote of 15-0 on February 19, 2013. We refer you to the official NADECOR website, nadecor.com.ph, which features links to the full texts of the above referenced decisions by the Philippine's highest Courts.

St. Augustine is listed on the main board of the Toronto Stock Exchange and is run by industry leaders who have a proven record of discovering, exploring and developing valuable mining assets around the world. One of the largest shareholders in St. Augustine is Queensberry Mining and Development Corporation ("Queensberry"), the resource investment arm of the family of former Philippine Senator Manny Villar. Following its investment of $11 million in May 2013, Queensberry now holds 18% of St. Augustine and has the option to increase its holding up to 32%.

King-king is one of the largest undeveloped copper-gold deposits in the world and the second largest mining project in the Philippines. The NI 43-101 compliant updated mineral resource reported in a press release August 15, 2011 contains Measured mineral resources of 120.3 million tonnes at 0.315% total copper, 0.112 soluble copper and 0.462 grams per tonne (g/t) gold, and Indicated mineral resources of 841.9 million tonnes at 0.245% total copper, 0.054% soluble copper, and 0.316 grams per tonne (g/t) gold. The Inferred mineral resources are an additional 188.8 million tonnes at 0.215% total copper, 0.048% soluble copper, and 0.265 g/t gold. The Measured and Indicated mineral resource consists of 5.4 billion pounds of contained copper and 10.3 million troy ounces of contained gold. (The original resource Technical Report for King-king was published in October 2010.)

NATIONAL INSTRUMENT 43-101 COMPLIANCE

Mr. James J. Moore, P.E., St. Augustine Gold and Copper Limited, a qualified person under National Instrument 43-101 ("NI 43-101"), has reviewed and approved the scientific and technical information contained in this news release.

A NI 43-101 compliant technical report entitled "King-king Copper-Gold Project Mindanao, Philippines" dated October 12, 2010, and prepared by Michael G. Hester, FAusIMM of Independent Mining Consultants, Inc., Donald F. Earnest, P.G., of Resource Evaluation, Inc. and John G. Aronson of AATA International, Inc. has been filed by the Company on www.sedar.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This announcement includes certain "forward-looking statements" within the meaning of Canadian securities legislation. All statements, other than statements of historical fact included herein are forward-looking statements. Forward-looking statements involve various risks and uncertainties and are based on certain factors and assumptions. 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 the Company's expectations include uncertainties related to fluctuations in gold, copper and other commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainties relating to the completion of a bankable feasibility study; uncertainty of estimates of capital and operating costs, recovery rates production estimates and estimated economic return; the need for cooperation of the Company's joint venture partner and government agencies in the development of the Company's mineral projects; the need to obtain additional financing to develop the Company's mineral projects; the possibility of delay in development programs or in construction projects and uncertainty of meeting anticipated program milestones for the Company's mineral projects; and other risks and uncertainties disclosed under the heading "Risk Factors" in the Annual Information Form dated March 22, 2013, and filed with Canadian securities regulatory authorities on the SEDAR website at www.sedar.com

For Further Information Please Contact:

St. Augustine Gold and Copper Ltd.
Kristi Harvie
Manager Investor and Corporate Affairs
T: 509-343-3193
E: kharvie@sagcmining.com

TMX Equicom
Marina Proskurovsky
Account Manager
T: 416-815-0700 ext. 288
E: mproskurovsky@tmxequicom.com

Nationwide Development Corporation
Atty. Leocadio S. Nitorreda
Chief Operating Officer / General Counsel
T: +63-917-521-4178
E: lnitorreda@kingkingproject.com



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St. Augustine Announces Appointment to NADECOR's Board of Directors and Affirmation of Relationship

Spokane, WA, August 21, 2013 - St. Augustine Gold and Copper Limited (TSX: SAU) ("St. Augustine" or the "Company") announced today that subsequent to shareholder approval at Nationwide Development Corp.'s ("NADECOR") annual general meeting, held on August 19, 2013 (the "AGM"), Tom Henderson, Chief Operating Officer, and Kee Ming Chi, General Counsel, of St. Augustine, have been appointed to NADECOR's board of directors. NADECOR is St. Augustine's joint venture partner at its King-king copper-gold project in the Philippines. The appointment follows St. Augustine's acquisition, in June 2013, of a 25% interest in NADECOR. For full details, refer to St. Augustine's press release dated June 28, 2013.

During the AGM, which the Company attended as a shareholder in NADECOR, NADECOR President Conrado T. Calalang in his President's Report stated t hat NADECOR's relationship with St. Augustine is "strong and continues to deliver clear benefits for the project." Mr. Calalang further noted that there have been recent misleading press reports, including some which have mentioned rescission by NADECOR of agreements between the partners, particularly the Memorandum of Understanding signed in April 2010.This affirmation of the relationship between NADECOR and the Company is in line with the Company's previous press releases, particularly that of June 29, 2012 and August 14, 2013. The Company also welcomes recent local media reporting on the AGM which has clarified the confusion previously caused by dissident shareholder Jose Ricafort and the legal basis upon which the current board of NADECOR, led by Mr. Calalang as President and Ambassador Roberto R. Romulo as Chairman, derives its authority.

"The appointment of St. Augustine representatives to NADECOR's Board signifies our ongoing commitment to working with our partner, and the development of the King-king Project," St. Augustine's CEO Andrew J. Russell stated. "It will further align our efforts to accelerate project development and allow us to focus on maximizing shareholder value for both companies and other King-king stakeholders."

NADECOR Chairman , Ambassador Romulo, said at the AGM that he was "delighted that NADECOR has been able to attract significant foreign direct investment into the Philippine mining sector, and pleased that we and our partner St. Augustine are making steady progress in the development of this major project, which will generate thousands of new jobs in Compostela Valley."

For more information regarding NADECOR, please visit the official NADECOR website: nadecor.com.ph

ABOUT THE KING-KING PROJECT

King-king is one of the largest undeveloped copper-gold deposits in the world. As released in the October 2010 Technical Report and the updated resource report released August 15, 2011, Measured mineral resources are 120.3 million tonnes at 0.315% total copper, 0.112 soluble copper and 0.816 grams per tonne (g/t) gold, Indicated mineral resources are 841.9 million tonnes at 0. 245% total copper, 0.054% soluble copper, and 0.3 16 grams per tonne (g/t) gold. Inferred mineral resources are an additional 188.8 million tonnes at 0.215% total copper, 0.048% soluble copper, and 0.265 g/t gold.The Measured and Indicated mineral resource consists of 5.4 billion pounds of contained copper and 10.3 million troy ounces of contained gold

The King-king deposit is a copper-gold porphyry deposit located in the southeast of the Philippine Island of Mindanao, 35km east of Davao City and 11 km from the coast. The project is listed as one of the top priority projects by the Philippine Mines and Geosciences Bureau. The project has a low strip ratio and is in an advanced stage with 95,651 meters of drilling comprised of 291 core and reverse circulation ("RC") holes, including 6,052 meters of new drilling composed of 14 core holes (and 1 RC) in 2011. King-king has entered the feasibility stage of development (social, environmental and engineering phases).

NATIONAL INSTRUMENT 43-101 COMPLIANCE

Mr. James J. Moore, P.E., St. Augustine Gold and Copper Limited, a qualified person under National Instrument 43-101 ("NI 43-101"), has reviewed and approved the scientific and technical information contained in this news release.

A NI 43-101 compliant technical report entitled "King-king Copper-Gold Project Mindanao, Philippines" dated October 12, 2010, and prepared by Michael G. Hester, FAus IMM of Independent Mining Consultants, Inc., Donald F. Earnest, P.G., of Resource Evaluation, Inc. and John G. Aronson of AATA International, Inc. has been filed by the Company on www.sedar.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This announcement includes certain "forward-looking statements" within the meaning of Canadian securities legislation. All statements, other than statements of historical fact included herein are forward-looking statements. Forward-looking statements involve various risks and uncertainties and are based on certain factors and assumptions. 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 the Company's expectations include uncertainties related to fluctuations in gold, copper and other commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainties relating to the completion of a bankable feasibility study; uncertainty of estimates of capital and operating costs, recovery rates production estimates and estimated economic return; the need for cooperation of the Company's joint venture partner and government agencies in the development of the Company's mineral projects; the need to obtain additional financing to develop the Company's mineral projects; the possibility of delay in development programs or in construction projects and uncertainty of meeting anticipated program milestones for the Company's mineral projects; and other risks and uncertainties disclosed under the heading "Risk Factors" in the Annual Information Form dated March 22, 2013, and filed with Canadian securities regulatory authorities on the SEDAR website at www.sedar.com

For Further Information Please Contact:

St. Augustine Gold and Copper Ltd.
Kristi Harvie
Manager Investor and Corporate Affairs
T: 509-343-3193
E: kharvie@sagcmining.com

TMX Equicom
Marina Proskurovsky
Account Manager
T: 416-815-0700 ext. 288
E: mproskurovsky@tmxequicom.com



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St. Augustine and NADECOR Announce Positive Results from King-king Preliminary Feasibility Study

Pre-tax NPV(8%) of US$2.0 Billion and pre-tax IRRof 24.8%

Manila, Philippines, September 19, 2013 – St. Augustine Gold and Copper Limited (TSX:SAU)("St. Augustine" or the "Company") and its joint venture partner Nationwide Development Corp. ("NADECOR") are pleased to announce the results of the Preliminary Feasibility Study ("PFS") on the King-king Copper-Gold Project located in Pantukan, Compostela Valley, Philippines. The results of the PFS show that the planned operation has favorable economic potential, generating an estimated pre-tax net present value ("NPV") of $2.0 billion and an estimated pre-tax internal rate of return ("IRR") of 24.8%.

"The results of this advanced Preliminary Feasibility Study confirm that King-king is an attractive project with robust economics that will bring significant value to our shareholders, our partner and the Philippines," stated Andrew J. Russell, St. Augustine's CEO. "The strong results of the PFS pave the way for St. Augustine and our joint venture partner NADECOR to continue the development of King-king, including the remaining technical work and the advancement of project financing."

"We are pleased that the millions of dollars and years of intensive technical work that St. Augustine has invested in the PFS have paid off and confirmed that this flagship mining project has the potential to generate great value and thousands of jobs for the Philippines." added Conrado T. Calalang, NADECOR's President.

The Declaration of Mine Project Feasibility ("DMPF") was submitted to the Philippine Government in May 2012. The final feasibility study will incorporate any required amendments to the DMPF once comments are received from the Government's final review of the document.

Key Project Indicators

  • Unleveraged pre-tax net present value ("NPV") of $2.0 billion and an estimated pre-tax internal rate of return ("IRR") of 24.8%, using an 8% discount rate, $1,250/oz gold price and $3.00/lb copper price.
  • The ore delivery and processing rate will be a designed throughput of 100,000 tonnes per day ("tpd") split between 40,000 tpd to an on-off heap leach and 60,000 tpd to a flotation mill with agitated tails leach. The mining rate will be approximately 178,000 tonnes per day for the 22 year mine plan. Production from the heap leach process is expected to start one year prior to commencing mill operations.
  • Robust project economics are driven in large part by aninitial five year higher grade operationwith a low strip ratio and tidewater proximity. Average annual production during the first five years of full production (both heap leach and mill in operation) is 270 million pounds of copper (122,487 mt), 360,143 ounces gold (11,202 kg) and 568,958 ounces silver(17,697 kg) with an average gold equivalent total cost of $454 per ounce.
  • Life of mine production of 3.16 billion pounds of copper (1.43 million tonnes), 5.43 million ounces of gold (168,950 kg) and 11.65 million ounces of silver (362,356 kg).
  • Life of mine average annual production of 138 million pounds of copper (62,374 mt), 236,169 ounces gold (7,346 kg) and 506,504 ounces of silver (15,755 kg) with an average gold equivalent total cost of $621 per ounce.
  • An estimated initial capital cost of $2.04 billion including the mine, the mill, on-off leach pad, power plant, port facility and $240 million in contingency costs.
  • The study assumes large scale contract mining will be used during the course of the 22 year mine plan, which reduced project initial capital and increased mine operating cash cost. After tax economic analysis assumes a six year income tax holiday.

The PFS was preparedby M3 Engineering & Technology Corporation of Tucson, Arizona ("M3"). The resource, reserve, and mine plan was developed by Independent Mining Consultants ("IMC") of Tucson, Arizona. AMEC provided metallurgical studies, geotechnical and tailing facility design. The Company will file the full NI 43-101 technical report on SEDAR and the Company's website within 45 days. All dollar figures in this news release are in 2012 USD.

Reserve Base

The table below presents the mineral reserve for the King-king Project based on the mine and plant production schedules developed for the study. The mineral reserve amounts to 617.9 million tonnes at 0.300% total copper and 0.395 g/t gold.

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Mining Schedule

The PFS assumes a base case ore production rate of 100,000 tpd considering 40 ktpd to an on-off heap leach and 60 ktpd to mill. IMC prepared a 22 year mine plan followed by 3 years of processing stockpiled ore. Heap leach ore declines in year 6 and is discontinued by year 13. The mine schedule excludes inferred mineral resources, which are considered to be waste in the mine reserve analysis. The mine schedule has six development phases and is optimized for metals production at the plant while maintaining low waste to ore ratio in the early years. The availability of high quantities of copper oxide material in the early years allows for early development for copper heap leach processing, which starts approximately 1 year before the mill starts. A mill ore stockpile near the crusher will be utilized to allow 3 to 4 years of additional mill ore processing in the later years when mine activity is completed. The table below provides a summary of the plant production, and illustrates the higher metal grades and lower waste /ore ratio achieved early in the mine life:

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*Four years of mill production. Mill plant starts one year after heap leach.

Production Rates, Capital Costs, Operating Costs, Metal Prices and Financial Valuation

Project production, capital and operating costs, metal prices, financials and sensitivities are shown in the table below. In the table below, Base Case refers to the case represented in the Key Project Indicators described above.

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*Mine operating costs reflect higher cost contract mining.
**Assumes an income tax holiday for the first six years of the project

Opportunities

Opportunities to improve project economics are being evaluated to be included for the feasibility study. These include the following:

  • Continued evaluation of electric power supply options, including discussions with independent power providers about long-term power supply costs.
  • Completion of geotechnical work. This may allow more favourable geometry for the tailing storage facility and reduce the volume of the compacted tailing in the outer shell.
  • Increased metal recoveries with additional treatment to the cleaner flotation scavenger tails, where most of the losses occur.
  • Substitution of secondary and tertiary crushing or secondary crushing and high pressure grinding rolls for the SAG/pebble crusher circuit may provide significant capital and operating cost savings. This change would reduce comminution electrical power requirementswith a consequent reduction in size and capital cost of the power plant.
  • Drilling is planned to define more heap leach ore and perhaps more high grade mill ore to add to the early part of the mine schedule.
  • There is potential for expansion of the mill in the future to process mill ore at an increased rate due to potentially adding more mill ore to the resource or due to higher metal prices.

NATIONAL INSTRUMENT 43-101 COMPLIANCE

The following Qualified Persons under National Instrument 43-101 ("NI 43-101") have reviewed and approved the scientific, technical and economic information contained in this news release: Joshua Snider, P.E. of M3 Engineering and Technology, Michael G. Hester, FAusIMM of Independent Mining Consultants, Inc.

A NI 43-101 compliant technical report entitled "King-king Copper-Gold Project Mindanao, Philippines" dated October 12, 2010, and prepared by Michael G. Hester, FAusIMM of Independent Mining Consultants, Inc., Donald F. Earnest, P.G. of Resource Evaluation, Inc. and John G. Aronson of AATA International, Inc. has been previously filed by the Company on www.sedar.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This announcement includes certain "forward-looking statements" within the meaning of Canadian securities legislation. All statements, other than statements of historical fact included herein are forward-looking statements. Forward-looking statements involve various risks and uncertainties and are based on certain factors and assumptions. 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 the Company's expectations include uncertainties related to fluctuations in gold, copper and other commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainties relating to the completion of a bankable feasibility study; uncertainty of estimates of capital and operating costs, recovery rates production estimates and estimated economic return; the need for cooperation of the Company's joint venture partner and government agencies in the development of the Company's mineral projects; the need to obtain additional financing to develop the Company's mineral projects; the possibility of delay in development programs or in construction projects and uncertainty of meeting anticipated program milestones for the Company's mineral projects; and other risks and uncertainties disclosed under the heading "Risk Factors" in the Annual Information Form dated March 22, 2013, and filed with Canadian securities regulatory authorities on the SEDAR website at www.sedar.com.

For Further Investor Information Please Contact:

St. Augustine Gold and Copper Ltd.
Kristi Harvie
Manager Investor and Corporate Affairs
T: +1-509-343-3193
E: kharvie@sagcmining.com

TMX Equicom
Marina Proskurovsky
Account Manager
T: +1-416-815-0700 ext. 288
E: mproskurovsky@tmxequicom.com

For Further Press Information Please Contact:

King-king Copper-Gold Project
MJ Maranion
Public Relations Coordinator
T: +63-908-886-8611
E: mjmaranion@sagcmining.com

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Nadecor and St. Augustine Strengthen Partnership by Restructuring King-king Project Joint Venture

Pictured above are Conrado T. Calalang, President of the Nationwide Development Corporation (Nadecor), Ambassador Roberto R. Romulo, Chairman of Nadecor, Manuel A. Paolo Villar, President of Queensberry Mining and Development Corp. and Tom Henderson, COO of St. Augustine Gold and Copper, Ltd. as they sign the Restructuring agreement.

Manila, Philippines, October 14, 2013 – Nationwide Development Corporation ("Nadecor") announced today that they have signed an agreement with their partner, St. Augustine Gold and Copper Ltd. ("St. Augustine") to restructure (the "Restructuring") their interests in the King-king Project (the "Project"). Once approved, the Restructuring would result in St. Augustine holding a 100% interest in the joint venture milling company ("Milling Co") as well as assuming full responsibility for organizing the financing for the Project. The structure of the joint venture mining company ("Mining Co") would remain the same as was agreed originally between the parties, with Nadecor owning 60% and St. Augustine owning 40% of Mining Co, in accordance with the nationality requirements under Philippine law. The relationship between Mining Co and Milling Co would remain as originally planned, with Mining Co selling ore to Milling Co pursuant to an ore sales agreement. Milling Co would process the ore and would subsequently sell it to interested buyers. The Restructuring would also result in Nadecor shareholders owning 39.96% of St. Augustine.

Nadecor and St. Augustine's boards have both voted in favor of the Restructuring. St. Augustine's strategic Philippine partner, Queensberry Mining and Development Corp. ("Queensberry"), has also signed the Restructuring documents and expressed its full support for the Restructuring. Queensberry owns 18% of SAU.

"Simplifying the structure of the joint venture is beneficial for a number of reasons," said Andrew J. Russell, CEO of St. Augustine. "Firstly, it fully aligns the interests of Nadecor, St Augustine and their respective shareholders in the Project. Secondly, from a strategic perspective, we believe the new structure increases the attractiveness of the Project to potential strategic partners supportive of bringing King-king into production as soon as possible."

Conrado T. Calalang, President of Nadecor remarked, "This is a very important milestone for our partnership and is definitely a positive for both St. Augustine and Nadecor shareholders."

Key Terms of Restructuring:

Key terms of the Restructuring include:

  • St. Augustine would hold 100% of Milling Co, which would be responsible for the milling / processing of all ore produced from the Project. An ore sales agreement would be executed between Mining Co and Milling Co to implement this arrangement;
  • Nadecor would own 60% and St. Augustine would own 40% of Mining Co, which would hold the mining concessions required for the Project;
  • St. Augustine would make available, on a pro-rata basis to Nadecor shareholders, 324,568,751 shares of St. Augustine at a deemed price of $0.10 per share. This would represent 39.96% equity in St. Augustine on a fully diluted post Restructuring basis; and
  • St. Augustine would be responsible for organizing funding for 100% of the Project.

The closing of the Restructuring is subject to certain approvals and other conditions, including approval from the Toronto Stock Exchange. Certain aspects of the proposed Restructuring will be subject to corporate approvals by both companies. St. Augustine shareholders will be entitled to vote on the proposed transaction during the annual general meeting of shareholders currently planned to be held on December 16, 2013. A management information circular and other mandatory meeting materials will be mailed to all shareholders of record in advance of the meeting in accordance with applicable securities law.

Considering the significant Filipino shareholding of St. Augustine resulting from the Restructuring as well as the desire to attract Asian investors, St. Augustine has agreed in the Restructuring documents to pursue a secondary listing on the Philippines Stock Exchange (PSE) by way of introduction. It is anticipated that the cross listing would be completed in the second half of 2014.

The King-king Copper-Gold Project is located in Compostela Valley in the Philippines, and is expected to recover 3.16B lbs. of copper and 5.43M oz. of gold over its 22 year mine life. According to the Preliminary Feasibility Study ("PFS") that was announced on September 18, 2013, the project has a pre-tax NPV of $2.0 billion with an IRR of 24.8%. The mineral reserve amounts to 617.9 million tonnes at 0.300% total copper and 0.395 g/t gold.

The table below presents the mineral reserve for the King-king Project based on the mine and plant production schedules developed for the PFS.

NATIONAL INSTRUMENT 43-101 COMPLIANCE

Mr. James J. Moore, P.E., Vice President Technical, St. Augustine Gold and Copper Limited, a qualified person under National Instrument 43-101 ("NI 43-101") has reviewed and approved the scientific and technical information contained in this news release.

A NI 43-101 compliant technical report entitled "King-king Copper-Gold Project Mindanao, Philippines" dated October 12, 2010, and prepared by Michael G. Hester, FAusIMM of Independent Mining Consultants, Inc., Donald F. Earnest, P.G. of Resource Evaluation, Inc. and John G. Aronson of AATA International, Inc. has been previously filed by St. Augustine on www.sedar.com.

For Further Press Information Please Contact:

King-king Copper-Gold Project
MJ Maranion
Public Relations Officer
T: +63-908-886-8611
E: mjmaranion@sagcmining.com

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