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Infinito will advance arbitration process on Las Cristinas

on 8/25/2008

    CALGARY, Aug. 25 /CNW/ - Infinito Gold Ltd. (IG, TSX Venture Exchange)
("Infinito Gold" or the "Company") is pleased to announce that the
International Center for the Settlement of Investment Disputes ("ICSID") has
issued a Decision on Jurisdiction ("Decision") in the matter of the
arbitration between the Company and the Bolivarian Republic of Venezuela
("Venezuela") dated August 22, 2008. The Decision concludes the process
commenced in July of 2006 when Venezuela raised objections to the Arbitral
Tribunal's jurisdiction to rule on the Las Cristinas case pursuant to the
Agreement Between the Government of Canada and the Government of the Republic
of Venezuela for the Promotion and Protection of Investments.
    Venezuela raised four objections pertaining to the jurisdiction of the
Arbitral Tribunal and the Decision states that three of these objections are
dismissed and one will be joined to the merits of the case. The Company
maintains, among other things, that its rights to mine Las Cristinas were
expropriated in a discriminatory manner and without prompt, adequate and
effective compensation by Venezuela after an investment of approximately
US$185 million for the exploration and development of the properties that led
to a determination of reserves in excess of 12 million ounces of gold and over
1 billion pounds of copper. The Company is requesting restitution of its
contractual rights to mine the property plus damages or, in lieu of
restitution, monetary damages of approximately US$ 1.1 billion representing
costs and lost profits.
    The Arbitral Tribunal has indicated that, after consultation with the
parties involved, it will issue an Order for the further procedure which will
mean a re-commencement of the arbitration merits process that was suspended in
July of 2006 when the jurisdictional issue was raised by Venezuela.
    While the company is confident in the validity of its position, there can
be no assurance that it will be successful in all, or part, of its claims and
any award granted will be shared with other parties according to pre-existing
contractual agreements.

    Caution Regarding Forward-Looking Information and Statements
    Certain statements in this press release address future events and
conditions and, as such, involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements
to be materially different from any future results, performance or
achievements expressed or implied by the statements. These factors include,
among others, the inherent risks involved in the exploration and development
of mineral properties, the uncertainties involved in interpreting drilling
results and other geological data, fluctuating metal prices, the possibility
of project cost overruns or unanticipated costs and expenses, uncertainties
relating to the availability and costs of financing needed in the future, the
possibility that all necessary governmental and regulatory approvals will not
be received, and the availability of a qualified workforce and third party
contractors necessary for the development and operation of a mine. The Company
undertakes no obligation to update these forward-looking information or
statements if circumstances or management's estimates or opinions should
change. The reader is cautioned not to place undue reliance on forward-looking
information or statements.


    John Morgan

    "The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release."

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