Adamus Resources Limited - Community Social Responsibility Update

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

PERTH, Western Australia, Nov. 5 /CNW/ -

VILLAGE RESETTLEMENT

This is the first mining related involuntary resettlement in the Eastern Nzema / Ellembelle districts, and as such both the Community and the company have been breaking new ground in establishing negotiations and agreements. The company has received full support from the local government and community leaders in establishing the mechanisms of negotiation.

It is planned to complete the construction in the second half of 2011 with minimal impact on the community and managed in accordance with EPA permit conditions. Compensation has secured full access to all areas in the 2011 and 2012 mine plan and the company's grade control program remains on schedule. Initial mining has commenced as planned.

The Salman Resettlement involves over 2,000 people, 503 structures and 19 public buildings, all being resettled at a site approximately 1km to the east of planned mining at the Nzema Gold Project's Salman Central pit. Adamus purchased the resettlement site of 250 acres in 2008.

Total work is 24% complete as of end of September 2010.

Negotiations for the resettlement were an integral part of the mine approval and were conducted between the company and the Salman Community over a two-year period, beginning in 2008 and culminating in the signing of the Resettlement Agreement on 11 May 2010.

The resettlement is based on Ghana EPA standards, as well as previous resettlement projects in Ghana. It is a 'like-for-like' resettlement, with additional terms agreed with the Community that go beyond statutory minimum requirements. These include the provision of a police station and medical clinic in the village, bathrooms and verandas to all houses, larger room sizes compared to standard practice and a commitment to provide electrical distribution throughout the village.

Additionally, the construction material used after agreement with the Community, Hydraform, has significant advantages over the traditional sandcrete brick, which will further enhance the aesthetic and practical benefits of the new village.

Following the Resettlement Agreement, a number of other items of concern to the local community have been discussed and resolved, and these form the text of a Memorandum of Understanding (MOU) between the Community, the Company and the Western Regional Government. This MOU, which was signed on 28 October 2010, will allow for the acceleration of building works while initial mining commences on schedule.

Site preparation, earthworks and drainage have been completed whilst the manufacture of hydraform bricks continues and the construction of public buildings is well advanced.

SKILLS & TRAINING

    
    Technical Training
    ------------------
    

50 youths from 10 communities in the Ellembelle and Nzema East Districts graduated on 28 October 2010 from the 3rd technical skills training program at Kikam Technical Training Institute, jointly sponsored by Adamus and the Australian High Commission.

Adamus believes youth education and technical skills development are key bedrocks of socio-economic development helping to build the foundation for alleviation of poverty. It is against this backdrop that Adamus, since 2008, has collaborated with the Australian High Commission to train 141 youth from our mining communities in areas of Carpentry, Welding and Fabrication Mechanical, Plumbing, Masonry and Electrical Installation at the Kikam Technical Training Institute and Axim Community Development Vocational Training Institute

This training has involved 16 communities. Around 60% of the total 141 trained to-date are self employed and 24% are working with various organizations including Adamus and its sub-contractors, while the remaining are either continuing their education (5%) or seeking employment.

Such is the success of this program that Adamus plans to seek accreditation for the program to ensure future graduates get higher recognition in seeking employment and in furthering their education.

Although Adamus is yet to commence production, the company has spent over US$300,000 since 2007 on social responsibility, community development and donations for local events.

Adamus sees youth education and technical skills development as a sustainable investment long after mining in the area has completed. The company is committed to broadening its engagements in developmental projects and capacity building in the local communities and technical skills development will be one of the key areas of funding to build a sustainable legacy for the company and the youth in the mining communities.

    
    Apprenticeship Training
    -----------------------
    

20 youths have undertaken apprenticeships through Adamus' subcontractors during the construction phase of the Nzema Gold project. Training was undertaken in welding and fabrication, steel bending and scaffolding.

Paolo Albertazzi, Project Engineer, CONSAR Limited, one of the subcontracting companies to offer local apprenticeships said about the apprentices, "They are well trained and can competently play the roles in their chosen fields".

    
    Way Forward
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    -   Implement scholarships for Salman and other impacted communities
    -   Design new training programs for local youth
    -   Implementation of agricultural-based community projects
    -   Take steps to employ Nzema locals, and in particular Salman residents
    -   Continue with stakeholder engagement (Executive Stakeholder Meetings,
        Sensitization Programmes, Public Consultations, Community Support and
        Community Development Programmes - education, health, water and
        sanitation)
    

OUR COMMITMENT

The core activities of Adamus' Community Social Responsibility are :

    
    -   Training & Education
        Providing education and training opportunities to local communities
        to enable community members to acquire employable skills with a long-
        term view of reducing poverty levels.
        -  Built 3-unit classroom block with office for Anwia community
        -  Built nursery school for Salman community
        -  Built nursery school (provisional) for Akango community
        -  Donated sports items, stationery and books to various schools
        -  Provided training for 141 youths in engineering and vocational
           skills (catering, home management, computer literacy and soap,
           batik, tie & dye making)

    -   Health
        Providing education and equipment to improve general health in local
        communities. This has included :
        -  Supported malaria control education
        -  Provided mosquito bed nets
        -  Provided education on mine operation safety regulations

    -   Water
        Provide safe drinking water for local communities and ensure mine
        operations in no way harm local waterways or catchment areas.
        -  Provided mechanized borehole for Nkroful SHS
        -  Provided borehole with pump for Duale community
        -  Repaired mechanised borehole for Essiama Nursing School (servicing
           1,000 students)
        -  Repaired boreholes for local communities including Salman, Akango,
           Akropong, Dominase and Aluku

    -   Stakeholder Engagement
        Ensure local communities are aware of Adamus' social responsibility
        programs; that Adamus is part of the community and those local
        communities are involved in decision-making processes. This includes:
        -  Executive Stakeholder Meeting
        -  Community Stakeholder Engagements (Government agencies, Community
           Leaders, Farmers, Media, Local Youth and Concerned Citizens)
        -  Assisting with local community events such as anniversaries,
           funerals and festivals
    

About Adamus

Adamus Resources Limited is an explorer and mine developer, listed on the Australian Securities Exchange (ASX), TSX Venture Exchange (TSX-V) and Frankfurt Stock Exchange Open Market (FSE).

The Company's primary focus is on exploring, realising and expanding the economic potential of the Southern Ashanti Gold Project in Ghana, West Africa. The Project encompasses approximately 665km(2) of tenure in the Ashanti Gold Belt - host to over 100moz of gold and the Project boasts excellent access to port and road infrastructure. Ghana is a stable West African country with a long history and some of the world's largest gold mining operations. Gold production is vital to the national economy. Members of the Adamus Board and management team have proven records in mineral exploration, project development and project financing.

    
    Kind regards
    ADAMUS RESOURCES LIMITED

    (signed)

    Mark Connelly
    Managing Director/CEO
    

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Caution Regarding Forward Looking Information.

Certain statements included in this announcement, including information regarding Adamus' plans with respect to its mineral properties, constitute forward-looking information. Forward-looking information includes, among other things, statements regarding expected operations. Forward-looking information is based upon a number of estimates and assumptions made by the Company in light of its experience, current conditions and expectations of future developments, as well as other factors that the Company believes are appropriate in the circumstances. While these estimates and assumptions are considered reasonable by the Company, they are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of, the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes. Investors are cautioned that forward-looking information is no guarantee of future performance and, accordingly, investors are cautioned not to put undue reliance on forward-looking information due to the inherent uncertainty therein. Forward-looking information is made as at the date of this announcement and the Company disclaims any intent or obligation to update publicly such forward-looking information, whether as a result of new information, future events or results or otherwise.

For further information: please see our website: www.adamusresources.com.au or contact: Mark Connelly - Managing Director/CEO, [phone], email: [email protected]; For media enquiries contact: Brian Thornton - Farrington National, [phone], email: [email protected]