Pala announces filing and sending of offer and take-over bid

TORONTO, Oct. 1, 2012 /CNW/ - Pala Investments Limited ("Pala") today announced that it has sent to shareholders of Melior Resources Inc. ("Melior") its previously communicated offer to acquire all of the issued and outstanding common shares of Melior not already owned by Pala for $0.11 in cash per share (the "Offer").

The Offer will expire at 11:59 p.m. (Toronto time) on November 5, 2012, unless withdrawn or extended.

The offer price represents a premium of approximately 15.8% over the closing market price of the Melior shares on the TSX Venture Exchange on September 21, 2012 (the last trading day prior to Pala's announcement of its intention to make the Offer) and a premium of approximately 16.4% over the 20-day volume weighted average price of the Melior shares on the TSX Venture Exchange.

While Pala is supportive of Melior's publicly-disclosed strategy to make strategic investments in small to medium-sized mining opportunities, the Offer provides shareholders searching for liquidity with an attractive opportunity, in a highly illiquid stock, to realise immediate value for their holdings.

The Offer and take‐over bid circular and related documents have been filed on SEDAR and will be available at www.sedar.com under Melior's profile. Melior shareholders are strongly advised to read the Offer documents (including the Offer and take-over bid circular and related documents).

Pala has retained Laurel Hill Advisory Group and Equity Financial Trust Company to act as information agent and depositary, respectively, in connection with the Offer. Questions and requests for assistance concerning the Offer may be directed to the information agent and depositary and copies of the Offer and Take‐over Bid Circular and related documents may be obtained, without charge, on request from them. The information agent can be contacted at 1-877-452-7184 (toll free in North America) or at 416-304-0211 or by email at [email protected].  The depositary can be contacted at 1‐866-393-4891 (toll free in North America) or at 416-361-0152 (overseas), or by email at [email protected], and is located at 200 University Avenue, Suite 400, Toronto, Ontario, Canada, M5H 4H1.

About Pala

Pala is a multi-strategy investment company dedicated to investing in, and creating value across the mining sector in both developed and emerging markets. Pala seeks to assist companies in which it has long-term shareholdings by providing strategic advice and innovative financing solutions. For more information, visit www.pala.com.

Forward-Looking Statements

Certain statements in the press release are forward-looking statements and are prospective in nature. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. These statements generally can be identified by the use of forward-looking words such as ''may'', ''should'', ''will'', ''could'', ''intend'', ''estimate'', ''plan'', ''anticipate'', ''expect'', ''believe'' or ''continue'', or the negative thereof or similar variations.  Such forward-looking statements are based on estimates and assumptions made by Pala in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that the Pala believes is appropriate in the circumstances, including the timing, and the terms and benefits of the proposed Offer.  Many factors could cause the actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, general business and economic conditions; the failure to meet certain conditions of the Offer; claims asserted against Pala; and legislative and/or regulatory changes or actions. Such forward looking statements should therefore be construed in light of such factors, and Pala is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

SOURCE: Pala Investments Holdings Limited

Pala Investments
Janet Darling
[phone]