Pala Announces Intention to Purchase up to 5% of Melior Shares on TSXV

TORONTO, Oct. 17, 2012 /CNW/ - Pala Investments Limited announced today that it intends to purchase common shares of Melior Resources Inc. ("Melior Shares") through the facilities of the TSXV, subject to market conditions and applicable law, from time to time commencing on Friday, October 19, 2012, until the expiry of Pala's indirect Offer to acquire all of the outstanding Melior Shares not already held by Pala and its affiliates for a price of $0.11 in cash for each Melior Share.

The aggregate number of Melior Shares acquired in this manner will not exceed 5% of the Melior Shares outstanding on the date of the Offer and Pala will issue and file a press release containing the information prescribed by applicable law immediately after the close of business on the TSXV on each day on which any such Melior Shares have been purchased.

The purchase of up to 5% of Melior Shares on the market will be undertaken with the sole aim of assisting Pala to achieve its stated objective of acquiring 100% of Melior Shares.

Pala's Offer of $0.11 in cash for each Melior Share will expire at 11:59 p.m. (Toronto time) on November 5, 2012, unless withdrawn or extended.

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 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]