PALA ANNOUNCES SALE OF FORACO INTERNATIONAL SA SHARES

TORONTO, Oct 6 /CNW/ - Pala Investments Holdings Limited ("PIHL") announced today that on September 28, 2010 and October 4, 2010, it sold 4,300 common shares and 10,499,809 common shares of Foraco International SA ("Foraco"), respectively, representing approximately 14.07% of the 74,679,000 issued and outstanding common shares of Foraco, as known by PIHL.  The common shares were sold through the facilities of the Toronto Stock Exchange. 

After giving effect to the dispositions referred to above, PIHL and its principals do not own or control, directly and indirectly, any common shares of Foraco. 

The consideration received for the common shares was CDN$2.40 per common share. PIHL sold the shares based on its current investment objectives. PIHL no longer holds any common shares of Foraco and does not intend to acquire common shares of Foraco in the future.

PIHL's address is 12 Castle Street, St. Helier, Jersey JE2 3RT.

About Pala

Pala Investments Holdings Limited is a US$1.0 billion multi-strategy investment company focused on mining and natural resource companies in both developed and emerging markets. Pala Investments' exclusive investment advisor, Pala Investments AG, has extensive experience within the mining and natural resource sectors. Pala Investments 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.

Certain statements in the press release are forward-looking statements and are prospective in nature, including statements with respect to Pala's future intentions regarding the securities of Foraco. 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 statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. 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.

For further information:

please refer to the Early Warning Report posted on SEDAR or contact Colin Murray at 011 41 41 560 9070