Republic Gold Limited (ASX:RAU) Luzon Minerals Settlement

Brisbane, May 5, 2010 AEST (ABN Newswire) - Republic Gold Limited (ASX:RAU) are pleased to advise shareholders that the Company has settled its litigation with Black Isle Resources Corp (CVE:BIT), formerly Luzon Minerals ("BIRC").

The basis of the settlement includes the Company receiving 1,500,000 shares at a deemed price of CAN$0.10 per share in BIRC, amounting to 18.75% of BIRC's current issued capital. The Company also now holds 500,000 warrants in BIRC exercisable at CAN$0.15 per warrant within the next seven months, which can only be exercised is the Company will not own more than 1,500,000 shares in BIRC. BIRC has dropped all counterclaims of negligence against the Company and its staff. BIRC will also relinquish a default judgement it received against the owners of the Lipichi property in Bolivia as part of the settlement.

Republic's Managing Director; John Kelly, said: "Whilst the size of the settlement is modest compared to the debt owed to the Company by BIRC, the issue of importance is that Republic is the sole owner of the Amayapampa Gold Project in Bolivia and BIRC has no interest in Amayapampa. Republic was able to negotiate much better terms than BIRC to purchase the Amayapampa Project from the vendor, after BIRC's directors reneged on the contracted merger of the two companies three years ago. Republic now has a wholly-owned Project in Bolivia with a world-class gold resource for a junior company".

For the complete Republic Gold annoucement including Amayapampa Mineral Resource Statement, please refer to the following link:

http://www.abnnewswire.net/media/en/docs/62808-ASX-RAU-335943.pdf

Contact

John Kelly Managing Director Republic Gold Limited Tel: +61-7-4092-2594 Mob: +61-418-577-759