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EnviroGold Limited Media Release/ASX Announcement 08 December 2010 ENVIROGOLD TO PURCHASE MINORITY INTEREST IN LAS LAGUNAS GOLD PROJECT IN DOMINICAN REPUBLIC Mr Brian Johnson, Executive Chairman of EnviroGold Limited (ASX Code "EVG") advises that its wholly-owned subsidiary, EnviroGold Holdings Pty Ltd, has signed a Sale and Purchase Agreement with Grimston World Inc to purchase the minority participants interests in the Las Lagunas gold project in the Dominican Republic. Mr Johnson said that US$11 million will be paid to Grimston World Inc in three stages.

EnviroGold has attributed US$6.0 million of the purchase price to 75% of the Nett Present Value of Grimston World Incs 6.3% economic interest in the Las Lagunas project (US$8.0million), and US$5.0 million to its 30% interest in the projects Albion process plant on completion of the project (after 6.5 years of operation).

EnviroGold Holdings will pay Grimston World Inc the first instalment of US$3.0 million at settlement on 20 December 2010, with two further payments of US$4.0 million due on 31 December 2011 and 31 December 2012.

Interest at 4% pa will be paid on the deferred payments. EnviroGold expects to meet the first deferred payment from share option conversions in December 2011, and the second from cash flows from the Las Lagunas project. Mr Johnson said that with 100% of the plant owned by EnviroGold, the Company would be in a better position to deal with a number of Canadian and local exploration companies active in the Las Lagunas region, in order to establish a mining or tolling joint venture which could provide feed to the Albion plant and extend the life of the project. The Las Lagunas region contains extensive targets for gold in refractory ores and includes Barricks 23m oz Au Pueblo Viejo property which is currently being developed at a cost of US$3 billion. Mr Johnson said that he believed EnviroGolds process plant would be worth around US$50 million in situ on completion of the project provided the Company was able to negotiate continuation of feed to add 5 to 7 years to the project life, and around US$25 million if it had to be moved to another site. Grimston World Inc will transfer its shares in the project development company to EnviroGold Holdings at settlement.

Mr Johnson said that he was particularly pleased to end the relationship with the minority partner, and the Company would now move to increasing its exposure to the rapidly expanding Dominican gold sector.

To download the full ASX Announcement, please visit: http://esp.gewru.com/download/files/12414/1286137/20101208%20-%20ENVIROGOLD%20TO%20PURCHASE%20MINORITY%20INTEREST%20IN%20LAS%20LAGUN.pdf For further information, please contact: Mr Brian Johnson Executive Chairman Email: Ph: +61 2 4861 1740 Mr James Tyers Director of Operations Email: Ph: +61 2 4861 1740 David Brook Professional Public Relations Email: Ph: +61 8 9388 0944
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