Gammon Lake Resources and Mexgold Resources Complete $1.8B Business Combination

Gammon Lake Resources Inc. and Mexgold Resources Inc. completed a business combination on August 9, 2006, whereby Gammon Lake acquired all of the issued and outstanding common shares of Mexgold not previously owned by Gammon Lake in a plan of arrangement valuing Mexgold at $451 million. As a result of this arrangement, Mexgold is now a wholly owned subsidiary of Gammon Lake. This transaction creates an intermediate gold-silver mining company with a fully diluted market capitalization of more than $1.8 billion.

Gammon Lake was advised by Fasken Martineau DuMoulin LLP with a team led by John Turner (mining and securities) and including Greg Ho Yuen, Bozidar Crnatovic and Krisztian Toth (mining and securities); Sam Rickett (advocacy) and Bill Bies and Mitchell Thaw (tax).

The special committee of the board of directors of Mexgold was advised by Cassels Brock & Blackwell LLP with a team led by Mark Bennett (mining and securities) and including Patrick Gleeson (mining and securities); Leigh-Ann McGowan (securities); Chris Norton (tax); Chris Hersh (competition) and Robert Cohen (advocacy).