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DCC.P Devcorp Capital

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Share Name Share Symbol Market Type
Devcorp Capital TSXV:DCC.P TSX Venture Ordinary Share
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  0.00 0.00% 0.00 -

Dagilev Capital and Lundin Mining Close Salave Gold Property Acquisition

14/04/2010 6:52pm

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Dagilev Capital Corp. (TSX VENTURE: DCC.P) ("Dagilev" or the "Company") is pleased to announce that it has closed the acquisition of a 100% interest in the Salave Gold Deposit from Lundin Mining Corp. (TSX: LUN)(OMX: LUMI) and other parties (as previously disclosed in news releases dated February 11 and March 18, 2010). TSX Venture Exchange has approved the Salave acquisition as Dagilev's qualifying transaction.

The company also announces that it will be renamed Astur Gold Corp. subject to shareholder approval at the Annual General Meeting on May 31, 2010.

The Salave property is comprised of five mineral exploitation concessions covering an area of 433 hectares. The Salave property is 100% owned by Exploraciones Mineras del Cantabrico S.A ("EMC") a Spanish company and now a wholly owned subsidiary of Dagilev. The property is subject to royalties due to a third party including a series of staged payments and a 5% net smelter return royalty on gold produced and sold when cumulative gold production exceeds 800,000 ozs. Dagilev may exercise an option to reduce the royalty from 5% to 2.5% by paying the royalty holder $5,000,000.

Dagilev engaged Scott Wilson Roscoe Postle Associates Inc. of Toronto, Ontario to complete an updated NI 43-101 technical report. Brian McEwen, P.Geol. is a qualified person under the definition in NI 43-101. Mr. McEwen completed a site visit in December 2009 and has reviewed the contents of this news release.

In August 2005, the Regional Government of Asturias halted open-pit project development of Salave due to the introduction of certain zoning legislation. Immediately after, legal proceedings were commenced by EMC against the government seeking reversal of the decision or monetary compensation. The legal proceedings are on-going.

Further details of the Company's updated Salave 43-101 will be provided shortly.

Transaction Terms

Dagilev has acquired all of the issued and outstanding securities of EMC in consideration for EUR500,000 and the issuance of 5,296,688 common shares to Lundin, plus EUR600,000 to third parties. Lundin will own 19.52% of the 27,136,689 Dagilev shares outstanding upon the completion of the transaction. In addition, Dagilev is to pay Lundin EUR20,000,000 within 180 days of receipt by EMC of all necessary or desirable permits, licenses and approvals from all appropriate regulatory bodies and governmental authorities to allow EMC to construct and operate an open pit mine on the property.

The agreement also includes certain other terms relating to the current legal proceedings initiated by EMC against the government of Asturias, Spain, in connection with the property.

Dagilev and Lundin have agreed that any judgments or monies awarded to EMC as a result of the litigation will be aggregated and shared 50% by Lundin and 50% by EMC, after a deduction of the upfront payment as well as litigation and court related costs incurred by Dagilev between April 13, 2010 and the time of settlement or final judgment in the lawsuit.

Dagilev has also issued 500,000 common shares to a third party in consideration for that party agreeing to amend an agreement in respect of the Salave property. In addition, the Company has entered into a bridge loan for an aggregate of $850,000.

After closing of the transactions, Dagilev has 27,136,689 shares outstanding with no options or warrants issued.

Haywood Securities Inc. acted as financial adviser to Dagilev.

Concurrently with closing of the acquisition, Mr. John Reynolds and Mr. Paul Conibear were appointed to the Board of Directors of the Company and Mr. David Doherty resigned as a director.

Paul Conibear - Director

Mr. Conibear is a Professional Engineer and has over 25 years of experience in heavy industrial and mining investments in North America, Africa, and South America. He has 18 years experience in project and construction management of a diverse range of minerals projects including base and precious metal, coal and potash projects gained while working with Fluor Daniel Wright and subsequently the Simons Mining Group (AMEC). Mr. Conibear joined the Lundin Group in 1999 and became President of Tenke Mining Corp. until its merger with Lundin Mining Corp. in 2007. He has been an officer of Lundin Mining Corp. since July of 2007 and is currently Senior Vice President, Corporate Development of Lundin Mining Corp.

Honourable John D. Reynolds, P.C.- Director

The Honourable John D. Reynolds career includes substantial experience in venture capital development, resource sector development and elected political office, both federal and provincial.The Hon. John D. Reynolds served as a Member of Parliament of Canada, 1972- 1977 and 1997-2006 and also as leader of Her Majesty's official opposition. The Hon. John D. Reynolds also served as co-chair of the successful national Conservative Party campaign for the January 23, 2006 federal election, in which Stephen Harper was elected the Prime Minister of Canada. The Hon. John D. Reynolds was speaker of the British Columbia legislature as well as Minister of the Environment, in which he served from 1983-1991.

The Hon. John D. Reynolds career in the private sector has included directorships on the boards of numerous public companies, including International Corona Resources, Calibre Mining Corp., Oriel Resources, Rusoro Mining Ltd., and Terrane Metals Corp. The Hon. John D. Reynolds was appointed as a member of the Queen's Privy Council for Canada on February 6, 2006. In March 2006, he was appointed as a Senior Strategic Advisor to Lang Michener law firm in Vancouver.

ON BEHALF OF THE BOARD

Cary Pinkowski, Chief Executive Officer and Director

The TSXV has in no way passed upon the merits of this transaction and has neither approved nor disapproved the contents of this press release.

Contacts: Dagilev Capital Corp. Cary Pinkowski 604-694-1600 cp@cpcapital.ca Dagilev Capital Corp. #300-1055 West Hastings Street, Vancouver, B.C., V6E 2E9

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