Davos Resources (AIM: DVRS) - a strong start and a bright future

Davos Resources plc / Index: AIM / Epic: DVRS / Sector: Natural Resources


23 October 2006

Davos Resources plc ('Davos' or 'the Company')

First Day of Dealings on AIM


Overview


• Trading on AIM commenced following fund raising of £715,000

• Objective is to develop the Pine Creek gold, copper and uranium
tenement in Northern Australia and identify and acquire other resource
properties

• Pine Creek proximal to the highest recorded gold production in
the areas mining history

• Early exploration has already identified six prospective
exploration targets

• Resource projects to be considered are not mineral or geographic
specific

• Highly knowledgeable board with many years experience in the
industry provides access to such projects


Davos' chairman David Steinepreis said: 'This is the next step in our intention
to build a successful mining company, which has a portfolio of assets that with
investment can deliver significant shareholder returns. The listing not only
provides us with a strong platform to explore and develop the Pine Creek
Tenement, but will also enable us to seek and fund further investment
opportunities and to raise the profile of the Company generally and within its
sector. We have an active exploration programme in place and budgeted for, as
well as a management team that has the track record and experience to identify
additional exciting projects to acquire.'


Contacts:

David Steinepreis Davos Resources

Tel: 07913 402727 (U.K.) Tel: +61 8 9420 9300 (Aus)

Olly Cairns Corporate Synergy Plc Tel: 020 7448 4417

Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7242 4477


Davos Resources plc, an exploration and resource acquisition company, is pleased
to announce its admission to AIM having raised £715,000 (before expenses)
through the issue of 54,999,992 new Ordinary Shares giving it a market
capitalisation of £2.5 million. The funds will be used to develop the
exploration programme at its Pine Creek gold, copper and uranium project,
identify and acquire additional resource projects, raise the Company's profile
and for working capital.


The 314.2 km(2) Pine Creek Tenement, situated in the Pine Creek area
approximately 230 km south of Darwin in the Northern Territory, Australia, is
proximal to the highest recorded gold production in the mining history of the
Northern Territory of Australia. A two year exploration programme has already
been developed for the project to reach bank feasibility study status pending
results from the exploration programme.


In addition to this exploration programme, the Company also aims to identify and
acquire other resource properties, and to either develop a viable project
independently or bring it into production through a joint venture programme with
an established mining company. Proposed acquisitions may be either quoted or
unquoted companies, in partnerships, joint ventures or shareholdings in mining
projects at the exploration, development or production phase. There are no
geographic or class of commodity restrictions with regard to the investment
criteria.


The Directors are widely experienced in evaluating acquisition and investment
prospects in the mineral and petroleum sectors, quoted and unquoted, both in the
UK and overseas and are able to call on independent expertise in these sectors.


The Pine Creek Tenement


The Pine Creek Tenement is in the southern part of the geological feature known
as the Pine Creek Geosyncline. A regional Shear Zone, the Pine Creek Shear,
passes through the centre of the Tenement and has been a major locus for the
passage of gold-bearing fluids which have passed through this site.


The area surrounding the Tenement has a long history of minerals discoveries and
mining (primarily copper, silver and gold). In May 2006, Davos conducted a
review of historical exploration data on the Tenement with the aim of
identifying good potential exploration targets. In August 2006, using
geophysical data to refine the structural model, six groups of highly potential
exploration targets were defined. Following this positive information that the
Tenement has all the prospective geological, structural and other geophysical
factors potentially to host an Enterprise Deposit style gold deposit, the
Directors believe that further exploration work is justified. They have
therefore devised a detailed exploration programme.


Additionally, the Tenement is within a 20 km radius of the major Union Reef gold
resources discovered in 1873. As at December 1998 total resources were estimated
to be 17.6Mt with a grade of 1.7 g/t gold. In April 2006, a notice of intent
for the reopening of the Union Reef gold plant was submitted by GBS Gold
International Inc (a Toronto Stock Exchange listed company) to the Northern
Territory government of Australia. On 26 September 2006, GBS Gold International
Inc announced that its processing plant was fully commissioned and that it was
moving ahead with the next phase of production activities with the commencement
of mining.


The Directors' current intention is for the Group to undertake an exploration
programme to test the targets identified by its recent work programmes. Work
proposed on the Pine Creek Tenement will include some or all of the following:
detailed regional structural interpretation, an aerial survey, a programme of
photo-geological mapping, geochemical sampling, detailed geological mapping,
infill soil sampling and rock chip sampling over geochemical trends as well as
exploration for vein type uranium deposits hosted within the granitic plutons.
An exploration work programme has been budgeted for at $100,000 in year one and
$150,000 in year two.


Directors and Senior Management


David Christian Steinepreis (Executive Chairman) (Age 49) - David Steinepreis is
a Chartered Accountant and former partner of KMG Hungerfords (now KPMG) where he
specialised in strategic corporate advice and taxation for listed companies. He
entered commerce as a director, adviser and major shareholder of a number of
listed companies in the gold, diamonds, oil and new mining technology sectors.
He is a director of Monitor Holdings Ltd, Toodyay Resources Ltd and RMG Limited,
all of whom are listed on the ASX, Leopard Minerals Plc and North River
Resources plc. He has previously been a director of Ascent Resources plc and
Uranium Resources plc, companies listed on AIM. He is also currently chairman of
Ascent Capital.


Michael John de Villiers (Non-Executive Director) (Age 43) - Michael de Villiers
qualified as a Certified Public Accountant with Ernst & Young in Cape Town. He
is the finance director of Mercator Gold plc, listed on AIM. He gained his
experience as financial manager at mining and chemicals operations in Namibia,
Botswana, Ghana and Bulgaria. He was previously the finance director of Oxus
Gold plc and Navan Mining plc, companies listed on AIM.


Scott Sherwood Spencer (Non-Executive Director) (Age 56) - Scott Spencer studied
languages, history and politics at the University of Western Australia and St
Antony's College, Oxford. He then spent 20 years working for in the Australian
Foreign Service on political and economic issues. He was a director of Hardman
Resources Limited, a petroleum company listed on the ASX and AIM, from 1994 to
2006. He is currently a director of Monitor Holdings Limited and Green Rock
Energy Ltd, companies listed on the ASX.


Pedro Kastellorizos (Consultant Exploration Manager) - Pedro Kastellorizos has
been a practising geologist for over 10 years with exploration experience in the
Northern Territory, Queensland and Western Australia. He was most recently
exploration manager for Batavia Mining Ltd and Tennant Creek Gold Ltd, companies
listed on the ASX. Prior to joining Batavia Mining Ltd, he was Exploration
Manager for Thor Mining plc, a company listed on AIM focused on molybdenum,
tungsten and uranium exploration in the Northern Territory. Prior to this he
gained exploration experience in the Northern Territory with a number of ASX
listed and private exploration companies.



Media:

First article, positive outlook:

http://www.resourceinvestor.com/pebble.asp?relid=24918

2nd:

http://www.minesite.com/storyFull5.php?storySeq=3883