July 10, 2023 - Vancouver, British Columbia, Canada -- Rusoro Mining Ltd. (TSX-V: RML) (the "Company" or "Rusoro") is pleased to announce that it has achieved a significant appellate victory in proceedings to enforce an arbitration award it obtained against the Republic of Venezuela arising out of Venezuela's expropriation of Rusoro's gold mining assets, which as of today, with interest, totals over US$1.4 billion. The U.S. Court of Appeals for the Third Circuit, which is based in Philadelphia, affirmed that Venezuala's state-owned oil company is the country's alter ego and that its property may be seized in satisfaction of the Republic's judgment debt.
A three-judge panel rejected Venezuela's argument that political turmoil in the country warranted a different outcome than the Third Circuit had reached back in 2019, when it concluded that the Republic controls its state-owned oil company, Petróleos de Venezuela, S.A. ("PDVSA"). The ruling re-affirms Delaware Federal Judge Leonard Stark's ruling on the issue for the second time in five years.
The panel, comprised of Judges Stephanos Bibas, Paul Matey and Arianna Freeman stated: "Even accounting for those differences [regarding political turmoil], the district court correctly concluded that PDVSA remains the alter ego of Venezuela." "...Reviewing PDVSA's other arguments would stretch the limited grant of our appellate jurisdiction well beyond the words written by Congress, we decline the invitation and will affirm the district court's judgment."
Andre Agapov, CEO of the Company, stated: "Rusoro welcomes the Court of Appeals' ruling and remains hopeful that, rather than continue to waste the Republic's scarce resources fighting with its creditors in court, the Republic will voluntarily pay its obligation to the Company and allow the parties to bring this longstanding dispute to its overdue conclusion."
James Berger, Charlene Sun, and R. Craig Martin of DLA Piper represented Rusoro in the proceedings.
ON BEHALF OF THE BOARD
Andre Agapov, President & CEO
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