Mr. Greg Struble reports

MAUDORE RECEIVES NOTICE FROM THEIR SENIOR SECURED CREDITOR REGARDING ENFORCEMENT OF THEIR SECURITY AND THE PROGRESS TOWARD A CONSENSUAL RESTRUCTURING

After close of markets on Wednesday, Oct. 2, Maudore Minerals Ltd. received a letter from Cyrus Capital Partners in its capacity as a manager to FBC Holdings SARL, regarding defaults in the credit agreement covering FBC's $22-million secured term loan to Maudore and the state of negotiations with two major unsecured creditors at each of Maudore and its operating subsidiary Aurbec Mines Inc.

As previously reported on Aug. 25, Promec Mining filed a notice of bankruptcy proceeding against Aurbec. As also previously reported, the company believes the notice of bankruptcy proceeding is an invalid filing, and the company has been vigorously working to have it dismissed. At the same time, the company has been negotiating a consensual restructuring with its senior lender, its four major unsecured creditors and other stakeholders to implement a business plan.

On Sept. 30, in order to preserve cash, Maudore chose to defer the payment of the Sept. 30 interest due to FBC while negotiations continue. After the close of business yesterday, Cyrus put Maudore on notice that, while it is still prepared to proceed with a consensual restructuring which would see the major unsecured creditors join it in supporting Maudore's business plan, it would move to enforce its security if agreements to implement a standstill and consensual restructuring are not signed by its four major unsecured creditors by 9 a.m. EDT on Oct. 7.

In its letter Cyrus stated that it "remain[s] supportive of the board and management of Maudore and Aurbec's efforts to maximize cash flow and reopen the Sleeping Giant mine."

Cyrus's commitment for financial support, which is contingent on Maudore's four major creditors signing standstill agreements, includes new financing to provide liquidity, deferral of future interest payments and other components which Maudore believes would provide the company with 12 months to successfully execute its business plan and generate the cash flows to repay its unsecured creditors.

As previously stated, the company will do everything it can to ensure that all stakeholders are treated fairly in accordance with their legal entitlements, that no creditor receives preferential treatment and affected creditors receive full payment to the extent possible.

We seek Safe Harbor.