Ms. Jennifer Boyle of Takara reports

CLAUDE RESOURCES PURCHASES ST. EUGENE TO THE BENEFIT OF TAKARA SHAREHOLDERS

Takara Resources Inc. is holding six million shares of St. Eugene Mining Corporation Ltd., representing approximately 5 per cent of St. Eugene. On Oct. 25, 2011, St. Eugene announced that Claude Resources Inc. will acquire all of the issued and outstanding shares of St. Eugene in consideration for approximately $19-million. In addition, shareholders of St. Eugene will receive 0.25 of a share of a newly incorporated company (Spinco) that will hold a 100-per-cent interest in the Tartan Lake gold mine project in Flin Flon, Man., and cash as described below.

Upon Claude acquiring St. Eugene, Takara expects to receive 0.0789 of a Claude share for each St. Eugene share held, resulting in an aggregate 473,400 shares of Claude. Using the closing price of Claude on Oct. 25, 2011, the value ascribed to the securities held by Takara equates to $946,800. In addition, Takara will receive 1.5 million shares of Spinco. In addition to transferring its Tartan Lake gold mine project to Spinco, Spinco will receive approximately $800,000 in cash.

The acquisition by Claude, as described above, is expected to close prior to the end of 2011, but notwithstanding that, however, completion is subject to shareholder and regulatory approvals, and accordingly, there is no assurance that the transaction will be completed as contemplated.

For more details, see the news release of St. Eugene dated Oct. 25, 2011.

We seek Safe Harbor.