DGAP-Media: EuroGas, Inc: EUROGAS INC. FILES US $ .

DGAP-Media: EuroGas AG


EuroGas AG / Schlagwort(e): Finanzen/

EuroGas, Inc: EUROGAS INC.
FILES US $ 1 BILLION DAMAGE CLAIM AGAINST THE
SLOVAK REPUBLIC

26.01.2012 16:16
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EUGS:US
EuroGas Inc.

Press Release

EUROGAS INC. FILES US $ 1 BILLION DAMAGE CLAIM
AGAINST THE SLOVAK REPUBLIC

EuroGas Inc. ('EuroGas'), a US public company, has informed the President
of the Slovak Republic about its Notification of an investment dispute
between EuroGas Inc. and the Slovak Republic which relates to illegal - and
in the opinion of EuroGas - corrupt and collusive actions and practices
against its Slovak mining subsidiary Rozmin s.r.o since 2004 by authorities
of the Slovak Republic. EuroGas believes that the dispute constitutes
serious violations of obligations of the Slovak Republic under the 1991
Treaty between the United States of America and the Czech and Slovak
Federal Republic concerning the Reciprocal Encouragement and Protection of
Investments. In January 2005 Rozmin s.r.o. was deprived by the
Administrative Mining Offices of the Slovak Republic of its valid mining
concession at Gemerska Poloma, one of the largest and purest talc orebodies
in the world, through a series of highly unlawful and - in the opinion of
EuroGas - corrupt and collusive practices.

On December 16, 2010 Vienna, Austria based EuroGas GmbH, a subsidiary of
EuroGas Inc. and a direct owner of 33% of Rozmin s.r.o., has already filed
its own Euro 500 Million damage claim under the Bilateral Investment Treaty
between Austria and the Slovak Republic, resulting from the same unlawful
and illegal actions by the authorities of the Slovak Republic.

In a June 16, 2011 letter to Mr. Wolfgang Rauball, Chairman & CEO of
EuroGas Inc. and Managing Director of EuroGas GmbH, the Deputy Prime
Minister and Minister of Finance of the Slovak Republic, His Excellency Mr.
Ivan Miklos, had asked EuroGas GmbH for a temporary halt of EuroGas GmbH's
intention to go for International Arbitration under its EUR 500 million
claim, as it was his understanding that it remained possible to protect
EuroGas GmbH's rights through Slovak local pending proceedings, involving
both the Slovak Courts and Administrative Mining Offices, as well as
offering to EuroGas GmbH meaningful discussions between the Ministry of
Finance and EuroGas GmbH in order to try to find an amicable solution of
the dispute.

Five days later, on June 21, 2011, the May 18, 2011 Final Judgement of the
Supreme Court of the Slovak Republic in the adversary 'Rozmin s.r.o. vs the
General Mining Office' became final and effective by force of law. After
the Supreme Court had already ruled 3 years before in favor of Rozmin
s.r.o. in its February 27, 2008 Judgment, it has now again ruled in favor
of Rozmin s.r.o. and in addition has also rescinded as unlawful the July 2,
2008 and January 12, 2009 decisions by the Mining Office at Spisska Nova
Ves and the General Mining Office at Banska Stiavnica, thus effectively
revoking and cancelling the mining concession at Gemerska Poloma, which the
Mining Office at Spisska Nova Ves, had unlawfully granted to VSK Mining
s.r.o. on July 2, 2008 under suspicious and dubious circumstances. VSK
Mining s.r.o. is a Slovak mining company which is 51% owned by Schmid
Industrieholding GmbH of Wopfing, Austria.

Despite the written assurances offered to EuroGas GmbH by His Excellency
Mr. Ivan Miklos in his June 16, 2011 letter to Mr. Wolfgang Rauball, and in
light of the May 18, 2011 Judgement of the Supreme Court of the Slovak
Republic becoming final and effective by force of law on June 21, 2011, the
Heads of the Mining Office in Spisska Nova Ves, Mr. Antonín Baffi, and of
the General Mining Office in Banska Stiavnica, Mr. Peter Kukelík, are
continuing to act in contempt of court, by totally ignoring the final
decisions of the Highest Court of the Slovak Republic with the clear and
obvious intent to repeat their previous unlawful decisions to the detriment
of Rozmin s.r.o. and its foreign shareholders for the third time.

EuroGas Inc., a Public Company of the United States of America, has
therefore filed now its own US $ 1 Billion damage claim against the Slovak
Republic and has informed the President, His Excellency Dr. Ivan
Gasparovic, the Prime-Minister, Her Excellency Prof. Dr. Iveta Radicova and
the Deputy Prime Minister and Minister of Finance, His Excellency Mr. Ivan
Miklos, about its intention to initiate the international arbitration
proceeding.

Simultaneously EuroGas Inc. has instructed its solicitors to also bring
forward personal civil lawsuits claiming damage against the Heads of the
Administrative Mining Offices of the Slovak Republic, Peter Kukelcik and
Antonin Baffi, as well as Peter Corej, Chief OpeRating Officer of VSK
Mining s.r.o. a former shareholder of Rozmin s.r.o. (through his Slovak
company Rima Muran s.r.o), all of which - in the opinion of EuroGas - might
have been actively engaged in unlawful and corrupt practices which has
deprived Rozmin s.r.o. and its foreign shareholders of a multi-billion
dollar world-class mining asset.

On behalf of the Board of Directors
Wolfgang Rauball
Chairman & CEO



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