Electrum Strategic Holdings LLC (“Electrum”) announced that it was not supporting the share exchange business combination (the “Arrangement”) of Moto Goldmines Limited (“Moto”) (TSX: MGL; AIM: MOE) and Red Back Mining Inc. (“Red Back”) (TSX: RBI) announced by Moto on June 1, 2009. The announced Arrangement contemplates that each common share of Moto (each a “Moto Share”) will be exchanged for 0.45 of a common share of Red Back. The Arrangement is subject to a number of conditions, including receipt of approval of Moto’s shareholders.

“With 70% of a total stated resource of approximately 22.5 million ounces of gold and, by all accounts, significant additional exploration upside, Moto controls one of the largest and most prospective undeveloped precious metals deposits in the world,” said William Natbony, Electrum’s Chief Executive Officer. “With new mining projects coming on line in the Congo, and with the announcement last month that Moto itself passed a significant milestone in the value chain with the successful completion of the transfer of the exploitation permits, Moto's assets are more attractive than ever before. With the scarcity of major gold projects across the globe so readily apparent, it is difficult to justify a transaction in which Moto would be contributing approximately 65% of the total gold resource endowment of the combined company, and Moto’s shareholders would receive a mere 18% of the combined company.”

On April 27, 2009, Electrum acquired ownership of 8,000,000 Moto Shares. As a result, Electrum owns 14,967,300 Moto Shares, representing approximately 13.84% of the issued and outstanding Moto Shares. Moto and Electrum each issued their own press release announcing the issuance of the 8,000,000 Moto Shares to Electrum as part of Moto’s prospectus offering.

Electrum previously announced that the Moto Shares it acquired were acquired by Electrum for investment purposes and that Electrum and/or one or more of its affiliates may, depending on market and other conditions, increase or decrease its beneficial ownership of Moto Shares or other securities of Moto whether in the open market, by privately negotiated agreement or otherwise.

As a result of Moto's announcement of the Arrangement and Electrum’s decision to not support the Arrangement, Electrum and/or one or more of its affiliates may, either alone or with others, consider and/or initiate alternative proposals and/or transactions with a view to enhancing the shareholder value of Moto. Such alternative proposals and/or transactions may include Electrum and/or one or more of its affiliates, either alone or with others, acquiring some or all of the outstanding Moto Shares and may also include Electrum supporting others in an alternative proposal and/or transaction.

Electrum Strategic Holdings LLC is a member of the privately-held Electrum Group of Companies which is involved in precious metals exploration and development around the world. In addition to its investment in Moto, the Electrum Group holds major positions in some of the most significant precious metals development companies in the world including NovaGold Resources Inc. (NYSE-AMEX, TSX: NG) and Gabriel Resources Ltd. (TSX: GBU). In addition, its flagship company, Electrum Ltd., holds one of the world's largest and most diversified exploration portfolios of projects comprising over 100 properties located in 16 countries in the Americas, Africa, Asia and Eastern Europe. Its management company, Electrum USA Ltd., is headquartered in Denver, Colorado. Electrum Strategic Holdings LLC, a wholly owned subsidiary of GRAT Holdings LLC, is located at 1370 Avenue of the Americas, 19th Floor, New York, NY 10019.