January 12, 2011

EUROGAS AFFILIATE FILES NOTICE OF INTENT TO ARBITRATE WITH SLOVAK REPUBLIC

Belmont Resources Inc. (TSX.V –“BEA”) reports the following update from EuroGas, Inc.

EuroGas, Inc.(EuroGas) (PINKSHEETS: EUGS) (FRANKFURT: EUG) (XETRA: EUG) (HAMB: EUG) (STUT: EUG) today announced that, with regards to the Gemerska Poloma talc deposit, that EuroGas GmbH, a EuroGas affiliate, has filed a Notice of Intent to Arbitrate with the Slovak Republic (http://eurogasinc.com/files/dokumente/rozmin/notification_lette r_of_december_16th_2010.pdf) and is claiming compensation of EUR 500,000,000 for the alleged unlawful, collusive taking, and denial of rights and equal protection, pursuant to the Austrian-Slovak Bilateral Investment Treaty and applicable European Union laws. (The Slovak Republic is a full member of the European Union, using the euro as its currency.) The amount claimed is based on the multi-million dollar investment made by EuroGas in the Gemerska Poloma Talc Deposit as well as an estimated amount of net value capitalized over years for the mineable proven and probable reserves of the Gemerska Poloma deposit which ranks amongst the largest and purest ore bodies of its kind in the world.

EuroGas GmbH, based in Vienna, Austria, is being represented in this action by Freygner Barristers & Solicitors and Freygner Consulting with offices at Vienna, Brussels, Kiev and Sarajevo. EuroGas GmbH owns a 33% interest in Rozmin s.r.o., the company from which the Gemerska Poloma Talc Deposit was allegedly illegally expropriated in 2005, a fact that was affirmed by the non-appealable decision of the Supreme Court of the Slovak Republic, a decision which EuroGas announced on April 24, 2008. EuroGas GmbH has made numerous attempts over the past few years to initiate discussions to remedy the situation (with the previously elected government in the Slovak Republic) and has never received a response to its communications.

EuroGas has agreements to purchase 90% of Rozmin; the remaining 10% interest in Rozmin is held by a German private investor who is a non-affiliate of EuroGas. EuroGas, Inc. reserves the right to pursue its own separate legal remedies with respect to the unlawful expropriation of the Gemerska Poloma Talc Deposit.

"While our intent remains to get back the Gemerska Poloma deposit which is rightfully ours -- a fact that has been affirmed by the Slovak Republic Supreme Court -- we are obliged to file this Notice of Intent to Arbitrate against the Slovak Republic in order to protect our assets," said Wolfgang Rauball, Chairman and CEO, EuroGas and Managing Director of EuroGas GmbH Vienna.

Mr. Rauball added, "Our company and its shareholders have suffered for five years as a result of a blatant, illegal expropriation of a significant asset and we can no longer wait politely lest this be interpreted as an acceptance of the status quo; we will not rest until we regain the Gemerska Poloma Talc Deposit."

EuroGas Inc. has an agreement to purchase a 57% interest in Rozmin s.r.o. from Belmont Resources Ltd, subject to receipt of a last final purchase price payment in the amount of approximately $ 1,000,000. The remaining interests in Rozmin are held by and registered in the name of EuroGas Austria GmbH, a wholly-owned subsidiary of McCallan Oil & Gas (UK) Ltd., which owns a 33% interest in Rozmin; EuroGas recently announced that it had entered into agreements to acquire up to a 100% interest in McCallan Oil & Gas (UK) Ltd., which would give it effective ownership of a 90% interest in the deposit. The remaining 10% interest is held by a private German investor.

Rozmin s.r.o. is a closely held Slovak mining company which controls the massive Gemerska Poloma talc deposit with an estimated 150 million ton carbonate reserve in Eastern Slovakia. The talc deposit Gemerska Poloma, named after the village where it was discovered in Eastern Slovakia, is one of the largest talc deposits worldwide. The carbonate type deposit and resulting purity of the valuable mineral enhances the efficiency of the beneficiation process and allows a higher purity to be attained in the final project. EuroGas intends to bring the Gemerska Poloma deposit into commercial production.

About Belmont Resources Inc.

Belmont has recently entered into an option to acquire 100% interest in 3,040 ha. (23 contiguous mineral claims), known as the Lumby/Bufo property located approximately 35 km. northeast of the town of Atikokan and adjoining on strike to the north-northeast with the Osisko Mining Corp. (former Brett Resources Inc.) “Hammond Reef” deposit.

Belmont Resources Inc. has previously focused on acquiring and developing uranium properties in developed and emerging uranium districts. Belmont (50/50) with International Montoro Resources Inc. has acquired two significant uranium properties (Crackingstone –982 ha & Orbit Lake –11,109 ha) in the Uranium City District in Northern Saskatchewan. The Company also holds interests (50/50 with Int. Montoro) in one rare earth mineral and one uranium claim block in the Central Mineral Belt in Labrador.

Further information can be obtained from the Company website at www.BelmontResources.com and www.sedar.com, or by phoning 604-683-6648.

ON BEHALF OF THE BOARD OF DIRECTORS

“VOJTECH AGYAGOS”

Vojtech Agyagos,
CEO/President/Director

 

 

The statements used in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Companies forward-looking statements and expectations.

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