The Board of Endomines has decided to refocus the company's exploration activities to the Pampalo mine site and its immediate surroundings. Drilling at Korvilansuo area and development works at Hosko deposit will currently be put on hold as well as all green field exploration activities. The reason behind these decisions is recent and near term future expected low gold price.

The company has decided to reduce its exploration spending and preserve cash to be better prepared for the low gold price period. Supporting background to this decision is also a high arsenic content in the concentrates produced in the recently completed Hosko pilot plant processing test. Similar results were obtained from the Korvilansuo-area bench scale processing tests.

The company is currently evaluating possibilities and methods to produce commercial gold concentrates from its Hosko and Korvilansuo satellite deposits The company is concurrently reviewing its satellite-deposit mineral resources and mineral reserves estimates by using recent cost level estimates, gold price and all other relevant information. Especially the high grade Hosko deposit estimate needs to be verified before any further action is taken. Test mining activities have indicated that there may be some discrepancies in the grades and a re-evaluation is ongoing.

Until further notice the company intends to continue exploration at its Pampalo mine both underground and on surface.