JMG Exploration, Inc. (“JMG” or the “Company”) (OTC:JMGE) previously announced that Newco Group Ltd., a company organized under the laws of the British Virgin Islands (“Newco”), has failed to repay a $3 million loan and accrued interest and fees that were due July 10, 2008 and that on July 22, 2008 JMG issued a formal notice of default.
Pursuant to the notice of default, JMG gave Newco 15 days to either cure the default or consummate a mutually satisfactory alternative settlement arrangement. Newco has not cured the default or consummated an alternative settlement arrangement by the deadline imposed by JMG. Accordingly, JMG has commenced the process of transferring into the name of JMG the shares of Iris Computers Ltd. that were held as collateral under the note. Once the shares of Iris are transferred into the name of JMG, JMG will have effective majority control of Iris because of the 39% equity interest in Iris represented by such Iris shares and JMG’s irrevocable proxy from ESAPI representing an additional 14.5% equity interest in Iris. However, JMG’s rights under the ESAPI proxy expire on December 31, 2008.
About JMG: JMG Exploration, Inc., which was incorporated under the laws of the State of Nevada on July 16, 2004, explores for oil and natural gas in the United States and Canada.
This press release contains forward-looking statements. The words “proposed,”“anticipated” and scheduled” and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. The following factor, among others, could cause actual results to differ from those described in the forward-looking statements in this document: the results of JMG’s review of the impact of the corrected calculation of depreciation, depletion and amortization and other factors described in JMG’s filings with the Securities and Exchange Commission (“SEC”), which are available at the SEC’s Web site (http://www.sec.gov). JMG is not under any obligation, and expressly disclaims any obligation, to update, alter or otherwise revise any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future events or otherwise.
Contacts:
Joe Skeehan, President and CEO
626-585-9555
or
Justin
Yorke, Director
626-310-0482
