February 28, 2012, Vancouver, BC: Teuton Resources Corp. (“Teuton”) (“TUO”-TSX-V) (“TFE”-Frankfurt) (“TEUTF”—OTC BB) is pleased to provide the following update on its litigation with American Creek Resources concerning the Treaty Creek property, located north of Stewart in the Eskay Creek-Sulphurets-Premier region of northwestern British Columbia (the “Golden Triangle”).
Teuton has terminated its relationship with present counsel and will be seeking new counsel in the next week, in all likelihood to be selected from one of Canada’s ten largest law firms. Emphasis in the selection process will be placed on familiarity with litigation of mining-related matters. As a result of the termination, a representative from Teuton will be unable to attend previously scheduled examination for discovery, which must now be postponed until such time as new counsel is in place.
A representative from American Creek, Darren Blaney, was deposed in July of 2011. As part of his deposition, further documentation was requested by Teuton’s counsel. Part of this documentation was delivered in January of 2012. American Creek’s counsel objected to the delivery of other documents that were requested. Resolution of this dispute will await determination by a judge.
SEDI records show that Mr. Blaney had 2,043,088 shares of American Creek at the time of his deposition. A little more than a week after the depositon, Mr. Blaney began selling shares. This continued until he only had 249,088 shares left, representing an 88% decrease in his position.
As part of the litigation, Teuton has been trying to clarify American Creek’s purported expenditures on the Treaty Creek property. Documents with respect to two of the largest items, drilling and helicopter costs, have been sought after. The daily time sheets for the 2007 drilling, which show who worked, what was done, and what materials were used—are no longer available, having been destroyed by both American Creek and the drill company (according to testimony by Mr. Blaney). It took 14 months from the beginning of the litigation for Teuton to obtain the complete helicopter flight records, which show where the helicopter went to, what it did, who was in the machine, and what time was used. An examination of these records show that many flights attributed by American Creek to the account of Treaty Creek were in fact carried out to the benefit of American Creek’s Electrum property, also located in the Stewart area.
It is Teuton management’s belief that this litigation will be long and complicated, and that American Creek’s efforts to have the matter disposed of by summary judgment will fail.
“Dino Cremonese, P.Eng.”
Teuton Resources Corp.
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