NEWS RELEASE— APPEAL DISMISSED
APRIL 27, 2015, Vancouver, BC: Teuton Resources Corp. (“Teuton”, “the Company”) (“TUO”-TSX-V) (“TFE”-Frankfurt) (“TEUTF”—OTCBB) announces the decision of the Court of Appeal in regard to Action No. S-107895 (American Creek Resources Ltd. (“AMK”) v. Teuton Resources Corp. (“the Action”). Teuton’s appeal of the lower court judgment was dismissed. A summary of the appeal decision, taken from the Reasons for Judgment of the Honourable Mr. Justice Donald, follows:
The appellant appeals from an order of specific performance granted to the respondent regarding an option to transfer a mining interest, as well as an order for special costs. The appellant contracted to transfer a 51 per cent interest in a mining property to the respondent upon completion of certain conditions, including the expenditure of at least $5 million by the respondent on “exploration” of the mining property. The respondent spent over $6 million on various “exploration expenditures”. The appellant claimed that less than $5 million of those expenditures were “reasonable”, and refused to complete the contract on the basis that the contract implicitly required all expenditures to be “reasonable”. The trial judge interpreted the contract as not requiring any “reasonableness” standard for the expenditures, and found that the expenditures claimed by the respondent were all valid “exploration expenditures”. The trial judge also ordered special costs directed at the appellant’s conduct in giving false answers in examination for discovery, as well as posting inflammatory statements online in an attempt to discourage litigation. Held: Appeal dismissed. The trial judge applied the correct legal principles pertaining to contractual interpretation. The trial judge’s interpretation of the contract was a finding of mixed fact and law, assessed on a standard of palpable and overriding error. The appellant cannot show any palpable and overriding error in the trial judge’s interpretation of the contract. The judge correctly found reprehensible conduct in ordering special costs, and the discretionary decision to do so should not be overturned.
Teuton is, naturally, disappointed in this decision but respects it. Ownership of the Treaty Creek property will remain at 51% American Creek and 49% Teuton.
A request for special or increased costs by the Respondent pertaining to the appeal was not granted.
“Dino Cremonese, P.Eng.”
President,
Teuton Resources Corp.
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This news release includes certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management’s objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words referring to future events and results. Forward -looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as
described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and we caution against placing undue reliance thereon. Teuton Resources Corp. does have an ongoing obligation to disclose material information, as it becomes available.
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