Mr. Les Kjosness reports
ARMADILLO TO ACQUIRE BRAZIL MINERAL CLAIMS WITH GOLD POTENTIAL
Armadillo Resources Ltd. has signed a letter of intent dated October 18, 2010 with Rusheen Handels AG, a private company based in Zurich (RH), to acquire approximately 50% of the issued Units of Amazonia Capital E Participacoes Ltd. a private Company based in Brazil ("Amazonia") (the "Purchase"). Amazonia is ninety nine percent owned by Raheen Handels AG and one percent by Kym Keeves of Brazil.
Amazonia is the registered holder of approximately 860,000 hectares of processos minerais (exploration concessions) in northern Brazil. The property encompasses 116 concessions in the states of Amazonas, Mato Grosso and Rondonia and was originally staked by John Young for RH. Most of the concessions have been staked over Archaen to Lower Proterozoic greenstone belts which are considered to be prospective for gold. Small-scale garimpeiros (artisanal miners) are active in and around all of the concession areas. Gold production by garimpeiros in northern Mato Grosso from the end of the 1970‟s to 2000 is reported by the National Department of Mineral Production to have totaled 123t (Tobias da Silva, 2008).