BARU GOLD Receives Official Government Letter Affirming Production Operation Status with Formal Request FOR Police Assistance
News Release
May 29, 2023 Trading Symbol: “BARU: TSX.V | BARUF: OTCQB”
BARU GOLD RECEIVES OFFICIAL GOVERNMENT LETTER AFFIRMING PRODUCTION OPERATION
STATUS WITH FORMAL REQUEST FOR POLICE ASSISTANCE
Vancouver, BC - Baru Gold Corp (the “Company” or “Baru”) and its subsidiary PT. Tambang Mas
Sangihe (the “Company” or “TMS”) is pleased to announce the receipt of official correspondence
from the Director of Engineering and Environment at the Ministry of Energy and Mineral
Resources of the Republic of Indonesia (“MEMR”). The letter affirms the Company’s legal status
to operate and produce gold on Sangihe Island (“Sangihe”) and states that the Company’s license
(number 163.K/MB.04/DJB/2021) is active and valid. Furthermore, in the letter, MEMR officially
requests that police cooperate with the Company, and stop all illegal mining on Sangihe. The letter
was delivered to the following Government Leaders:
1. Chief of the North Sulawesi Regional Police
2. Director of Certain Crimes, Police Criminal Investigation
3. Director of Special Criminal Investigation of North Sulawesi Regional Police
4. Chief of Sangihe Islands Police
5. Acting Director General of Mineral and Coal
6. Inspector General of the Ministry of Energy and Mineral Resources
7. Secretary of the Directorate General of Mineral and Coal
8. Director of Mineral Business Development
9. Head of the Ministry of Energy and Mineral Resources Office of North Sulawesi Province
10. Head of the Regional Environment Office of North Sulawesi Province
11. Coordinator at the Directorate of Engineering and Environment of Mineral and Coal
12. Coordinator of Mine Inspections for North Sulawesi Province
Most importantly, this official letter satisfies a due diligence prerequisite for a prospective
institutional investor and an administrative process for the police.
The Company recognizes that clarification is required following a recent social media campaign by
illegal miners and their supporters that falsely suggested the Company’s permits were revoked or
its operations impacted. T he Company confirms its permits are valid and remain in good
standing. The Company is legally able to produce gold on Sangihe. The Company’s AMDAL or
Environment Permit and Contract of Work ( “CoW”) have never been revoked and remain valid ,
and t he Supreme Court of Indonesia has affirmed the Company’s AMDAL. Statemen ts to the
contrary are false.
Baru Gold Corporation
9th Floor 1021 West Hastings St
Vancouver, BC V6C 1L6
www.barugold.com
On January 17, 2023, the Company announced the results of a challenge filed in an Administrative
Court and against the MEMR (the “Jakarta Lawsuit”). The presiding judge in the Jakarta Lawsuit
ordered the cancellation of th e Decree of the Minister of MEMR dated January 29, 2021 ,
concerning Approval for Increasing the Stage of Production Operation Activities of the
Company’s CoW. The decision does not affect the Company’s permits or CoW and is only
referring to an administrative step called a Stage of Activity upgrade.
The Company’s CoW with the Republic of Indonesia is a legally binding agreement , therefore, the
conditions specified within are legally binding between the Company and the State. The CoW
cannot be modified without the mutual consent of both the Company and the State. The MEMR is
the State’s sole designated representative and has the final authority in overseeing, administrating,
and authorizing the Company’s actions according to the CoW.
The Company’s CoW outlines the conditions of operations on Sangihe. The operational activities
include five distinct Stages of Activity: General Investigation, Exploration, Feasibility Study,
Construction, and Production Operation. To upgrade to the next Stage of Ac tivity, the CoW lists
specific criteria that the Company must meet. Since signing the CoW in 1997, the requirements for
each Stage of Activity upgrade in the contract have not changed. Once the conditions specified
within the CoW are met, the Stage of Acti vity upgrade is guaranteed by law. The Minister of
MEMR has the sole and ultimate authority authorizing Stage of Activity upgrades.
The Jakarta Lawsuit challenged only the Minister of MEMR’s decree to approve upgrading the
Stage of Activity to Production Operation status. When adjudicating the Stage of Activity upgrade
to Production Operation, the Minister of MEMR needs only consider terms of the requirements for
the issuance of an increase in operations within the CoW. The Small Island Utilization Permit is
not a requirement within the Company’s CoW , and MEMR has never requested the Company
obtain one.
The MEMR has reviewed the Court’s decision. According to MEMR, the Company has fulfilled
all necessary requirements of the CoW for production. Therefore, the MEMR has determined, and
in this official letter reaffirmed, that the Compan y’s current Stage of Activity is Production
Operation status. As the Jakarta Lawsuit had reached the Supreme Court, there cannot be
additional lawsuits on this matter.
Mr. Terry Filbert, CEO of Baru Gold, commented, “We are very pleased to receive the letter from
the MEMR affirming our legal status to operate and produce gold on Sangihe Island . The
Company is the largest single employer on Sangihe and we appreciate the support from police,
government officials, and local residents. Securing the previously announced financing is
progressing well and t he Company is looking forward to entering into production. Not only does
the letter validate the hard work of our team in Indonesia but it also satisfies a prerequisite for the
financing that will fund the Company into production.”
ABOUT SANGIHE GOLD PROJECT
The Sangihe Gold Project ( “Sangihe”) is located on the Indonesian island of Sangihe, off the
northern coast of Sulawesi. Sangihe has an existing National Instrument 43 -101 inferred mineral
resource of 114,700 indicated and 105,000 inferred ounces of gold, as reported in the Company's
“Independent Technical Report on the Mineral Resource Estimates of the Binebase and Bawone
Deposits, Sangihe Project, North Sulawesi, Indonesia ” (May 30, 2017). Readers are cautioned that
mineral resources that are not mineral reserves do not have demonstrated economic viability.
The Company intends to proceed to production without the benefit of first establishing mineral
reserves supported by a feasibility study. The Company cautions readers that the any production
decision made by the Company will not be base d on a NI 43 -101 feasibility study of mineral
reserves that demonstrates economic and technical viability and as such, there may be involved
increased uncertainty and various technological and economic risks.
The Company's 70-percent interest in the Sangihe-mineral-tenement Contract of Work (“CoW”) is
held through PT. Tambang Mas Sangihe ( “TMS”). The remaining 30 -percent interest in TMS is
held by three Indonesian corporations. The term of the Sangihe CoW agreement is 30 years upon
commencement of the production phase of the project.
Baru has met all the requirements of the Indonesian government to operate and produce Gold on
Sangihe and has been granted its environmental permit (AMDAL).
ABOUT BARU GOLD CORP.
Baru Gold Corporation is a dynamic junior gold d eveloper with NI 43 -101 gold resources in
Indonesia, one of the top ten gold producing countries in the world. Based in Indonesia and North
America, Baru’s team boasts extensive experience in starting and operating small -scale gold
assets.
BARU GOLD CORP
Per: “Terry Filbert”
Terry Filbert, Director
President & CEO
For investor contacts more information, please contact:
Kevin Shum
Investor Relations
647-725-3888 ext 702
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
Certain statements in this News Release, which are not historical in nature, constitute “forward looking statements”
within the meaning of that phrase under applicable Canadian securities law. These statements inc lude, but are not
limited to, statements or information concerning future work programs, results and timing of any work programs, the
Company’s performance or events as of the date hereof. These statements reflect management’s current assumptions
and expectations and by their nature are subject to certain underlying assumptions, known and unknown risks and
uncertainties and other factors which may cause actual results, performance or events to be materially different from
those expressed or implied by such forward looking statements. Those risks include the interpretation of drill results;
the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining
results will not be consistent with our expectations; commodity and currency price fluctuation; failure to obtain
adequate financing; regulatory, recovery rates, refinery costs, and other relevant conversion factors, permitting and
licensing risks; general