| SHARES OF GARRISON SUBSIDIARY TRANSFERRED ON STRENGTH OF STOLEN COMPANY STAMP |
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Source: Garrison International Ltd. Date: 25 May, 2011 Garrison International has announced that on January 21, the company stamp for Garrison Asia LLC, its wholly owned subsidiary, was unauthorizedly taken from the Ulaanbaatar office of Garrison Asia and on March 31, it came to the knowledge of senior officers of the company that on February 6, this stamp had been used to transfer the ownership of the shares of Garrison Asia LLC away from the company. In Mongolia as well as in some other parts of Asia, the company stamp is equivalent to a signature. The stamp was therefore was used to improperly confirm that the company had approved the transfer of the shares. Notwithstanding the use of the stamp, in order to change the ownership of Garrison Asia LLC, a notarized signature from the signing authorities of this company would have been required. It is not clear at this time how the notarized signatures were obtained by the two men who took the stamp from Garrison's office. As all of the company's active operations take place under the subsidiary Garrison Asia LLC, until this matter is resolved the company has no active operations. The matter was immediately reported to the Mongolian Police who conducted an investigation and have recommended judicial action against certain people they have identified for the crime. Discussions are now under way between the accused and the company to reach an agreement to transfer the shares back to it. Although this is a very serious situation, Garrison hopes to resolve the matter as quickly as possible. The company's Board of Directors remains unchanged and the company's transfer agent remains in place. As a result of the unauthorized transfer of the shares, Garrison Asia LLC no longer has assets sufficient to satisfy the Continued Listing Requirements of the TSX Venture Exchange and has been placed on 90 days’ notice to evidence its ability to satisfy requirements. Garrison is a junior mineral exploration company focused on acquiring and developing advanced stage gold properties in Mongolia. |