PDM Platinum Regs

RNS Number:7657X
Platinum Diversified Mining Inc.
05 June 2007


                                                                     5 June 2007

           Platinum Diversified Mining Inc. ("PDM" or the "Company")

                       Update regarding Letters of Intent

The board of PDM is pleased to announce that it has entered into a non-binding
term sheet with Golden Eagle International Inc. ("Golden Eagle"), a company
quoted on the OTC Bulletin Board in the United States, in respect of the
following transactions (the "Transactions"):

(i)    the acquisition of Golden Eagle's Buen Futuro gold and copper
       project in eastern Bolivia consisting of 2,500 acres located 186 miles 
       north of Santa Cruz, Bolivia;
(ii)   a joint venture on Golden Eagle's Precambrian Properties ("Joint
       Venture"); and
(iii)  an option for the acquisition by the Company of Golden Eagle's Gold Bar 
       Mill located in Eureka, Nevada.

The following are the key terms and conditions of the non-binding term sheet:

  * On completion, PDM will make a US$5 million cash payment and issue to
    Golden Eagle 1 million shares of the Company's ordinary shares, valued at
    US$8 per share, as well as 1 million warrants to purchase ordinary shares at
    US$8 per share with a three-year exercise period;
  * PDM will pay Golden Eagle, from 40 per cent. of its net production of
    minerals from the Buen Futuro A Zone Project (consisting of 2,500 acres), up
    to US$15 million in cash (the "Net Cash Production Royalty") and up to 2
    million ordinary shares, valued at US$8 per share (the "Net Stock Production
    Royalty"). PDM will also issue to Golden Eagle one warrant to purchase its
    ordinary shares at US$8.50 per share, with a three-year exercise period, for
    every one share of its stock that it pays to Golden Eagle out of the Net
    Stock Production Royalty;
  * The Net Cash Production Royalty and Net Stock Production Royalty will be
    paid on a 50/50 basis until each royalty amount has been met.
  * PDM and Golden Eagle will enter into the Joint Venture agreement in
    which PDM will be a 60 per cent. partner and Golden Eagle will be a 40 per
    cent. partner;
  * PDM will contribute the first US$5 million in cash toward the operating
    expenses of the Joint Venture and Golden Eagle will have a free-carried
    interest as to its 40 per cent. contribution toward that initial US$5
    million;
  * PDM's board of directors will nominate, and recommend to shareholders,
    one person chosen by Golden Eagle to serve on PDM's Board of Directors;
  * On completion, PDM will enter into a two-year option to purchase Golden
    Eagle's 3,500-ton-per-day CIP Gold Bar Mill located southwest of Eureka,
    Nevada, under the following terms:

     (i)  PDM will pay Golden Eagle US$0.5 million at closing as a non-refundable 
          option fee;
     (ii) PDM will have a first right of refusal to match by 102% any unsolicited 
          offer for the purchase of the Gold Bar Mill that Golden Eagle
          receives during the option period that exceeds Golden Eagle's 
          demonstrated book value, estimated today at US$3.94 million, with the 
          application of the option fee to the purchase price;
     (iii)At the end of the two-year option period, if no suitable unsolicited 
          offer has been received by Golden Eagle, then PDM will have the
          right to purchase the Gold Bar Mill for Golden Eagle's demonstrated 
          book value, again with the application of the option fee to the 
          purchase price;

Shareholders should be aware that completion of the Transactions is subject to
the approval of the shareholders of both PDM and Golden Eagle, as well as the
completion of comprehensive due diligence by both parties, negotiation and
execution of definitive agreements and satisfaction of the conditions set out in
the non-binding term sheet.

The Company also provides an update further to the announcement by the Company
on 14 March 2007 that it had entered into two letters of intent, relating to:

(i)  the acquisition all of the assets of Moen Builders, M & W Milling and Roy 
     and Marlene Moen in the Virginia City District of Madison County, Montana 
     (the "Virginia City Acquisition"); and
(ii) the acquisition of all interests held by a private Santiago family for two 
     copper properties in northern Chile (the "Chilean Acquisition").

As stated in the announcement of 14 March 2007, the Company commissioned an
independent evaluation of the gold potential in the Virginia City District in
order to assess the potential of the Virginia City Acquisition. This evaluation
has now been completed, and the Company announces that the results of the due
diligence exercise has indicated lower resource estimates than previously
expected. As a result of this analysis, the Company has terminated the letter of
intent in respect of the Moen Acquisition.

In respect of the Chilean Acquisition, the Company announces that one of the
third party purchase contracts referred to in the announcement of 14 March 2007
have been exercised. Accordingly, the Company is not likely to gain full control
of that property but instead will acquire the underlying passive ownership
interests, amounting to a net smelter royalty of two per cent. Further details
of this acquisition, and the fair market value of the combined transactions,
will be disclosed to shareholders in due course.

If approved by shareholders, the acquisitions will require the production of a
new AIM admission document by the Company, as required by the AIM Rules.

Enquiries:

Platinum Diversified Mining Inc.
Bobby Cooper, Chief Executive Officer                +001-520-544-2206
Tom Myatt, Chief Financial Officer                   +001-520-204-0159

Strand Partners Limited
Simon Raggett                                        +44 (0) 20 7409 3494
Warren Pearce                                        +44 (0) 20 7409 3494




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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