Wits Basin Updates Status Of The Counterclaim Seeking $650,000,000 Of Damages From London Mining

Wits Basin Precious Minerals Inc. (WITM.pk; the “Company”) updates the status of its answer and counterclaim to London Mining plc’s (AIM Stock Exchange, London, Symbol: LOND) filed action in Hennepin County District Court, Minnesota on December 19, 2011.

Yesterday, there was a scheduling conference held by the State Court of Minnesota. As the case file is updated by the court, those viewings can follow the progress of the case by logging on to:
 

http://pa.courts.state.mn.us/default.aspx
Click the Civil Court Case and then put in the case #:
27--CV-11-24590

As previous announced, London Mining, is seeking the repayment of $1,000,000 USD plus interest and costs of indebtedness. The Company filed its answer asserting that not only is the indebtedness not yet due but that the Company is entitled to a court ordered damage award of at least $650,000,000 USD caused by London Mining’s actions and breaches of fiduciary duty related to its joint venture with London Mining in China Global Mining Resources (CGMR).

The Company intends to vigorously assert its rights and remedies to the fullest extent of the law.

About Wits Basin Precious Minerals Inc.

Wits Basin is a minerals exploration and development company. We own title to the past producing gold mine in Colorado known as the Bates-Hunter Mine. We also own a 50% equity interest in China Global Mining Resources (BVI) which owns an iron ore mine and processing plant in China. We do not claim to have any mineral reserves at the Bates-Hunter Mine. Our common stock trades on the pinksheet market under the symbol "WITM." To find out more about Wits Basin Precious Minerals Inc. visit our website at www.witsbasin.com.

Forward-Looking Statements and Risk Factors

Certain statements included in this press release may constitute forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially. Such statements are valid only as of today, and we disclaim any obligation to update this information. These statements are subject to known and unknown risks and uncertainties that may cause actual future experience and results to differ materially from the statements made. These statements are based on our current beliefs and expectations as to such future outcomes. These risks and uncertainties relate to Wits Basin and its subsidiaries, and include, among others, the ability to obtain or maintain regulatory approvals; the ability to obtain necessary financing; and other risks and uncertainties described in Wits Basin's filings from time to time with the Securities and Exchange Commission. Wits Basin disclaims any obligation to update its forward-looking statements.

In addition, the exploration for and development of mineral deposits involves significant financial risks, which even experience and knowledge may not eliminate, regardless of the amount of careful evaluation applied to a process. While the discovery of a mineral deposit may result in substantial rewards, few properties are ultimately developed into producing mines. Moreover, we cannot make any estimates regarding probable reserves in connection with any of our projects and any estimates relating to possible reserves are subject to significant risks. Therefore, no assurance can be given that any size of reserves or grades of reserves will be realized. If a discovery is made, the mineral deposit discovered, assuming recoverable, may differ from the reserves already discovered and recovered by others in the same region of the planned areas of exploration. Further, the cost of exploration and exploitation can be extensive and there is no assurance that we will have the resources necessary or the financing available to pursue projects we currently hold interests in or to acquire interests in other mineral exploration projects that may become available. The risks we face are numerous and detailed information regarding these risks may be found in filings made by us with the Securities and Exchange Commission, including our most recent annual report.

Copyright Business Wire 2010

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