Linear Gold and Central Sun Mining have signed a letter agreement whereby Linear Gold will acquire all of the outstanding common shares of Central Sun in exchange for common shares of Linear Gold. The combined company will have:

• Initial production of some 45,000 oz/y of gold increasing to 130,000 oz/y following completion of the Orosi Mill Installation in 2009
• Approximately $20.0 million in cash and cash equivalents
• 726,700 oz of gold in Proven and Probable reserves, 1.114 Moz of gold in Measured and Indicated, and 861,200 oz of gold in Inferred resources.

Wade Dawe, President and Chief Executive Officer of Linear Gold, stated, “We believe this transaction is an attractive opportunity to acquire a portfolio of gold assets which includes the Limon mine, currently producing approximately 45,000 oz/y of gold per year, the Orosi mine, with planned production of approximately 85,000 oz of gold annually following a nine month construction period, and the highly prospective Mestiza-La India property, which represents a potential high grade development opportunity for the future. Together, Linear and Central Sun plan to pursue a growth strategy focused on building an aggressive and very profitable gold producer.”

Stan Bharti, the Chairman of Central Sun, commented, “We believe that the combination of Central Sun and Linear Gold will form the basis for the next intermediate gold producer. The combined company brings together gold production, potential near-term production expansion, financial resources and an experienced management team. The combined company will be well positioned to leverage continued strength in the price of gold in 2009.”

Linear Gold will continue the combined company and says there is significant potential for growth through exploration at Central Sun’s properties in Nicaragua and Linear Gold’s promising Ixhautan gold project in Mexico and Ampliacion Pueblo Viejo, Loma El Mate and Loma Hueca gold properties in the Dominican Republic.

Central Sun operates the Limon mine in Nicaragua and is converting the Orosi mine in Nicaragua to conventional milling to increase annual gold output. It also holds an option to acquire a 100% interest in the Mestiza gold property which is located 70 km by road east of Limon mine.