In 2009, a class action was commenced in the Ontario Superior Court of Justice against Bear Lake Gold (TSX.V:BLG) and certain of its current or former officers and directors. By order issued on August 10, 2010 the Court certified the class action and approved the Settlement Agreement reached between the parties to the class action on May 12, 2010.  The Settlement Agreement is a compromise of disputed claims and is not an admission of liability, wrongdoing or fault on the part of any of the Defendants, all of whom have denied, and continue to deny, the allegations against them.

The Settlement Agreement provides that the Defendants will pay $1,305,000 in full and final settlement of the claims of Class Members, including legal fees, disbursements, taxes and administration expenses in return for releases and a dismissal of the class action.  The Company will also implement certain corporate governance enhancements.  Mr. Bernard Boily, the Company’s former Vice President of Exploration, has agreed not to accept a position as an officer or director of an Ontario reporting issuer for a period of 10 years from the date of the Settlement, and personally contributed $5,000 to the Settlement Amount.

The Defendants, Bear Lake Gold’s past or present parents, subsidiaries, affiliates, officers, directors, legal representatives, heirs, predecessors, successors and assigns, and any member of the individual Defendants’ families and any entity in which any of them has or had a legal or de facto controlling interest are not permitted to participate in the Settlement.