BGL Bandera Gold Ltd. (delisted)

On January 4 and 7, 2008, Bandera Gold Limited ("BGL") (TSX VENTURE:BGL) issued
news releases concerning the property dispute that is ongoing with our joint
venture partner, Minera San Jorge, S.A. de C.V. ("MSJ"). We indicated at that
time that our legal counsel had reviewed all of the documentation regarding our
signed 'Option Agreement', considered the circumstances of the situation that
had arisen and concluded that the issues at hand represented a deliberate breach
of contract by MSJ and George S. Barnett.


Since that time, representatives of our legal team in Guadalajara, Caracas and
Calgary have been working diligently to quantify and enforce our position
regarding the legally binding agreement that is in place between BGL and MSJ.


There has been little communication between representatives of BGL and MSJ since
our January announcements. BGL is aware that the 60 tonne per day test
production mill has been operating throughout the dispute and that a substantial
amount of silver/gold dore has been produced. There has not been any
documentation forwarded to BGL by MSJ or its sister companies regarding this
dore production and/or the disposition of same.


On February 26, 2008, our legal counsel in Guadalajara filed a lawsuit, with
'preventive measures' that were applied for and granted on March 7, 2008, by a
Judge in the State Court of Jalisco, Mexico, Commercial Division, Guadalajara,
Mexico, naming: Minera San Jorge, S.A. de C.V.; Campania Minera Cinco Minas,
S.A. de C.V.; George Barnett Salazar, also known as George Salazar Barnett, also
known as Jorge Barnett Salazar; Minera Amajac, S.A. de C.V.; and the Public
Mining Register as defendants.


On March 7, 2008, the State Court, Commercial Division of Guadalajara, Mexico,
issued preventive measures in favor of the Company consisting of: (i) The
encumbrance of assets of the defendants for an amount of CAD $6,000,000; (ii)
the registration of the lawsuit on the files of each of the mining concessions
subject to the Option Agreement before the Public Mining Register in Mexico
City; and (iii) a prohibition for Mr. Barnett to leave the Court's jurisdiction
(the Mexican State of Jalisco) until this case is settled, unless having
appointed an Attorney to act on his behalf while he is away.


On March 28, 2008, Mr. Barnett and the company offices of MSJ and Amajac were
served with the lawsuit. The defendants have nine (9) business days to reply to
the suit in defense of the action or be considered to be in default.


In order to guarantee any damages to the defendants in case the lawsuit is
dismissed, BGL was required by the Court to post a bond of 6,000,000 Mexican
pesos (approximately (CAD $600,000)).


In order for these preventive measures to be put in place and stay applicable,
BGL was required to place a Six Hundred Thousand dollars (CAD $600,000.00)
warranty bond in order to respond to any damages and injury that the defendants
may suffer as a result of the said preventive measures being put in place. In
order for the co-defendants to have the preventive measures noted above removed,
they will have to provide a warranty bond (or cash in lieu of) ranging from CAD
$600,000.00 and CAD $1,200,000.00 (the exact amount will be determined by the
judge in due course).


The management of Bandera Gold Ltd. and its legal team will continue to
vigorously protect our shareholders interest in the Cinco Minas and Gran Cabrera
properties and our rights under the Option Agreement. Additional information
regarding the suit will be released in the near future.


Bandera Gold Ltd. is a Junior Canadian Exploration Company whose corporate
strategy is to build shareholder value by finding and developing overlooked and
undervalued mineral properties in North America and South America. By partnering
with an experienced mining and mineral exploration entity, the Company's core
focus will be the continued exploration and advancement of the Cinco Minas
property in Mexico to production, exploration of the Gran Cabrera property in
Mexico and the exploration of the Belmira property in Colombia.


On behalf of the Board

Kelvin Williams, President and CEO

Information provided herein contains forward-looking statements. The reader is
cautioned that assumptions used in the preparation of such information, which
are considered reasonable by Bandera at the time of preparation, may prove to be
incorrect. Actual results achieved will vary from the information provided and
the variations may be material. There is no representation by Bandera that
actual results achieved will be the same in whole or in part as those indicated
in the forward-looking statements.

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