In August 2009, Siskinds LLP filed a class action against Bear Lake Gold Ltd. ("Bear Lake"). Also named as defendants are certain of Bear Lake's current and former officers and directors. The class action sought damages as a result of Bear Lake's July 21, 2009 and July 24, 2009 announcement that it had become aware of serious material inconsistencies in its exploration data relating to its flagship Larder Lake Property. The Plaintiff asserted common law claims in misrepresentation. In addition, the Plaintiff intended to seek leave to pursue claims under Ontario's investor protection legislation, Part XXIII.1 of the Ontario Securities Act.

The class action seeks damages on behalf of all persons and entities who acquired Bear Lake common shares from July 18, 2006 to the time trading in the stock was halted on July 17, 2009, and who continued to hold some or all of the common stock purchased during that period on July 17, 2009.

In May 2010, the parties reached an agreement to settle the action for $1,305,000. Additionally, Bear Lake has agreed to implement certain corporate governance enhancements and Mr. Bernard Boily, the Company's former VP 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. The settlement is a compromise of disputed claims and the settlement agreement contains no admission of wrongdoing by Bear Lake or any of the other named defendants, all of whom expressly deny any liability or wrongdoing, and continue to do so. You may view a copy of the Settlement Agreement here: [ Settlement Agreement ]

This settlement is contingent on the approval of the Ontario Superior Court of Justice (the "Court"). The Court has approved a notice which provides information on how Class Members can participate in the settlement approval process. You may view a copy of the notice here: [ Notice ]

It is the intention of the Parties to the Settlement Agreement that Class Members' entitlements to compensation will be calculated pursuant to the Plan of Allocation. You may view a copy of the Plan of Allocation here: [Plan of Allocation]. Note, however, that the Plan of Allocation is also subject to Court approval.

For further information concerning this action, please contact Nicole Young at 1 (800) 461-6166 ext. 2380 or email nicole.young@siskinds.com. Updates concerning this action will be posted above.