Gulfside Minerals Ltd. has filed a writ in the Sukhbaatar District Court, seeking to rescind the transfer of shares of ECM LLC, the company holding the Erdenetsogt exploration license to Mangreat Group Ltd., a British Virgin Islands company. The basis for the litigation is Gulfside”s right as a shareholder of ECM, under an Agreement dated June 17, 2007, and later approved by the Supreme Court of Mongolia, holding five percent (5%) of the shares of ECM and by virtue thereof to a right of first refusal to purchase any shares of ECM offered for sale by other shareholders. Monrospromugoli LLC ostensibly transferred the shares of ECM for USD5 million in November 2007, and Gulfside alleges that it had the right under Mongolian law to buy the said shares as a shareholder of ECM.

Gulfside is seeking to have the, ninety five percent (95%) now owned by Mangreat returned to Mongolia and offered to Gulfside. Gulfside has already been awarded 5% of ECM shares under an Agreement signed with MRPU on June 17, 2007 which precedes the date of transfer of the shares to the offshore company in November 2007.