RNS Number:6666U
Gold Mines Of Sardinia PLC
27 January 2004


                           Gold Mines of Sardinia plc
                                    ("GMS")

                               Capital Reduction



Following the approval of the resolution at GMS's Extraordinary General Meeting
on 23 December 2003, the Board is pleased to announce that GMS has received
confirmation from the Registrar of Companies of the registration of the order of
the High Court of Justice, cancelling the Company's share premium account and
reducing the capital of the Company from #30,000,000 to #600,000 (the "Capital
Reduction").

The Capital Reduction fulfills a key condition of the proposed Business
Combination between Full Riches Investments Limited and GMS's subsidiaries to
create a new corporation under the laws of the Yukon territory, Canada, to be
named Medoro Resources Ltd., ("Amalco"). It is anticipated that the remaining
conditions of the agreement will be fulfilled as outlined in the circular to GMS
shareholders dated 28 November 2003 (the "Circular").

As set out in the Circular, the Capital Reduction will enable GMS to distribute
to its shareholders the common shares of Amalco receivable by GMS upon
completion of the amalgamation pursuant to the Business Combination.

For further information please contact:

Martin Groak                                         Tel: 07949 209 301
Director, Gold Mines of Sardinia plc
Louis Castro, Williams de Broe Plc                   Tel: 020 7588 7511




                      This information is provided by RNS
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