GFI Gold Fields Ltd

CUPERTINO, Calif., Jan. 9 /PRNewswire-FirstCall/ -- Scion Capital, LLC announced today that it has commenced an application with Ontario Superior Court requesting a ruling that Gold Fields Limited (NYSE:GFI) has violated Ontario securities laws in its recent purchases of 5,186,000 shares of Bolivar Gold Corp. (TSX: BGC) (TSX: BGC.TO). The application seeks an order prohibiting Gold Fields from voting these shares at the January 12 meeting of Bolivar securityholders regarding the proposed acquisition of Bolivar by Gold Fields at $3.00 per share. Scion Capital believes that, as a result of voting agreements between Gold Fields and Bolivar's management entered into as of November 21, 2005, Gold Fields has controlled and, pursuant to Ontario law, been deemed to own more than 20% of Bolivar's shares since that date. Therefore, any subsequent purchases by Gold Fields should have been made in accordance with the take- over bid rules that regulate how large shareholders may enhance their control of a company. Scion Capital is opposed to Gold Fields' proposed acquisition of Bolivar which Scion Capital's analysis has determined to be significantly undervalued and not in the best interests of Bolivar securityholders. "We have been looking forward to a fair vote on Gold Fields' offer," said Michael Burry, Scion Capital's President. "However, we are deeply concerned that Gold Fields has been improperly buying votes in the market to achieve its goal of pushing through the proposed plan of arrangement." "Had Gold Fields sought to acquire Bolivar by a take-over bid, it would have had to pay market value for Bolivar's shares, taking into consideration the recent gold rally and clarification of Bolivar's status in Venezuela, including the confirmation on Friday of Bolivar's good standing with the Venezuelan government," Dr. Burry said. "Instead, Gold Fields has structured the proposed transaction to effectively cap Bolivar's share price at $3.00, giving Gold Fields the ability to buy additional shares in the market at prices that do not reflect these positive developments." By filing its application, Scion has brought the fundamental unfairness of these purchases and the violation of applicable securities laws by Gold Fields to the attention of the court. Scion's position is that at the minimum Gold Fields should be barred from voting at the meeting any shares it acquired in violation of the securities laws. About Scion Capital Based in Cupertino, California, Scion Capital, LLC is an investment advisory firm founded in 2000, with current assets under management in excess US$750 million. Scion Capital seeks to make long-term investments in companies it identifies as having value that has not yet been recognized by the market. It employs a value oriented investment strategy across many public and private industries, markets and investment opportunities. Scion Capital is Bolivar's largest shareholder with holdings of 21,676,400 shares representing approximately 19.14% of Bolivar's outstanding common shares. Scion Capital's Dissident Circular is available at http://www.sedar.com/ and at http://www.scioncapital.com/. DATASOURCE: Scion Capital CONTACT: investors, Steven A. Druskin, Chief Legal Officer of Scion Capital, LLC, +1-408-441-8400; or Mackenzie Partners Inc., 1-800-322-2885 (toll-free), or +1-212-929-5500 (collect); or media, John Lute of Lute & Company, +1-416-929-5883 Web site: http://www.scioncapital.com/

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