SCOTTSDALE, Ariz., June 13, 2011 /PRNewswire/ -- Sunergy, Inc (the "Company") (OTC: SNEY) is pleased to provide update #2 for  shareholders on its dredging operations on the 140 sq. km. Pampana River in Sierra Leone, West Africa. The information below comes as an update from Dale Bourassa, President and COO Allied Mining and Supply LLC and Chief of Sierra Leone Operations for Sunergy, Inc.

"We are deep into the second month of dredging operations on our Pampana River Project in Sierra Leone. Production has increased daily for the past 3 weeks. Visible gold production is up, from 1.5 grams to 3 grams per ton of feed gravel. We are now recovering more than the estimated 100 lbs./ton of rare earth black sands concentrate from each ton of feed. Management believes that over 80% of the free gold remains in the black sands concentrate. We clean the sluice out at the end of each 10 hour shift. By the end of this week, we will have 40 tons of rare earth black sands concentrate stockpiled. 40 tons is the maximum allowed to fit in the 40 foot shipping container that we own in Freetown.  Management projects that an additional 40 tons of Rare Earth black sand concentrates can be produced by the end of June.

We work closely with the local Chief and his people and currently we employ a total of 50 men and women and rank number two behind African Minerals, the largest iron ore producer in Sierra Leone, in total number of employees in the Tonkolli district. Community relations are strong as we are bringing new prosperity to this community"

Our new processing equipment described in our June 2, 2011 Press Release is being prepared for shipping so the free gold and rare earths can be separated and upgraded through a single simple gravity separation operation. A small crushing circuit to enhance separation will be added to the shipment.

Bryan Miller, President comments: "Management is pleased and excited that dredging operations are really performing better than expected. There is another discreet product coming regularly from the dredging that is different from the REE black sand concentrates that is being tested to determine if there is an added economic benefit to operations. Further details will be available once testing is complete. We are also studying opportunities to expand our rare earth/gold and other technology metals operations in the near term."

Please visit the Sunergy website and review further information such as Company Reports under Projects , Previous Press Releases and SEC filing information under Investor Info.

About Sunergy: The Company is an aggressive junior mining exploration and development Company that is production oriented at the earliest possible profitable opportunity. We control 100% of the 150 SQ. Km. Nyinahin mining concession with a full prospecting license in Ghana, West Africa and the 140.1 sq. km. Pampana River Rare Earth, Gold and Diamond concession in Sierra Leone, West Africa. We are focused on near term production of these properties this season. We are production and acquisition oriented and are considering several additional projects suitable for near term production in West Africa.

Notice Regarding Forward-Looking Statements

This current report contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future, including but not limited to, any mineralization, development or exploration of the Nyinahin  and Pampana Mining Concessions.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration and difficulties associated with obtaining financing on acceptable terms. We are not in control of metals prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our most recent annual report for our last fiscal year, our quarterly reports, and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

Contact: Bryan Miller, President  707.738.4280

Sunergy Inc.


Phone: 480.477.5810 | Fax: 480.477.5811

Investor Relations: Steve Parent  480.399.7222

SOURCE Sunergy, Inc.

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