TORONTO, Oct. 17 /CNW/ - Coniagas Resources Limited (the "Company") announced today that the Ontario Securities Commission ("OSC") has completed its continuous disclosure review of the Company and of its financial statements for the periods up to and including June 30, 2008. The Company has indicated restated 2007 financial statement comparative figures included in the interim consolidated June 30, 2008 financial statements. The Management Discussion & Analysis ("MD&A") reported at that date also contains the restated figures related to the December 31, 2007 financial statements. Copies of these documents have been posted to www.sedar.com.

The financial statements were restated to address the prior period errors (See "Changes in Accounting Policies" and "Amendments to Financial Statements and MD&A - Prior Period Errors" below). The Company had not adopted the standards set out below when they became effective as it was determined at the time to be unpractical. These standards have now been implemented as of June 30, 2008 and have been applied retrospectively such that the December 31, 2007 balances included in the interim consolidated financial statements at June 30, 2008 included these restated amounts. As per Handbook Section 1506, Accounting Changes, "when an entity changes an accounting policy upon initial application of a primary source of GAAP that does not include specific transitional provisions applying to that change, or changes an accounting policy voluntarily, it shall apply the change retrospectively." As such, Coniagas has applied the changes in accounting policies retrospectively, as prescribed by Canadian GAAP, with an adjustment to "the opening balance of each affected component of equity for the earliest prior period presented, and the other comparative amounts disclosed for each prior period presented as if the new accounting policy had always been applied."

The MD&A was revised to reflect the changes to the financial statements, and to expand and rectify the overall presentation and disclosure contained therein.

Changes in Accounting Policies

(a) Capital Disclosures and Financial Instruments - Disclosures and
    Presentation

On December 1, 2006, the Canadian Institute of Chartered Accountants (CICA) issued three new accounting standards for adoption relating to fiscal years beginning on or after October 1, 2007: Capital Disclosures (HB s.1535), Financial Instruments - Disclosures (HB s.3862), and Financial Instruments - Presentation (HB s.3863). These new standards became effective for the Company on January 1, 2008.

Capital Disclosures

Handbook Section 1535 specifies the disclosure of (i) an entity's objectives, policies and processes for managing capital; (ii) quantitative data about what the entity regards as capital; (iii) whether the entity has complied with any capital requirements; and (iv) if it has not complied, the consequences of such non-compliance. The Company has included disclosures recommended by the new Handbook Section in Note 12 to the June 30, 2008 interim consolidated financial statements.

Financial Instruments - Disclosure and Presentation

Handbook sections 3862 and 3863 replace HB s.3861, Financial Instruments - Disclosure and Presentation, revising and enhancing its disclosure requirements, and carrying forward unchanged its presentation requirements. These new sections place increased emphasis on disclosures about the nature and extent of risks arising from financial instruments and how the entity manages those risks. The Company has included disclosures recommended by the new Handbook section in Note 11 to the June 30, 2008 interim consolidated financial statements.

(b) Comprehensive Income and Financial Instruments - Recognition and
    Measurement

The following accounting standards, issued by the CICA, became effective for interim and annual financial statements relating to fiscal years beginning on or after October 1, 2006, and relate to the accounting for and disclosure of financial instruments and comprehensive income:

Comprehensive Income

Section 1530 introduces the concept of comprehensive income to Canadian GAAP. Comprehensive income is the change in equity (net assets) of the Company during a reporting period from transactions and other events and circumstances from non-owner sources. It includes all changes to equity during a period except those resulting from investments by owners and distributions to owners. Comprehensive income is comprised of net income for the period and other comprehensive income.

Financial Instruments - Recognition and Measurement

Section 3855 - "Financial Instruments - Recognition and Measurement" prescribes when a financial asset, financial liability, or non-financial derivative should be recognized on the balance sheet as well as its measurement amount.