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Potential Acquisition of Central Norseman Gold Corporation Limited

10 January 2007

Davos Resources PLC
10 January 2007

10 January 2007



Davos Resources Plc ('Davos' or the 'Company')



Potential Acquisition of Central Norseman Gold Corporation Limited



Davos is pleased to announce that it has entered into a Share Sale Agreement ('
SSA') with Croesus Mining NL (An ASX listed company) ('Croesus') for the
purchase of the Croesus subsidiary company, Central Norseman Gold Corporation
Limited ('CNGC').

CNGC owns and operates Australia's longest operating gold mine in Norseman,
Western Australia. Croesus and CNGC appointed administrators on 23 June 2006
following operational problems at the mine and hedging debts, however,
operations at the Norseman mine have continued during the course of the
Administration and the Administration will cease on or before completion of the
SSA.

The purchase consideration for CNGC will be Aus$66 million plus the assumption
of liabilities totalling Aus$4.81M.  This consideration will be payable in the
form of both cash and convertible notes.

The SSA is conditional upon the creditors of CNGC agreeing to vary the CNGC Deed
of Company Arrangement to facilitate the sale; Foreign Investment Review Board
of Australia ('FIRB') approval; and, as the acquisition will constitute a
reverse transaction under the AIM Rules, the approval of Davos shareholders.

Davos has paid Aus$8.00 million cash deposit and agreed to issue and allot
ordinary shares with a value of Aus$2.00 million as part of the SSA. Subject to
CNGC creditor approval and FIRB approval, this deposit will become
non-refundable.

The Aus$8.00 million cash deposit was funded via a placing of 65,400,000
ordinary shares of Davos for 5 p each to institutional investors.

A further announcement will follow to provide details of this transaction and
the company has requested and been granted a suspension of trading in its
ordinary shares pending publication of a circular to shareholders containing
details of the acquisition.






                      This information is provided by RNS
            The company news service from the London Stock Exchange