HATHOR EXPLORATION LIMITED
Suite 1810 ? 925 West Georgia Street
Vancouver, B.C. Canada V6C 3L2
Telephone: 604 684 6707
July 24, 2008 News Release NR08-20 Symbol: HAT ? TSX.V
Hathor Adopts Shareholder Rights Plan
Hathor Exploration Limited (HAT?TSX.V) announces that effective immediately, its Board of Directors has adopted a Shareholder Rights Plan (the ?Plan?), subject to regulatory acceptance and shareholder approval at Hathor?s annual and special general meeting scheduled to be held on September 17, 2008.
The objective of the Board of Directors in adopting this Plan is to achieve full and fair value for Hathor?s shareholders in the event of an unsolicited take-over bid for Hathor. The Plan is intended to give the Board of Directors and the shareholders of Hathor a reasonable amount of time to fully consider a bid if one is made, and to protect the shareholders from unfair, abusive or coercive take-over strategies. By virtue of the Plan?s implementation, anyone seeking to obtain control of Hathor will be encouraged to negotiate with the Board of Directors prior to attempting a take-over, or to proceed by way of a ?Permitted Bid?. Current Canadian legislation permits a hostile bid to be made in as little as 35 days, giving little time for value-creating strategies to be implemented or competing bids to be made. Under the Plan, a Permitted Bid must be open for acceptance for 90 days during the first year of the Plan and for 60 days during the balance of the term of the Plan.
Under the Plan, Hathor has issued one Right for no consideration in respect of each outstanding common share of Hathor to all holders of record of common shares at 4:00 p.m., Vancouver time, on July 21, 2008. Hereafter, each common share issued by Hathor during the term of the Plan will have one Right attached to it. The Rights will trade together with the common shares of Hathor and will be represented by the certificates representing the common shares of Hathor. The term of the Plan is five years unless the rights are earlier redeemed or exchanged. The Plan will be subject to review after the third year of its term.
The Rights are attached to the common shares and cannot be exercised until ten trading days after a triggering event has taken place. A triggering event is one of the following: (i) an Acquiring Person, as defined in the Plan, acquires 20% or more of the common shares of Hathor; or (ii) an Acquiring Person announces the intention to make a take-over bid that would result in the person owning 20% or more of the outstanding common shares of Hathor. Upon such a triggering event occurring, each Right would separate from the common share and thereafter entitle the holder to purchase common shares at a 50% discount to the market price, up to the amount of the $60 exercise price of the Right.
The Rights will not be separated from the shares if the Acquiring Person makes a Permitted Bid, defined in the Plan to mean a bid made pursuant to a take-over bid circular to all shareholders of Hathor, which has a minimum deposit period of at least 90 or 60 days (as set out above), and pursuant to which not less than 50% of the common shares, other than those held by the Acquiring Person, are deposited and not withdrawn. The Permitted Bid concept is intended to provide protection to Hathor and its shareholders while permitting shareholder democracy to operate by extending the time for deposit to ensure due consideration of the bid and allowing the bid to proceed if a majority of the shareholders tender their shares.
Hathor is not aware of any pending or threatened take-over bid for Hathor.
With capital resources in excess of $25 million, Hathor continues to aggressively advance its portfolio of 11 Athabasca region uranium exploration projects. This area accounts for approximately 25 per cent of the world's annual mine production of uranium. All of this production comes from unconformity-style uranium ore deposits - the highest-grade uranium ore deposits in the world.
For more information on Hathor, please visit Hathor's website: www.hathor.ca or contact Stephen Stanley at 604-684-6707 or Tony Nunziata at 403-560-7040.
Hathor Exploration Limited
Stephen G. Stanley, Director
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
Henry Wright
Director of Corporate Development, HATHOR EXPLORATION LTD.
Suite 1810 ? 925 W Georgia St, Vancouver, BC, Canada, V6C 3L2
phone: 604.684.6707 | fax: 604.684.9277 | mobile: 604.614.4337
email: hwright@hathor.ca | website: http://www.hathor.ca/