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Continental Precious Highlights Dissident Shortcomings

TORONTO, ONTARIO -- (Marketwire) -- 12/05/12 -- Continental Precious Minerals Inc. (TSX:CZQ) (the "Company" or "Continental") wishes to assure shareholders that it will not be pressured into hasty, irresponsible actions by a dissident shareholder pre-occupied with unpredictable, short-term swings in the company's share price.

Ed Godin, chief executive officer, notes that Continental is one of only a handful in the junior mining exploration sector that has survived the ups and downs of the global commodity cycle for a quarter of a century.

Mr. Godin said: "Our cash reserves now total more than $12 million, giving us a cushion that few other junior exploration companies can match." Continental has advanced its Swedish properties on a budget of just $19.7 million (as of August 31, 2012) with minimal dilution to shareholders.

Continental shareholders are due to elect directors for the coming year at the annual meeting on December 20, 2012. Shareholders are urged not to cast their votes in favour of the dissident's nominees.

"Should the dissident nominees succeed in seizing control of Continental, your investment will be entirely at the mercy of a group with highly questionable motives and credentials," Mr. Godin said.

--  The group's ringleader, Mr. Sharad Mistry, boasts that he was previously
    vice-president for financial services at Pure Energy Visions Corp., a
    supplier of batteries. He has also spent time in the automotive, apparel
    manufacturing, retail, biotechnology research and franchising sectors.
    After Mr. Mistry succeeded in a proxy fight and gained control of
    International Sovereign Energy Corp., shareholders lost wealth. 
--  Another nominee, Mr. Robert Perry, has several decades of experience in
    the Toronto stock exchange's listings department, which is hardly
    relevant to Continental's business. Fresh into retirement, he is a
    member of the audit committee of a public company that until November
    28, 2012 was listed on the Ontario Securities Commission's website as a
    reporting issuer in default. 
--  The remaining two nominees, Ms. Carmen Diges and Dr. Laurence Curtis,
    are a lawyer and a research analyst respectively. Ms. Diges has no
    experience as a director of a public company. Dr. Curtis has
    consistently presided as a director over poorly performing public

Furthermore, none of the dissident nominees owns Continental common shares except Mr. Mistry, who owns or controls a paltry 0.3% stake. Despite such meagre holdings, the dissidents are seeking to take over the entire board.

The company poses three pertinent questions to Continental shareholders:

--  If the dissident nominees had been in control of Continental over the
    past few years, would the company have the healthy treasury it does
--  If the dissident nominees abandon the flagship Viken project in favour
    of "other acquisitions or joint ventures in the resource business",
    could Continental end up as a shell for a reverse take-over, similar to
    the fate of International Sovereign Energy Corp.? 
--  If Mr. Mistry holds only 0.3% of the shares of Continental, does he
    really have a meaningful interest in Continental and why would you allow
    him to control the board? 

Attention Continental Precious shareholders:                                
You can voice your disapproval of the dissidents. If you have any questions 
or require assistance, please contact Kingsdale Shareholder Services Inc. as
  Phone Toll Free: 1-866-879-7650                                           
  Fax Toll Free: 1-866-545-5580                                             
  Outside North America Call Collect: 1-416-867-2272                        

About Continental Precious Minerals Inc:

Continental is a multi-mineral exploration company with multiple interests and exploration licences in Sweden. Since March 2005, our primary goal has been to advance its Swedish assets. We are also evaluating other opportunities as they emerge in current market conditions.

Continental Precious Minerals Inc.
Ed Godin
President & CEO
(416) 805-3036
(416) 848-0790 (FAX)

Kingsdale Communications Inc.
Bernard Simon
(416) 867-2304
(416) 867-2271 (FAX)

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