Article: JMG Exploration Inc. Announces Settlement of Defaulted Loan to Newco Group Ltd.

PASADENA, Calif. -- JMG Exploration, Inc., ("JMG" or the "Company") (OTC:JMGEE) announced that it entered into a Settlement Agreement between Newco Group Ltd. ("Newco"), and Iris Computers Ltd. (Iris) in regards to a defaulted $3 million loan to Newco. The Settlement Agreement provides that all rights, claims and demands of all parties are settled in full upon JMG's surrender of 1,427,665 shares of Iris held as collateral for the loan and JMG's receipt of $1,900,000. Payment to JMG is to occur within one week of receiving statutory approvals required by Indian laws or December 1, 2009, whichever is later. JMG will record a gain on settlement of $750,000 in the 4th quarter ...

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