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Aberdeen Reports Binding Settlement of Claim Against Simmer & Jack for US$9,000,000 and Continued Payment of Net Smelter Royalty


TORONTO, ONTARIO -- (MARKET WIRE) -- 10/11/11 -- ABERDEEN INTERNATIONAL INC. ("Aberdeen", or the "Company") (TSX: AAB) is pleased to announce that through negotiations with Village Main Reef Limited (formerly Simmer & Jack Mines) it has reached a settlement for the outstanding claim of US$10,000,000 loan principal and balance payable on the graduated gold royalty from the fourth quarter of calendar 2008.

Village Main Reef has agreed to pay Aberdeen an amount of US$9,000,000 in cash and will continue to pay Aberdeen in perpetuity the 1% net smelter royalty on the gold produced from the Buffelsfontein mine. The US$9,000,000 will be payable in installments, with US$4,000,000 due immediately. The remaining US$5,000,000 plus interest (at the rate of 10% per annum), is payable in five equal monthly installments, the first of which shall be payable on October 25, 2011. The remaining four installments will be payable on the twenty-fifth day of each succeeding month. Village Main Reef has provided a corporate guarantee in respect of both the installment payments under the settlement and Aberdeen's continuing 1% Net Smelter Royalty.

George Faught CEO stated "we are pleased that the unpaid amount from Simmers has finally been resolved to our satisfaction and we look forward to the successful turnaround of the Buffelsfontein gold mine, on which we hold a 1% gold royalty. The funds received from this settlement come at an opportune time when we are being presented with a number of attractively valued resource projects."

Aberdeen loaned US$10,000,000 to Simmer & Jack Mines, Limited ("Simmers") in December 2005. The loan had a three-year term maturing December 31, 2008, a 2.5% coupon at gold prices above US$400 per ounce and a graduated net smelter royalty ("NSR"), tied to the price of gold. The NSR was payable against gold produced from Simmers' northwest assets and included First Uranium Corporation's Mine Waste Solutions tailings recovery operation.

The loan also had an option that allowed Aberdeen to call for its conversion into equity of Simmers, subject to Simmers shareholders' approval. On October 16, 2008, the Company called for conversion to equity and a shareholder vote was held on February 16, 2009, where Simmers' shareholders voted against the conversion. As a result, it was Aberdeen's position that the US$10,000,000 loan was due as of its maturity date of December 31, 2008, and Aberdeen was entitled to a 1% life of mine NSR on the gold produced on the underlying assets.

However, Simmers took the position that the request for conversion into equity caused the loan facility to terminate, ending the remaining graduated royalty payment and Aberdeen forfeiting repayment on the US$10,000,000 principal and remaining interest payments.

As a result, Aberdeen engaged legal counsel and filed a claim against Simmers to recover the outstanding US$10,000,000 principal and balance payable on the graduated gold royalty from the fourth quarter of calendar 2008.

About Aberdeen International Inc:

Aberdeen is a publicly traded global investment and merchant banking company focused on small cap companies in the resource sector. Aberdeen will seek to acquire significant equity participation in pre-IPO and/or early stage public resource companies with undeveloped or undervalued high-quality resources. Aberdeen will focus on companies that: (i) are in need of managerial, technical and financial resources to realize their full potential; (ii) are undervalued in foreign capital markets; and/or (iii) operate in jurisdictions with moderate local political risk. Aberdeen will seek to provide value-added managerial and board advisory services to companies. The Company's intention will be to optimize the return on its investment over an 18 to 24 month investment time frame.

For additional information, please visit our website at www.aberdeeninternational.ca. Follow us on Facebook and Twitter: @AberdeenAAB.

Cautionary Note

Except for statements of historical fact contained herein, the information in this press release constitutes "forward-looking information" within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as "plans", "proposes", "estimates",

"intends", "expects", "believes", "may", "will" and include without limitation, past success as an indicator of future success; net asset value of the Company; the potential of investee companies and the appreciation of their share price; the future intentions of the Company with regard to its shareholdings; the Company's plan of business operations; and anticipated returns. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal and natural resource prices, competition, financing risks, acquisition risks, risks inherent in the mining industry, and regulatory risks. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.

Aberdeen International Inc.
George Faught
Chief Executive Officer
+1 416-861-5887

Source: Aberdeen International Inc.