Handeni Gold Inc. : Handeni Gold Lawsuit With Ruby Creek

DAR ES SALAAM, TANZANIA -- (Marketwire) -- 03/07/12 --

Dar es Salaam, Tanzania, March 7, 2012 - Handeni Gold Inc. (the
'Company' or
'Handeni Gold') (OTCBB: HNDI). Handeni Gold is hereby responding to a
news
release issued by Ruby Creek Resources, Inc., ('Ruby Creek') on March 1,
2012
with regards to a lawsuit filed by Ruby Creek against Handeni Gold
in the
Supreme Court, State of New York, on February 8, 2012.

In the New York lawsuit, Ruby Creek alleges that Handeni Gold participated
in a
fraudulent transfer of certain mineral property interests in Tanzania that
Ruby
Creek had the right to purchase pursuant to a series of agreements with
Handeni
Gold. Ruby Creek's claims are completely unfounded and entirely without
merit.
Handeni Gold did not at any time breach the agreements or participate
in a
fraudulent transfer as alleged by Ruby Creek.

Ruby Creek is in fact the party that breached the agreements. As a
result, on
February 23, 2012, the Company filed a lawsuit against Ruby Creek in the
Supreme
Court of British Columbia, seeking relief for Ruby Creek's breach of its
payment
obligations under these agreements and seeking an order that Ruby
Creek
immediately remove the U.S. restrictive legend from Ruby Creek shares
issued to
Handeni Gold under the agreements. To date, Ruby Creek is in default
with
respect to over $1.3 million in scheduled payments due to Handeni Gold
under the
agreements. In addition, Ruby Creek has refused to allow Handeni Gold to
remove
the U.S. restrictive legend affixed to the share certificate
representing
4,000,000 Ruby Creek shares issued to Handeni Gold as partial
consideration to
purchase the mineral property interests under the agreements, thereby
wrongfully
preventing and delaying Handeni Gold from reselling the shares.

About Handeni Gold
The Company is an emerging mineral exploration company focused on
exploring and
developing mining opportunities in Tanzania. For more information,
go to
www.handenigold.com.
Safe Harbour Statements
Except for the statements of historical fact contained herein, the
information
presented in this news release constitutes 'forward-looking statements' as
such
term is used in applicable United States and Canadian laws. These
statements
relate to analyses and other information that are based on forecasts of
future
results, estimates of amounts not yet determinable and
assumptions of
management. Any statements that express or involve discussions with
respect to
predictions, expectations, beliefs, plans, projections, objectives,
assumptions
or future events or performance (often, but not always, using words or
phrases
such as 'expects' or 'does not expect', 'is expected', 'anticipates' or
'does
not anticipate', 'plans, 'estimates' or 'intends', or stating that
certain
actions, events or results 'may', 'could', 'would', 'might' or 'will' be
taken,
occur or be achieved) are not statements of historical fact and should be
viewed
as 'forward-looking statements'. Such forward looking statements involve
known
and unknown risks, uncertainties and other factors which may cause the
actual
results, performance or achievements of the Company to be materially
different
from any future results, performance or achievements expressed or
implied by
such forward-looking statements. Such risks and other factors include,
among
others, the actual results of exploration activities, the
availability of
capital to fund programs and the resulting dilution caused by the
raising of
capital through the sale of shares, accidents, labour disputes and other
risks
of the mining industry including, without limitation, those associated
with the
environment, delays in obtaining governmental approvals, permits or
financing or
in the completion of development or construction activities, title
disputes or
claims limitations on insurance coverage. Although the Company has
attempted to
identify important factors that could cause actual actions, events or
results to
differ materially from those described in forward-looking statements,
there may
be other factors that cause actions, events or results not to be as
anticipated,
estimated or intended. There can be no assurance that such statements will
prove
to be accurate as actual results and future events could differ materially
from
those anticipated in such statements. Accordingly, readers should not
place
undue reliance on forward-looking statements contained in this news
release and
in any document referred to in this news release.
Forward looking statements are made based on management's beliefs,
estimates and
opinions on the date the statements are made and the Company
undertakes no
obligation to update forward-looking statements if these beliefs,
estimates and
opinions or other circumstances should change, except as required by
applicable
law. Such forward-looking statements reflect our current views with
respect to
future events and are subject to certain risks, uncertainties and
assumptions,
including, the risks and uncertainties outlined in our most recent
financial
statements and reports and registration statement filed with the United
States
Securities and Exchange Commission (the 'SEC') (available at
www.sec.gov) and
with Canadian securities administrators (available at www.sedar.com). Such
risks
and uncertainties may include, but are not limited to, the risks
and
uncertainties set forth in the Company's filings with the SEC, such
as the
ability to obtain additional financing, the effect of economic and
business
conditions, the ability to attract and retain skilled personnel and
factors
outside the control of the Company. These forward-looking statements are
made as
of the date of this news release, and the Company assumes no
obligation to
update the forward-looking statements or to update the reasons why
actual
results could differ from those projected in the forward-looking
statements,
except as required by applicable law. Although the Company believes
that the
beliefs, plans, expectations and intentions contained in this news
release are
reasonable, there can be no assurance those beliefs, plans,
expectations or
intentions will prove to be accurate. Investors should consider all
of the
information set forth herein and should also refer to the risk factors
disclosed
in the Company's periodic reports filed from time-to-time with the SEC.
This
news release shall not constitute an offer to sell or the solicitation
of an
offer to buy securities of the Company nor shall there be any sale of
these
securities in any jurisdiction in which such offer, solicitation or sale
would
be unlawful prior to registration or qualification under the securities
laws of
any such jurisdiction.

228 Regent Estate, Dar es Salaam, Republic of Tanzania T ?255-222-70-00-
84
www.handenigold.com · Trading Symbol: HDNI

5152912.2

This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.

Source: Handeni Gold Inc. via Thomson Reuters ONE

[HUG#1592235]

For further information please contact:

Handeni Gold Inc.

Sam Sangha

Investor Relations

(604) 642-6165