CAFTA HEARING ON PRELIMINARY OBJECTION UNDERWAY
A hearing on the Preliminary Objection filed by the Government of El Salvador (“GOES”) in relation to an action
commenced by Pac Rim Cayman LLC (“PacRim”) in April 2009 under the Dominican Republic-United States-
Central America Free Trade Agreement (“CAFTA”) commenced today Monday May 31, 2010 and is
scheduled to conclude tomorrow Tuesday June 1, 2010. Under CAFTA Article 10.20, the 3-person Arbitral
Tribunal hearing this case is to rule on the Preliminary Objection on an expedited schedule and is expected to
issue a decision by September 2010. The hearing is taking place at the International Center for Settlement of
Investment Disputes (“ICSID”) in Washington, DC.
“It’s very unfortunate we must resort to arbitration to protect our rights,” says Tom Shrake, President and CEO.
“The global economic crisis has reduced U.S.-based foreign investment in El Salvador by almost 60%. The
unemployment rate continues to climb and the people of El Salvador continue to suffer, especially in Cabañas, the
poorest department in El Salvador. Hundreds of direct and indirect exploration jobs have already been lost. We
are doing everything in our power to right this wrong, reinstate the exploration jobs and move forward with the
mine development, which will create hundreds of new jobs. Exploration and development projects conducted, or
contributed to, by our exploration team throughout their careers has led to the creation of thousands of jobs and
well over a billion dollars in foreign investment to six Latin American countries. We want to invest our skills hand
in hand with Salvadorans to help build an economy with responsible mining as we did in Chile in the 1990s”.
Pursuant to Article 10.21.2, ICSID is live video streaming the hearing proceedings, which commence at 9:30 am
Eastern time each day. The proceedings will be transmitted in both English and Spanish, and will be available in
high speed (256 kbps) and low speed (56 kbps) to accommodate different ban