TORONTO, ONTARIO--(Marketwired - Aug. 19, 2014) - Morumbi Resources Inc. (TSX VENTURE:MOC) ("Morumbi" or the "Company") is pleased to announce that it has arranged to settle indebtedness (the "Settlements") of an aggregate of up to $171,902 of outstanding debt owing to several creditors, both external and internal to the Company.

The Settlements represent payments for fees owing to professional advisors, consulting fees and also the settlement of various other liabilities including directors' fees and loan amounts. Completion of the Settlements will allow the Company to preserve its existing cash balances.

The Company will issue up to 3,438,040 common shares of the Company (the "Shares") at a deemed price of $0.05 per Share, in full satisfaction of debt in the total amount of up to $171,902 owing to certain directors, officers, consultants and arm's length parties. The Shares will be subject to a four-month hold period from the date of issuance. The debt settlement arrangement is subject to the approval of the TSX Venture Exchange.

Up to 2,160,000 Shares will be issued in settlement of up to $108,000 of outstanding debt owing to certain directors, employees and consultants of the Company. The Settlement with such directors, employees and consultants shall constitute a related party transaction pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is exempt from the formal valuation and minority approval requirements of MI 61-101 in reliance on Sections 5.5(b) and Sections 5.7(b), respectively, of MI 61-101.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release may contain forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes statements regarding, among other things, the Settlements. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, regulatory approval processes. Although Morumbi believes that the assumptions used in preparing the forward-looking information in this news release are reasonable, including that all necessary regulatory approvals will be obtained in a timely manner, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Morumbi disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable securities laws.

Contact Information:

Chris Buncic
President & CEO
Tel: 416-366-4200