BasicGov Announces Sale of Assets & Name Change

BasicGov Systems, Inc. (TSX VENTURE:BSG) ("BasicGov" or the "Company") announces
that, pursuant to the terms of a Business Assets Purchase and Sale Agreement
(the "Sale Agreement") dated August 16, 2010 among the Company, 0887901 B.C.
Ltd. ("Purchaser") and Pender Growth Fund (VCC) Inc. ("Pender"), it has sold all
of its assets, other than cash, to the Purchaser for consideration of
approximately $900,000, subject to adjustments for changes in specific working
capital balances between July 1, 2010 and September 29, 2010 (the "Closing
Date"). The consideration paid exceeds the value of the Company's BasicGov
Software-as-a-Service ("SaaS") business estimated by a business valuator to be
between $810,000 and $850,000 as of July 15, 2010.


The consideration paid on the Closing Date for the Company's SaaS business
assets was a combination of $750,000 in cash and the assumption of certain
liabilities of the Company. The actual amount of cash payable and the value of
the assumed liabilities will be calculated within 15 days of the Closing Date
and adjustments will be made for additional sales of subscriptions of the
Company's BasicGov service and increases or decreases in liabilities assumed by
the Purchaser between the date of the Sale Agreement and the Closing Date. The
adjustments to the amount paid in cash will such that the Company will have
$100,000 in working capital as of the Closing Date but immediately after the
share redemption and repayment of advances under the loan facility described
below. The Company will use this working capital to fund its expenses as a
publicly listed shell company and to seek a new business that has the potential
to attract greater support from the public market.


The completion of the Sale Transaction triggered redemption rights under the
Company's outstanding 250,000 Series 1 Preference Shares that were held by
Pender. As a result, such shares were redeemed by the Company at the time of the
Sale Transaction. The Company also repaid all working capital loans made by
Pender to the Company. A portion of the cash proceeds of the Sale Transaction
was used to redeem the Preference Shares and repay the loans. 


The Company's name was one of the assets acquired by the Purchaser, therefore,
effective at market opening on September 30, 2010, the name of the Company will
have changed to "Pedro Resources Ltd." and its stock symbol will be "PED".


At this time the Company is not completing a change of business, as that term is
used under policies of the TSX Venture Exchange, and the Company has not yet
identified a new business to be acquired by the Company.


Forward-Looking Statements

This news release contains forward-looking statements. Actual events or results
may differ materially from those described in the forward-looking statements due
to a number of risks and uncertainties, including the liabilities of the Company
being greater than expected and the risk that the Company is unable to complete
a transaction involving an acquisition of a new business or assets and potential
downturns in economic conditions generally. Forward-looking statements are based
upon management's estimates, beliefs and opinions. The Company assumes no
obligation to update forward-looking statements, other than as required by
applicable law.


On behalf of the Board of Directors

BASICGOV SYSTEMS, INC.

David Roberts, Director

Basicgov Systems Inc. (TSXV:BSG)
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