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EXMIN/Hochschild JV Drill Deep at the Moris Mine; Due Diligence Update

Posted on: Friday, 15 September 2006, 12:00 CDT

EXMIN Resources Inc. (EXMIN) (TSX VENTURE: EXM) is pleased to provide an update of the due diligence program currently underway at the Moris Mine. EXMIN previously entered into an agreement in conjunction with Minera Hochschild Mexico (MHM), the project operator, to purchase 100% of the mine and facilities from the present owner, Minera Moris, for a total purchase price of US$6 million (see press releases of July 18 and 19, 2006). Of the total purchase price, US$1.5 million has been paid, and payment of the remaining US$4.5 million is pending the results from the due diligence program. Upon the final payment of the purchase price, EXMIN will own 30% of the mine and MHM will own 70%. MHM commenced diamond drilling immediately upon signing the agreement between the EXMIN-MHM joint venture and Minera Moris on June 30, 2006.

Mina Santa Maria de Moris (Moris Mine) - Modern Production History

The Moris Mine, formerly operated by Manhattan Minerals (Manhattan) from 1997 to 1999, was shut down due to low gold prices. At the time of the mine's closing, Manhattan reported a remaining proven and probable reserve of 3.1 million tonnes at grades of 1.73 grams per tonne (g/t) Au and 6.55 g/t Ag, calculated with a gold price of US$300 and a cutoff of 0.74 g/t gold equivalent. Based on publicly disclosed information, approximately 25% of the original mineral resource calculated prior to commencement of commercial production was exploited by Manhattan.

Note: EXMIN is reporting data from the operation of Manhattan Minerals from 1999-2000. These data were generated before current industry regulations were adopted under NI 43-101 Standards and does not yet include a qualified reserve calculation. EXMIN considers these data 'historical' in nature. A Qualified Person has not completed sufficient work to classify the historical estimate as current mineral resources, and the historical information should not be relied upon. The EXMIN-MHM JV is replacing this data as reported in this release.

Santa Maria Vein System - Geology

All of Manhattan's production came from the Creston deposit. The Creston is one of 3 deposits in Manhattan's "historical resource". These three deposits were developed along the Santa Maria vein system, a north-south trending structure on the east side of the Moris valley. The vein system consists of massive quartz vein material with stockworks in the adjacent wall rock and varies from a few meters to more than 30 meters in width. The vein was exposed as erosional remnants on three hills and dips towards the valley, providing an ideal geometry for bulk-tonnage mining with a low stripping ratio. An additional 1 million tons of potential mineralization at similar grades was classified by Manhattan as measured and indicated resources and included a fourth deposit on a separate structural zone that has only been partly explored.

Exploration Upside - Potential Expansion of Resource

According to records of past exploration, the Santa Maria vein system has not been drill tested at depth below the historical resource blocks defined by Manhattan. As part of the due diligence program, and to assess the additional resource potential of the Santa Maria vein system, drilling of deeper core holes to explore the vein system under the resource blocks is in progress using two drill rigs. Two deep holes have been completed to date; assay results are pending.

Due Diligence Program - Progress and Data

Due diligence confirmation drilling of the remaining historical resource blocks reported by Manhattan on closing of the mine in 1999 is now advanced. A total of 658 meters have been drilled in twelve core holes, seven on the Creston deposit, three on the San Luis deposit, and two on the Eureka deposit. Assay results from the first seven holes have been received (see table below); all of these holes were drilled in the Creston deposit. All holes except HMC-2 were drilled to test blocks categorized as a "historical resource" by Manhattan at the time of the mine closure; hole HMC-2 was drilled in a low grade resource block below the blocks classified as a "historical resource". Splits of several samples have been sent to Peru for metallurgical testing by MHM.

Karl Boltz, President and CEO of EXMIN, stated, "The Moris Mine due diligence program is well advanced. Our partner, MHM, has undertaken an aggressive program to confirm the grade and metallurgy of the material included in Manhattan's original mineral resource. Several high grade intercepts indicate that grades occur in the deposit which may be amenable to underground mining. To our knowledge, the deposit has never been drilled at depth to explore for higher grade material that possibly could be mined by underground methods. We intend to continue to explore the extensions of the known vein system for additional mineralization."

 Due Diligence Program Data and Quality Control Assay results from drilling at the Creston Pit, Moris Mine ---------------------------------------------------------- Hole         Intercept(i)       Au         Ag   Hole Depth                       (m)     (g/t)      (g/t)          (m) ---------------------------------------------------------- ---------------------------------------------------------- HMC-1               8.60      0.88        2.5        100.0             and     6.00      0.50        2.9 HMC-2               4.65      0.31        1.0        100.0 HMC-3              30.65      1.07        2.2        120.0 HMC-4              34.75      2.69        3.9         90.0       including     9.00      6.86        5.7             and     4.75      1.06        1.3             and     2.00      2.77        2.1 HMC-5               0.45      3.38       60.0         42.0             and     6.70      2.45        8.7       including     0.45     13.85       14.5 HMC-6               8.10     14.78       22.0         60.1       including      6.0     19.35       26.3 HMC-7               4.55      0.67        2.0         46.5             and     1.45      4.74        3.4 ---------------------------------------------------------- (i) Intercepts shown approximate true widths Note: 1 gram per metric ton is equivalent to 1 ppm. 

Individual samples were prepared and analyzed by ALS Chemex at their labs in Mexico and Vancouver and generally consisted of more than 2 kg of material. Core was split into to approximately equal portions with one half sent to the geochemical lab for assay and the second half conserved for metallurgical studies. Gold analyses were performed by fire assay with an AA finish.

Dr. Craig Gibson, PhD., Executive Vice President of Exploration, is the authorized professional geologist for EXMIN Resources Inc. and the direct manager of all technical programs and information on the part of EXMIN.

Neither EXMIN's joint venture partner, Minera Hochschild Mexico, nor the Hochschild Mining Group accept any responsibility for the use of project data or the adequacy or accuracy of this release.

About MHC

Minera Hochschild Mexico (MHM) is a subsidiary of Hochschild Mining Group (MHC), a privately held, Peru-based, diversified metals and materials mining company that has been in operation since the early part of the last century. MHC produced approximately 10 million ounces of silver and 230,000 ounces of gold in 2005. MHC currently owns and operates 3 mines in Peru and is the majority shareholder and operator of the San Jose Au-Ag project in Argentina. MHC has exploration offices and ongoing exploration and acquisition programs throughout the Americas.

About EXMIN

EXMIN Resources Inc. (EXMIN) is currently focused on the exploration and development of precious metal properties of exceptional merit in the Sierra Madre gold belt of Northwestern Mexico.

Note: EXMIN Resources Inc. (EXMIN) has taken all reasonable care in producing and publishing information contained in this news release. Material in this news release may still contain technical inaccuracies, omissions or typographical errors, for which EXMIN assumes no responsibility. This news release may include certain "forward-looking statements" including but not limited to comments regarding predictions and projections. All statements, other than statements of historical fact, included in this news release, including, without limitation, statements regarding potential mineralization, exploration results, and future plans and objectives of EXMIN, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in documents filed from time to time with the regulatory authorities.

The TSX Venture Exchange has not reviewed this release and does not accept responsibility for the adequacy or accuracy of this news release.

 Contacts: EXMIN Resources Inc. Karl J. Boltz President & CEO 1-888-244-0304  EXMIN Resources Inc. Investor Relations 1-888-244-0304 info@exmin.comwww.exmin.com

SOURCE: EXMIN Resources Inc.

Source: MARKET WIRE

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