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Franklin Oil &Amp; Gas, Bolivia and YPFB to Form a S.A.M. Corporation

Posted on: Wednesday, 9 August 2006, 09:00 CDT

Franklin Mining, Inc. (PINKSHEETS: FMNJ) CEO, Jaime Melgarejo announced today that Dr. Jorge Alvarado, President of YPFB, confirmed that Bolivia's proven and probable natural gas reserves have been understated for several years and that steps are being taken to correct all reports. YPFB and Franklin Mining (PINKSHEETS: FMNJ) will enter into a S.A.M. (Bolivian Joint Venture 5149, an associated partnership) which guarantees investment and gas per Bolivian law.

As reported by PetroleumWorld.com on June 6, 2006, Franklin Mining, Inc. GTL investment commitments by the world's largest oil companies appear likely to expand significantly over the next decade. Virtually all major oil production companies including ExxonMobil, Shell, ConocoPhillips and Chevron have announced GTL programs that are either in place or soon will be in place. The Peninsula, Qatar's leading English-language newspaper, reported in their May 24, 2006 online edition under the headline "Qatar enters energy big league, signals caution" a string of mega-projects to produce clean, liquid fuels from Qatar's gas reserves -- the world's third largest. (http://www.petroleumworld.com/story06060912.htm)

Bolivia holds Latin America's second largest natural gas reserves; the increased natural gas availability together with an increasing worldwide demand for GTL-produced fuels provides the YPFB and Franklin (PINKSHEETS: FMNJ) joint venture with a promising export market.

YPFB executives have traveled to the U.S. to confirm the suspected errors in calculating reserves. YPFB technicians have traveled to Argentina to better understand the determination and reporting process for proven and probable natural gas reserves.

It is against this backdrop that Bolivia's YPFB, in S.A.M. (Bolivian Joint Venture 5149, an associated partnership) with FMNJ's Franklin Oil & Gas, Bolivia S.A., has confirmed a plan to construct and operate a single plant capable of generating an almost immediate end to Bolivian reliance on imported diesel fuels. The S.A.M. joint venture percentage is shared 51/49, with 51% allotted to YPFB and 49% to Franklin Oil & Gas.

In a partnership structured almost identical to an agreement between ExxonMobil and Qatar Petroleum (Oil Daily, July 15, 2004), Franklin will provide the project's technology and management skills and arrange financing of the plant's design and construction costs, while partner YPFB will provide the natural gas. In addition, YPFB will provide a sales, marketing and distribution infrastructure for diesel fuels.

Basic GTL technology dates to 1923 when two German scientists (Franz Fischer and Hans Tropsch) invented a process for converting natural gas to a hydrocarbon, which could be upgraded to petroleum products. GTL-produced diesel fuel significantly reduces emissions resulting in less pollution, cleaner air.

Because fuel produced by the YPFB and Franklin joint venture's processing plant will be identical in all characteristics to the diesel fuel presently being imported, all existing marketing and distribution resources and methodologies will remain unchanged, requiring no capital investment. At current daily consumption rates, an estimated 3,500 to 5,000 barrels per day will be available for export after Bolivia's domestic requirements are met. The current market price of conventional grade diesel fuel ranges between $65 and $67 per barrel.

Franklin Oil & Gas, Bolivia S.A. (a Bolivian corporation) is a subsidiary of Franklin Mining, Inc. YPFB (Yacimientos Petroliferos Fiscales Bolivianos), is Bolivia's state-owned oil company. Their joint venture company will maintain a Regional Office in La Paz and an operations office in the city of Santa Cruz. The joint venture's GTL processing plant is planned to be constructed in the Grande River region of the Department of Santa Cruz, in the eastern portion of Bolivia.

Franklin Mining, Bolivia S.A. (a Bolivian corporation) is a subsidiary company of Franklin Mining, Inc. COMIBOL is Bolivia's state-owned mining company.

For additional information on Franklin Mining, Inc, please visit our web-site, www.franklinmining.com. To receive Franklin Mining news by e-mail, please send contact information to info@franklinmining.com.

DISCLOSURES:

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements that are subject to risk and uncertainties, including, but not limited to, the impact of competitive products, product demand, market acceptance risks, fluctuations in operating results, political risk and other risks detailed from time to time in Franklin Mining, Inc.'s filings with the Securities and Exchange Commission. These risks could cause Franklin Mining, Inc.'s actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, Franklin Mining, Inc.

Additional information on company operations is found at our website http://www.franklinmining.com/.

 Contact: Franklin Mining, Inc. Andrew Austin 702-386-5379 info@franklinmining.com

SOURCE: Franklin Mining, Inc.

Source: MARKET WIRE

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