Bandera Gold Ltd.
TSX VENTURE : BGL

Bandera Gold Ltd.

January 31, 2007 16:35 ET

Bandera Gold Ltd.: Summary of NI43-101 Report

EDMONTON, ALBERTA--(CCNMatthews - Jan. 31, 2007) - Bandera Gold Ltd. (TSX VENTURE:BGL) -

Some highlights of the NI43-101 Technical Report completed on December 11, 2006, and filed with the TSX Venture Exchange, in addition to selected information regarding our anticipated work schedule for the next six months to a year, are as follows:

1. The chronological history of the Cinco Minas and area mines illustrates the vast potential of this overall mining area to support economical mining activities today and in the future. Bandera Gold Ltd., together with our joint venture partner Minera San Jorge (MSJ), is making considerable positive strides to make this happen.

2. New low level aerial photography and GPS controlled survey work will be undertaken during the early spring of 2007 when vegetative cover is at a minimum in order to proceed with field exploration and mapping of known mineralized deposits in the El Abra and El Abrita areas of the Cinco Minas property. This will allow for new three dimensional mapping to be completed in order to be able to prepare a thorough block model of the fault structure and related cross structures.

3. Test production of high grade materials (old tailings dump material and other materials obtained from small high grade deposits on the Cinco Minas property) will be commenced between late February and early March when construction of the 60 tonne/day mill has been completed. There is sufficient high grade material within the old dumps (greater than 6000 tonnes selectively determined) to run the mill for at least 100 days. Assays taken indicate an average grade of 3.32 g/t (0.104 oz/t) Au and 324.2 g/t (10.42 oz/t) Ag (see Appendix 1). This works out to a total value of metal recovered of approximately $1.1M (US) or about $330,000.00 (US) per month, assuming an average gold price of $640 US per oz and an average silver price of $13.20 US per oz.

4. Additional high grade feed for the mill will come from the Destajos and Trinidad level adits as well as other high grade areas which have been and are being identified. This high grade material will be blended with lower grade materials from Cerro Colorado and/or additional old tailings dump materials. It is expected that sufficient volumes of high grade material will be available to run the 60 tonne/day mill in a testing mode for at least an additional year and that these will provide sufficient feed for the 250 tonne/day mill (to be constructed later this year) for at least as long. Sampling in the San Diego Cross area of the Destajos level produced an average grade across 6.3m of 4.0 g/t (0.125 oz/t) Au and 458 g/t (14.35 oz/t) Ag (see report at page 1).

5. Bulk sampling has been completed at the crest of Cerro Colorado and this lower grade material will be used in a test heap leach operation with the objective of expanding the heap leach pad to at least 500,000 tonnes over the next six months to a year. An agreement has been reached with the local council to develop an area of approximately 244,750 square meters (24.5 hectares) for use in the test heap leach operation (see page 27). It is expected that the pad will be ready for initial heap leach testing by late summer or fall of 2007.

6. The mineral resource volumes for indicated and inferred resources have increased to 7.07 million tonnes from 2.67 million tonnes in the previous report of March 2006 (see Mineral Resource and Mineral Reserve Estimates at page 81). This is triple the previously reported volume of mineral resources based on the very structured and concise format required under NI43-101. The resource is representative of approximately 235.70 thousand oz of Au and 23.33 million oz of Ag. These quantities of gold and silver are representative of a present supportable valuation of the project according to NI43-101 of approximately Four Hundred and Sixty Million dollars ($460,000,000.00) US at the present day gold and silver prices of $640 per oz Au and $13.20 US per oz Ag (see page 85).

7. To date, references from older reports have indicated that only 20% of the known main Cinco Minas vein system has been tested. Bandera intends to continue field work begun in 2006 to identify new sources of mineralized sections. It is expected that this work will considerably enhance the reported mineral resource volumes given in this technical report.

The technical information contained in this news release was collected, compiled and reviewed by Richard Munroe, B.Sc., FGAC, P.Geo., a qualified person under NI43-101.

Bandera Gold Ltd. is a Junior Canadian Exploration Company whose corporate strategy is to build shareholder value by finding and developing overlooked and undervalued mineral properties in North America and South America. By partnering with an experienced mining and mineral exploration entity, the Company's core focus will be the continued exploration and advancement of the Cinco Minas property in Mexico to production, exploration of the Gran Cabrera property in Mexico and the exploration of the Belmira property in Colombia.

On behalf of the Board

Kelvin Williams, CEO

The foregoing information may contain forward-looking statements relating to the future performance of Bandera Gold Ltd. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties are detailed from time to time in the Corporation's filings with the appropriate securities commissions.

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

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