SOURCE: Brookmount Explorations Inc.

January 27, 2006 13:22 ET

Brookmount Explorations Positions Company to Benefit From Surging Gold Prices Through Drilling Program on Mercedes 100 Property

Independent Engineering Assessment Forecasts $98 Million in Revenues From Mercedes 100 Property

VANCOUVER, BC -- (MARKET WIRE) -- January 27, 2006 --Brookmount Explorations Inc. (OTC BB: BMXI) (http://www.brookmount.com/) announced today that it is in the final stages of preparations to commence a drilling program on its Mercedes 100 project in Peru. The drilling program recommended in a technical report (43-101) prepared by Guillermo Salazar, M.A., P. Geol. is intended to explore the significant potential of open pit mining on the Mercedes 100 property as well as to do a Reserve Audit to place more ore reserves into the proven category. Previous reserve estimates have placed the potential reserves anywhere from 480,000 tons to 1,950,000 tons of ore with one ounce of gold equivalent per ton.

"We have positioned the Company to benefit from rising gold prices through drilling activities in one of the most prolific locations in South America," said David Dadon, Brookmount Exploration's Chairman. "We have raised sufficient capital, begun to obtain permits and attempted to secure additional land holdings in the area so that we can benefit from the significant potential gold reserves on the property."

A recent report, titled "Mercedes 100 Project Economic Evaluation," was prepared by Paul Sterling, P. Eng., of Kanada Mobile Services Ltd. The report estimated projected revenue of $98 million. Kanada Mobile Services Ltd. is a full service metallurgical engineering and design consulting company that provides mining concerns with feasibility reports, cost estimations and financial analysis, detail design and procurement of process equipment and metallurgical consulting.

Brookmount's key property, the Mercedes 100 Project in central Peru, is situated on the geological trend hosting the prolific Arequipa Gold Deposit. Brookmount Explorations' mission is to discover, define, and develop a portfolio of key resource properties throughout North and South America.

Safe Harbor: This news release may include forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities and Exchange Act of 1934, as amended with respect to achieving corporate objectives, developing additional project interests, the Company's analysis of opportunities in the acquisition and development of various project interests and certain other matters. These statements are made under the 'safe harbor' provisions of the United States Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements.

Contact Information

  • Contact:
    Brookmount Explorations, Inc.
    Zaf Sungur,
    604-676-5244
    Email Contact
    www.brookmount.com

    CEOcast, Inc.
    for Brookmount Exploration
    Dennis Early,
    212-732-4300