Cash Minerals Ltd.

Cash Minerals Ltd.

January 29, 2007 08:00 ET

Cash Minerals to Acquire Majority Interest in Highly Prospective Uranium Property, Central Mineral Belt, Labrador

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 29, 2007) - Cash Minerals Ltd. (TSX VENTURE:CHX) today announced that a Letter of Intent has been signed with Cornerstone Capital Resources Inc. (TSX VENTURE:CGP) ("Cornerstone") to explore the Aillik Property, which is located adjacent to uranium properties held by Aurora Energy Resources ("Aurora") in the Central Mineral Belt, Labrador. Under the terms of the Letter of Intent, Cash Minerals and Cornerstone will enter into a Joint Venture agreement in which Cash Minerals has the ability to earn a majority interest in the Aillik Property.

The Central Mineral Belt is a prominent minerals district with reported uranium resources of approximately 35 million pounds. The Aillik Property is immediately adjacent to the Otter Lake Uranium Property, which is held by Aurora. Drill hole intersections from exploration drilling at Otter Lake include 1.0% U3O8 over 0.5 metres and 0.14% U3O8 over 1.0 metre. (Reported in the Fronteer Development Group Inc. ("Fronteer") news release dated January 4, 2006. Fronteer holds a 47.24% interest in Aurora.) Aurora is also exploring the Jacques Lake, White Bear Lake and Michelin properties. Located to the north of Aillik, Jacques Lake yielded 2006 drill hole intersections of 0.16% U3O8 over 17.13 metres and 0.18% U3O8 over 10.00 metres. (Reported in the Aurora news release dated January 16, 2007.) The White Bear Lake property yielded a 2006 drill hole intersection of 0.25% U3O8 over 15 metres. (Reported in the Aurora news release dated August 16, 2006.) The Michelin property hosts a Measured and Indicated Resource of 22.2 million pounds U3O8 with an additional Inferred Resource of 13.4 million pounds U3O8 (as stated on Aurora's website). In the news release dated January 11, 2007, Aurora announced that it will be updating its NI 43-101 compliant resources for the Michelin and Jacques Lake deposits in the upcoming weeks.

The Aillik Property is interpreted by the Geological Survey of Newfoundland and Labrador to be hosted in the same, or similar package of rocks that host the Michelin and Jacques Lake deposits, as well as the White Bear Lake and Otter Lake uranium systems. Specifically, Aillik is interpreted to contain the continuation of the corridor that hosts the Otter Lake uranium system and its associated radiometric anomaly. Aillik consists of a single block of 162 claims covering approximately 40.5 square kilometres. The property was staked in late 2006 after being released from Exempt Mineral Lands status that exempted staking since 1995.

"Entering the Central Mineral Belt is a very positive step for Cash Minerals in our plan to add to our portfolio of world-class uranium properties in the Wernecke District, Yukon. With the Aillik Property's close proximity to Aurora Energy Resources' properties, Cash Minerals will be strategically positioned in another recognized uranium district," said Mr. Basil Botha, President and Chief Executive Officer. "Aillik exhibits appreciable uranium potential as we believe it to contain the extension of a corridor containing the Otter Lake uranium property. We are pleased to have signed the Letter of Intent with Cornerstone, and we look forward to finalizing the Joint Venture agreement."

Under the terms of the Joint Venture agreement, in order to earn 51% of the Aillik property, Cash Minerals will be required to spend $3 million on exploration and pay to Cornerstone a total of $300,000 cash and 300,000 warrants over a four-year period. In the first year of the agreement (ending December 31, 2007), Cash Minerals will be required to spend $300,000 on exploration and pay to Cornerstone a total of $100,000 cash and 50,000 warrants. Under the direction of Dr. Geordie Mark, IOCG-U Geologist and his geological team, Cash Minerals will be the operator during the earn-in period. The agreement remains subject to regulatory approval.

In 2007, an extensive geophysical survey will be conducted over the Aillik property, from which specific drill targets will be identified. Geophysical surveys have been proven to be highly effective in identifying targets for uranium exploration.

While Cash Minerals' biggest land position for uranium exploration is still the Wernecke Uranium District, the Company is also focused on expanding its portfolio of highly prospective uranium properties. Mr. Botha continued, "The Company is seeking more acquisitions in recognized uranium districts. This initiative, together with the aggressive 2007 exploration program in the Werneckes, is driven by our commitment to grow the company and build shareholder value. With almost $20 million in the treasury and the strong uranium team that has been assembled, Cash Minerals has the financial resources and in-house expertise to successfully execute our plans for growth."

Figure 1. The location of the Aillik Property showing the distribution of uranium deposits, Central Mineral Belt, Labrador. To view this figure please click on the link provided below:

About Cash Minerals Ltd.

Cash Minerals ( is an emerging publicly listed energy company focused on uranium, coal and alternative fuels (synfuels). Under an agreement with joint venture partner Twenty-Seven Capital Corp., Cash Minerals has the option to earn a 75% interest in uranium prospects located in various parts of the Yukon. These highly prospective prospects include numerous IOCG, structurally-controlled hydrothermal uranium targets.

The Company is also engaged in exploring and developing coal properties in southwest Yukon Territory. The Division Mountain coal project comprises of five coal leases measuring 776.4 hectares and 30 territorial coal exploration licenses covering some 360,000 hectares in coal-bearing stratigraphy. The Division Mountain NI 43-101 report of December 21, 2005 states a measured resource of 52.5 million tonnes of high Volatile "B" Bituminous coal for the property, which occupies less than five percent of Cash Mineral's total coal leases in the Yukon. The potential exists to export coal through the Port of Skagway, Alaska, as well as providing feedstock for mine-mouth power station.

Cash Minerals is also pursuing the development of a coal mine in China which would provide feedstock to an adjacent coal-to-liquids (CTL) plant, which would utilize the Fischer-Tropsch process to convert coal into clean-burning fuel.

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