Cash Minerals Ltd.
TSX VENTURE : CHX

Cash Minerals Ltd.

January 16, 2007 09:00 ET

Cash Minerals Announces A New Discovery at the Bonnie Property, Wernecke Uranium District in Yukon, with First Drill Hole Intersection of 0.078% U3O8 Over 4.92 metres

Surface samples show grades as high as 0.939% U3O8 over 1 metre

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 16, 2007) - Cash Minerals Ltd. (TSX VENTURE:CHX) today announced a drill hole assay of 0.078% U3O8 over 4.92 metres, including 0.383% U3O8 over 0.83 metres, and surface assays of 0.939% U3O8 and 0.181% U3O8 from a new discovery at the Bonnie property. Bonnie is one of 15 newly discovered properties in the Wernecke Uranium District staked during the 2006 exploration season and is located southwest of the Lumina Property. These assays, in addition to assays from other properties reported by the Company, support the 2007 expanded drill program. This program will continue to focus on Cash Minerals' objective of defining a resource in the Wernecke District.

"The extremely encouraging assay results from Bonnie, particularly the 4.92 metre U3O8 drill intersection very close to surface, further demonstrates the potential of the Wernecke District and supports the aggressive uranium exploration program that Cash Minerals is planning for 2007," stated Basil Botha, President and CEO. "Our program will have one of the largest budgets for uranium exploration in Canada this year. With the appreciable number of new discoveries in the Werneckes in 2006, this region continues to be an exciting uranium district. Bonnie is another Cash Minerals property that management may joint venture to an interested uranium exploration company."

Tables 1 and 2 highlight the drill hole and surface assays from Bonnie in 2006.



Table 1: Drill Hole Assays from Bonnie
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Hole # From (m) To (m) Intersection (m) U3O8 (%)
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BN06-1 45.63 50.55 4.92 0.078
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includes 49.72 50.55 0.83 0.383
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BN06-3 153.81 156.52 2.71 0.014
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Table 2: Surface Assays from Bonnie
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Sample # Description Width (m) U3O8 (%)
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C103642 Chip 1.0 0.939
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C103643 Chip 2.0 0.181
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C103644 Outcrop N/A 0.028
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The two chip samples were collected from fracture-controlled veins within Wernecke Breccia approximately 100 metres from a fault contact with Quartet Group sedimentary rocks. The outcrop sample was collected 800 metres west of the chip samples. The drill core intersection occurs close to surface and may represent the continuation of the same fracture system exposed at surface.

All analyses for the Bonnie property were conducted at SRC Geoanalytical Laboratories in Saskatoon, Saskatchewan. Uranium values were routinely obtained by total digestion ICP analyses with confirmation by assays for all samples exceeding 1000 ppm. Reproducibility is excellent within and between techniques. Measured radioactivity correlates well with analytical results.

Exploration in the Wernecke Mountains is being managed by Archer, Cathro & Associates (1981) Limited under supervision of W.A. Wengzynowski, P.Eng. who is the qualified person as specified in National Instrument 43-101 for technical disclosure in this news release.

For a map showing the location of the Bonnie property, please follow the link http://www.cashminerals.com/s/Uranium.asp?ReportID=103562.

About Cash Minerals Ltd.

Cash Minerals (www.cashminerals.com) 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 and 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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