Cash Minerals Ltd.
TSX VENTURE : CHX

Cash Minerals Ltd.

May 30, 2006 09:20 ET

Cash Minerals Commissions Conceptual Study of Coal-To-Liquids Processing Plant in China

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 30, 2006) - Cash Minerals Ltd. (TSX VENTURE:CHX) today announced that Mr. Martin J. Van Sickels P.E. of MVS Consulting LLC has been retained to prepare a conceptual study on the production of Fischer-Tropsch fuels from coal in China. Prior to forming MVS Consulting, Mr. Van Sickels served as Vice President and Chief Technology Officer at Kellogg Brown and Root, Inc., one of the world's leading engineers and constructors of petrochemical, refinery and liquefied natural gas plants.

The coal feed for the Coal-To-Liquids (CTL) plant would be mined from a resource near the city of Manzhouli in the district of Zhalainuoer. In April 2006, Cash Minerals executed a Memorandum of Understanding (MOU) with a leading state-owned mining company and the Municipal Government of Manzhouli. The MOU established the foundation for the development of a coal mine which would supply the CTL plant. A joint venture mining agreement with respect to the development of this mine is currently being negotiated. (See cautionary note).

"Confirming the technical and economic viability of the 50,000 barrels per day CTL plant is a key step in the development of the project in China. We are very pleased to have again retained the services of Mr. Van Sickels, who has 40 years of experience in the field of petrochemicals, refining and synthetic fuels. Mr. Van Sickels will play an important role in helping us move to the next stage in this project," stated Mr. Basil Botha, President and Chief Executive Officer of Cash Minerals Ltd.

As previously stated, the MOU related to the development of the coal mine in China was achieved with the support of The Balloch Group, whom Cash Minerals retained to assist in the development of this project. From their base in Beijing, The Balloch Group will continue in this role and will gather key input data to be used for the conceptual study.

"Negotiation of the mining joint venture and discussions with potential technology partners are being conducted in parallel with the conceptual study," Mr. Botha continued. "While the project is still in the early stages, the information obtained to date indicates that the resources, technologies and political environment are present for an economically viable CTL project in China. There are very few places in the world with the geographical and political parameters which lend themselves to building a CTL plant and it is important that the specific criteria are present prior to making any financial commitments."

The criteria for developing a CTL plant include a large potential coal resource (1.5 to 2.4 billion tonnes), availability of low cost electricity, abundance of low cost water, favorable tax concessions, low cost feedstock (coal), abundant labour force, road and rail infrastructure, and willingness from local authorities to develop a plant of this nature. Mr. Botha stated, "We have now established that the Manzhouli area meets all the essential elements for a CTL plant. Following a favourable conceptual study, we will move forward on an exploration program (which would include the preparation of an NI 43-101 report) and a detailed feasibility study, which can proceed in tandem."

South Africa's Sasol has utilised Fischer-Tropsch (FT) technology for over fifty years, and is considered the foremost authority on FT technology. Sasol's three plants in South Africa produce over 160,000 barrels of fuel per day from coal. Additionally, Sasol is developing CTL projects in China and have recently completed a Gas-To-Liquid (GTL) project in Qatar. In March 2006, Shell (China) Limited entered into an MOU for a CTL project in China. Other manufacturers produce methanol from a wide variety of hydrocarbon feeds in numerous plants throughout the world. Beijing is encouraging the development of coal liquefaction to help curb a growing reliance on coal imports. Analysts predict that within a decade China could be producing up to 1.2 million BPD of coal-based synthetic fuel, or nearly 50% of 2005 imports. (Source: Reuters Business News Article 2006-04-21 Energy-Coal-Liquids). "Clearly the race is now on by the multi nationals to secure coal reserves and to form joint ventures with local companies in China," said Mr. Botha.

About Fischer-Tropsch Technology

Fischer-Tropsch (FT) is a proven process that creates clean burning liquid fuels from coal, including diesel, jet fuel and methanol, together with high quality waxes and lubricants. These products are created when coal is mixed with oxygen and steam at a high temperature and pressure to produce a gas. The gas is then transformed into a liquid fuel. Characteristics of these products include zero percent nitrogen, low aromatics, high cetane (energy density) number, over 50 percent reduction in particulate emissions and zero sulphur emission.

About Cash Minerals Ltd.

Cash Minerals is an emerging publicly listed resource company. The company is engaged in exploring and developing uranium and coal properties in Canada's Yukon Territory, and is involved in the development of a coal-to-liquids (CTL) project, which uses the Fischer-Tropsch process to convert coal into clean-burning diesel fuel. Cash Minerals' uranium exploration projects include eight quality projects. Four of these properties are iron-ore copper-gold prospects, three are cretaceous intrusive hosted prospects and one is a structurally controlled high grade uranium deposit. Cash Minerals' coal exploration has focused primarily on the Division Mountain project, which comprises of five coal leases and 30 territorial coal exploration licenses in the Yukon Territory. The Company's CTL project, located in China, is currently in the development stage.

Cautionary Note

Investors are cautioned that while Cash Minerals Ltd. is currently exploring opportunities for the development of a CTL plant, it does not currently have any such interest and that there are no guarantees that the CTL project will be implemented by the Company.

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