Columbia Metals Corporation Limited

Columbia Metals Corporation Limited
Aquiline Resources Inc.

Aquiline Resources Inc.

April 28, 2005 09:23 ET

Columbia Enters into Agreement with Aquiline To Settle Ownership Issues Respecting La Jojoba Property and Enters into Agreement to Acquire La Jojoba Property from Current Owners


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: COLUMBIA METALS CORPORATION LIMITED

TSX VENTURE SYMBOL: COL

AND AQUILINE RESOURCES INC.

TSX VENTURE SYMBOL: AQI

APRIL 28, 2005 - 09:23 ET

Columbia Enters into Agreement with Aquiline To Settle
Ownership Issues Respecting La Jojoba Property and
Enters into Agreement to Acquire La Jojoba Property
from Current Owners

TORONTO, ONTARIO--(CCNMatthews - April 28, 2005) - Columbia Metals
Corporation Limited (TSX VENTURE:COL) ("Columbia") and Aquiline
Resources Inc. (TSX VENTURE:AQI) ("Aquiline") are pleased to announce
that they have entered into an agreement (the "Settlement Agreement") to
settle certain ownership issues respecting the La Jojoba Property. Under
the terms of the Settlement Agreement, if Columbia acquires the La
Jojoba Property from the current registered owners, the Velez family of
Magdalena de Kino, State of Sonora, Mexico (the "Vendors"), Aquiline
agrees to settle all disputes with the Vendors, including any pending or
threatened litigation with respect to the La Jojoba Property.

Pursuant to the Settlement Agreement: (i) Columbia has agreed to pay
Aquiline the sum of Cdn. $500,000, and (ii) subject to the approval of
the TSX Venture Exchange, Aquiline has agreed to subscribe for 625,000
units of Columbia ("Unit") at a price of Cdn. $0.80 per Unit, each Unit
comprised of one common share of Columbia ("Common Share") and one
Common Share purchase warrant ("Warrant"), each Warrant exercisable at a
price of Cdn. $0.90 per Common Share for a period of two (2) years from
the date of issue.

In addition, Columbia has agreed to grant a 2% net smelter return
("NSR") royalty to Aquiline on the La Jojoba Property. Columbia has the
right to acquire the 2% NSR royalty from Aquiline, free and clear of any
encumbrances upon the payment of Cdn. $1,000,000 for each 1% NSR royalty.

In August of 1994, Aquiline entered into two agreements with the Vendors
relating to the claims comprising the La Jojoba Property. Aquiline is
currently in dispute with the Vendors as the mineral rights reverted to
the Vendors and Aquiline has been unable to recover value-added taxes
paid in respect of the La Jojoba Property.

In 2003, Aquiline initiated an action in Mexico against the Vendors to
have Aquiline's rights to the La Jojoba Property reinstated and filed a
claim in Mexico on the La Jojoba Property.

Purchase Agreement:

Columbia is also pleased to announce that it has entered into an
agreement (the "Purchase Agreement") for the purchase (the
"Transaction") of the La Jojoba Property (the "La Jojoba Property") from
the Vendors, the current owners of the La Jojoba Property. Under the
terms of the Purchase Agreement, Columbia has agreed to pay the Vendors
a total of US$1,510,000 for the La Jojoba Property. The terms of the
payments are as follows: US$10,000 upon entering into the Purchase
Agreement (which has been paid), US$400,000 on June 30, 2005, US$300,000
on December 30, 2005, US$300,000 on June 30, 2006 and a final payment of
US$500,000 on June 30, 2007. Columbia has until June 30, 2005 to
complete its due diligence on the La Jojoba Property under the terms of
the Purchase Agreement, and closing of the Transaction is subject to
completion of such due diligence to the satisfaction of Columbia.

Property Description:

The La Jojoba Property comprises of 4 claims (528.9 hectares) and is
located some four kilometres west of Columbia's recently acquired Lluvia
de Oro gold processing plant. The La Jojoba Property claims contain
several gold occurrences which have been intermittently explored in an
attempt to discover sufficient resources to support a
stand-alone-operation. The Northeast Deposit (Zone) is said to contain a
Measured and Indicated, in situ, gold resource of 6,400,000 tonnes
averaging 1.03 grammes per tonne gold (1.03g/T Au) (212,000 ounces). The
foregoing historical estimate published by Aquiline, in September, 1997,
and the following Hecla Mining Company estimates are pre NI-43-101
implementation, and therefore are not to be relied upon. The foregoing
Aquiline estimate was contained in an independent study commissioned by
Aquiline and is not substantially different from the resource estimates
produced in August 1997 by Hecla Mining Company who used ordinary
kriging for one estimate (1) and nearest-neighbour estimates for the
other (2) All estimates use a grade cut-off of 0.3 g/T.



Category Tonnes Grade (g/T) Ounces
(1) M&I(a) 7,390,000 0.82 196,000
Inf.(b) 1,509,000 0.52 25,000

(2) M&I 5,439,000 1,276 223,000

M&I(a) equals measured and indicated resources
Inf.(b) equals inferred resources


Columbia has not done the work necessary to verify the classification of
the resource or reserve,
Columbia is not treating them as a NI 43-101 defined resource or reserve
verified by a QP and
the historical estimates should not be relied upon.

Columbia's engineers will be conducting due diligence review of all the
data and will examine the possibility of processing the Jojoba
mineralization at Columbia's nearby Lluvia facility.

Additionally Columbia has acquired 3914 hectares adjacent to and between
the La Jojoba and Lluvia de Oro deposits. Columbia now controls the
contiguous mineral rights to some 60 square kilometres in the immediate
vicinity of the two deposits.

This press release was prepared by J. E. Steers, P. Eng. VP Exploration,
Columbia Metals Corporation Limited.


-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Columbia Metals Corporation Limited
    Carl Di Placido
    President
    (416) 364-6799
    or
    Aquiline Resources Inc.
    Marc Henderson
    President & CEO
    (416) 599-4133
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.