Coronation Minerals Inc.

October 30, 2007 16:55 ET

Coronation Enters Into Memorandum of Understanding With Jinchuan Group Ltd. of China

TORONTO, ONTARIO--(Marketwire - Oct. 30, 2007) - Coronation Minerals Inc. (TSX VENTURE:CMV)("Coronation") is pleased to announce that it has entered into a memorandum of understanding (the "MOU") with Jinchuan Group Ltd., a corporation incorporated under the laws of the Peoples' Republic of China ("Jinchuan") in connection with the advancement of Coronation 's Wellgreen and Copper River properties.

"This memorandum of understanding sets out the building blocks for a strategic partnership that will enhance long-term value to our shareholders and bring to the table the resources required to advance Coronation's properties. Our goal is to work with Jinchuan to capitalize on the potential benefits created by the MOU and to create an exciting long term future for all our shareholders and we believe that Jinchuan has the experience and funding required to help us meet that goal." said Peter Holmes, Chairman and CEO of Coronation.

The MOU contemplates four separate agreements to be entered into between Coronation and Jinchuan which are summarized as follows:

1. a private placement financing into Coronation by Jinchuan consisting of 30 million units at a price of $0.30 per unit for aggregate proceeds to Coronation of $9,000,000. Each unit will consist of one common share and 1/2 of one common share purchase warrant (each a "Warrant") with each whole Warrant entitling the holder to acquire one further common share at a price of $0.40, expiring 24 months from the date of issue. Following completion of the private placement, there will be 85,558,136 common shares issued and outstanding in the capital of Coronation, approximately 34% of which will be held by Jinchuan (prior to any exercise of warrants).

2. Coronation and Jinchuan will enter into an off-take agreement (the "Off-take Agreement") with respect to the Coppermine River and Wellgreen properties, granting Jinchuan the right to off-take all the concentrate produced during the whole life of any mines which may be opened on the Coppermine River or Wellgreen properties.

3. following execution of the Off-take Agreement and completion of an updated National Instrument 43-101 Report on the Wellgreen property, Jinchuan will make a pre-payment on the Off-take Agreement in the amount of $25,000,000 in order to fund the option payments required to be made on the Wellgreen property. This $25,000,000 pre-payment may be decreased by any amount received by Coronation from the exercise of the Warrants issued in connection with the private placement set out in paragraph 1. As the maximum amount receivable from the exercise of the Warrants would be $6,000,000, a total of at least an additional $19,000,000 would be payable in connection with such prepayment. If all 15,000,000 Warrants are exercised for proceeds of $6,000,000 (as set out above), Jinchuan would, assuming no other issuances, own approximately 43% of the outstanding common shares of Coronation; and

4. Jinchuan has agreed to provide technical support in all aspects of development of the Coronation 's Coppermine River and Wellgreen property.

In addition, to the foregoing, Jinchuan will have the right to nominate two directors to the Board of Directors of Coronation.

The transactions contemplated by the MOU are subject to negotiation and agreement between Coronation and Jinchuan and receipt of Jinchuan board approval, Coronation board and shareholder approvals and applicable regulatory approvals.

As a result of the private placement by Jinchuan set out in paragraph 1 above, Jinchuan would become a new control person for purposes of the rules and regulations of the TSX-V. In addition, the number of securities issuable to Jinchuan exceeds the maximum allowable under TSX-V rules without receipt of shareholder approval. For these reasons, the transactions contemplated by the MOU will be subject to receipt of approval from the TSX-V and the shareholders of Coronation at a special meeting which is expected to be held in late 2007 or early 2008.

Jinchuan is a large integrated non-ferrous metallurgical and chemical engineering enterprise engaged in mining, concentrating, metallurgy and chemical engineering. It produces nickel, copper, cobalt, rare and precious metals and also some chemical products such as sulfuric acid, caustic soda, liquid chlorine, hydrochloric acid and sodium sulfite, together with some further processed nonferrous metals products. The output of nickel and platinum group metals respectively accounts for more than 88% and 90% of the total in China. Jinchuan is the largest producer of nickel cobalt and platinum group metals in China.

Coronation is a Canadian based exploration and development company. Coronation presently controls and holds both the Wellgreen Property, Yukon Territory and the Coppermine River Project, Nunavut Territory. Both of these projects are described as Copper-Nickel-Platinum-Palladium prospects.

The Wellgreen Property is located 317 kilometers north-west of Whitehorse, just 10 kilometers off the Alaska highway. Significant surface and underground work has been carried out on the property between the initial discovery in 1952 and limited mining in 1972 and 1973 by Hudson Bay Mining Company Limited. Three zones of Copper-Nickel-Platinum-Palladium-Cobalt-Gold-Silver have been outlined on the property. Probable and possible reserves are calculated to be 50.03 million tonnes grading 0.35% copper, 0.36% nickel, 0.54grams/tonne platinum and 0.34 grams/tonne palladium (Preliminary Feasibility Study, Watts, Griffis and McQuat Limited, April 21, 1989.) Caution should be used when evaluating these reserves as they were calculated prior to NI 43-101 existing.

Cautionary Statements

This news release contains forward-looking statements regarding the proposed agreement between of Coronation and Jinchuan. Actual results and developments may differ materially from those contemplated by these statements depending on, among others, the risks that Coronation and Jinchuan will not be able to obtain the required approvals or clearances from regulatory or other agencies and bodies on a timely basis. The forward-looking statements included in this release represent Coronation's and Jinchuan's views as of the date of this release. While Coronation and Jinchuan anticipate that subsequent events and developments may cause their views to change, Coronation and Jinchuan specifically disclaim any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the views of Coronation and Jinchuan as of any date subsequent to the date of this release.

This press release is neither an offer to purchase securities nor a solicitation of an offer to sell securities. Investors and shareholders are strongly advised to read the information circular to be sent to Coronation shareholders in connection with the special meeting, as well as any amendments and supplements to those documents, when they become available because they will contain important information.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information