SOURCE: Cotton & Western Mining, Inc.

September 21, 2006 12:00 ET

Cotton & Western Mining, Inc. Mindoro Island Update

MANILA, PHILIPPINES -- (MARKET WIRE) -- September 21, 2006 -- Robert L. Cotton, President & CEO of Cotton & Western Mining, Inc. (PINKSHEETS: CWRN), announced today that mini diamond core drilling has started on the Mindoro Island iron deposits.

There are no roads into the mountainous area of Mindoro Island and work crews hiked two days for some 30 kilometers to reach the iron deposits located off the upper reaches of the Mamburao River. Drilling equipment and supplies were flown in by helicopter, and it is expected that the drilling activities will take approximately fifteen days to complete. Ten holes will drilled at each location to take core samples of up to eighty feet deep from each of the four main iron deposits of Nagsabongan, Dayap, Lasala and Lapaao mineral leases. The purpose of these activities is to confirm the previous geological survey and reevaluate the total estimated metric tons of reserves.

SGS Lab in Manila will conduct the chemical analysis and mineralization test from the core samples. Magnetometer surveys have revealed three additional deposits at the Nagsabongan site and two new deposits at the Dayap site, bringing the estimated total known iron mineral reserves to over 120,000,000 metric tons at an estimated FOB value of $5,400,000,000.00 and CIF China value of $8,160,000,000.00.

There are several steel groups who have shown strong interest in signing long term off-take agreements with Cotton & Western Mining, Inc. for the grade A magnetite iron minerals of Mindoro Island. The company does not wish to comment to any group until late October of 2006. Mr. Cotton is in Manila for a meeting on Friday afternoon with one large steel group from China, and will return to Mindoro Island on Saturday and be out of communication for ten days.

Upon completion of the chemical analysis one of the deposits will be chosen for immediate opening, and construction of the heavy haul access road will begin in October with an estimated rough cut finish completed in seventy days. Management has set a goal of making at least one small 15,000 metric ton shipment of magnetite lump before the end of December 2006 and is working diligently to this end.

For more information on Cotton & Western Mining, Inc. please call (281) 232-8410, or visit the company website at:

About Cotton & Western Mining, Inc.:

Cotton & Western Mining, Inc. (PINKSHEETS: CWRN) is a U.S. corporation structured to produce and sell iron ore on a global scale. Currently, the Company is engaged in several mining activities and provides the Asia Pacific Steel Manufacturing Sector with high grade A raw crude iron ore products.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Except for historical information, the forward-looking matters discussed in this news release are subject to certain risks and uncertainties which could cause the Company's actual results and financial condition to differ materially from those anticipated by the forward-looking statements including, but not limited to, the Company's liquidity and the ability to obtain financing, the timing of regulatory approvals, uncertainties related to corporate partners or third-parties, product liability, the dependence on third parties for manufacturing and marketing, patent risk, copyright risk, competition, and the early stage of products being marketed or under development, as well as other risks indicated from time to time in the Company's filings with the Securities and Exchange Commission. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

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