Dhanoa Minerals Ltd.
OTC Bulletin Board : DHNA

Dhanoa Minerals Ltd.

June 06, 2007 08:30 ET

Dhanoa Minerals Arranging the Acquisition of New Processing and Refining Plant, "Spanish Plant"; Acquisition to Dramatically Increase Company's Gold Recovery Rate and Production by 40%

TORONTO, ONTARIO--(Marketwire - June 6, 2007) - Dhanoa Minerals Ltd. (OTCBB:DHNA)(FRANKFURT:D7Z) announced today that the company has reached an agreement to acquire a new central processing and refining plant. The company believes this acquisition will increase the company's recovery rate at its gold producing properties in southern Ecuador by as much as 40% through the new centralized processing facility known as the "Spanish Plant." This improvement will greatly improve efficiency, eliminate waste and by products, and raise overall production levels, resulting in a direct corresponding increase in the company's revenues.

The "Spanish Plant" allows for the company to increase its' production significantly due to its capacity to refine greater tonnage of ore, resulting in higher production levels. With the ability to increase production through the "Spanish Plant" Dhanoa Minerals is considering the further acquisitions of neighboring producing mines in the expectation of increasing production through the processing of greater tonnage of ore on a monthly basis.

If there are periods where Dhanoa Minerals is not using the "Spanish Plant" to the plant's full running capacity the company has taken the steps to lease out the processing facility to neighboring gold producing properties for a fee. In addition, Dhanoa will additionally charge a percentage of the neighboring mining company's gold production for use of the processing facility as well. These alliances with neighboring gold producing properties provide Dhanoa with addition and consistent revenue streams and allow operation at the "Spanish Plant" at full capacity on a continual basis. At the present time Dhanoa has a gold recovery rate of approximately 50% of its potential value using its current plant and current methods. However, once the new processing plant is acquired, the company should achieve a 90% recovery rate at a reduced cost. This would substantially increase profit margins, which would be a significant milestone for the emerging natural resource producing company. "With the Spanish Plant, we will significantly increase our production of gold and silver, while reducing overhead and over associated production costs", stated Mr. Lee Andrew Balak, President of Dhanoa Minerals. "This is a significant milestone for the company and an ideal acquisition for us."

About Dhanoa Minerals Ltd.

'Dhanoa' is a production stage company formed for the purpose of acquiring, exploring, and developing natural resource properties. Activities during the production and exploration stage include further development of the Company's business plan and raising capital. The Company has recently initiated a new program to evaluate undervalued assets for potential addition to its mineral claim portfolio.

Forward Looking Statements

Statements contained in this news release that are not historical facts are forward looking statements that involve risks and uncertainties. Actual results may differ materially from any forward looking statements due to many risk factors which include, but are not limited to, no operating history and no earnings, reliance on the Company's management team, the ability to successfully implement the Company's business plan, the ability to fund the Company's business strategy, competition and general economic conditions. Reference is made to our filings made with the United States Securities and Exchange Commission.

This news release is not intended for Canadian Investors.

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