Franconia Minerals Corporation
TSX VENTURE : FRA
OFEX : FRA

Franconia Minerals Corporation

May 23, 2006 10:30 ET

Franconia Receives $750,000 from Warrant Exercises

SPOKANE, WASHINGTON--(CCNMatthews - May 23, 2006) -

THIS PRESS RELEASE, REQUIRED BY APPLICABLE U.K. AND CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.

FRANCONIA MINERALS CORPORATION (TSX VENTURE:FRA)(OFEX:FRA) ("Franconia" or the "Company") is pleased to announce that, pursuant to the terms of previously announced non-brokered private placement (see Franconia press release of February 10, 2006) and in response to the Company's notice that the weighted average price of the common shares on the TSX Venture Exchange has been equal to or greater than Cdn$0.60 for a period of 15 consecutive trading days, all unit-holders have exercised their rights to convert their warrants into the Company's common shares. The Company is issuing 2,500,000 new common shares from Treasury in exchange for these warrants.

In February, the Company raised Cdn$1,000,000 through the issuance of units at Cdn$0.20 per unit. Each unit consisted of one common share and one-half common share purchase warrant. Each whole warrant entitled the holder to purchase one additional common share at an exercise price of Cdn$0.30 at any time prior to the earlier of: a) the date which is the 15th trading day after receiving notice from the Corporation that the weighted average price of the common shares on the TSX Venture Exchange has been equal to or greater than Cdn$0.60 for a period of 15 consecutive trading days; and b) August 8, 2007. The common shares and common share purchase warrants issued are subject to a hold period expiring on June 9, 2006.
In addition to the net proceeds originally received from the offering, the Company will receive proceeds of $750,000 from the exercise of these warrants.

Franconia Minerals Corporation trades on both the TSX-V in Canada and OFEX in the UK under the symbol FRA. The directors of Franconia Minerals Corporation accept responsibility for this announcement. The Company presently has 37,025.054 common shares issued and outstanding. (For additional information see www.franconiaminerals.com.)

Brian Gavin, President

Franconia Minerals Corporation

This document, which has been issued by Franconia Minerals Corporation (Franconia), has been approved solely for the purposes of Section 21 of the Financial Services and Markets Act 2000, by Lion Capital Corporation Limited (Lion), 4th Floor, 2 Cromwell Place, London SW7 2JE, who is authorised to carry on Investment Business by the Financial Services Authority. Lion, is acting as advisers for Franconia and to no-one else and will not be responsible to anyone other than Franconia for providing protections afforded to customers of Lion for providing advice in relation to any investment made pursuant to this announcement and makes no recommendation for the suitability of any investment, which is the subject of this announcement. FORWARD-LOOKING STATEMENT: Although Franconia Minerals Corporation believes many of its properties have promising potential its properties are in the early stages of exploration. None have yet been shown to contain proven or probable mineral reserves. There can be no assurance that such reserves will be identified on any property, or that, if identified, any mineralization may be economically extracted. Incorporated in Alberta Canada No. 207953670.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information