Mindoro Resources Ltd.

Mindoro Resources Ltd.
Panoro Minerals Ltd.

Panoro Minerals Ltd.

January 20, 2005 08:00 ET

Mindoro Resources Ltd.: Copper-Gold Drill Targets Confirmed on Tapian San Francisco; New Ground Acquired


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: MINDORO RESOURCES LTD.

TSX VENTURE SYMBOL: MIO
FRANKFURT SYMBOL: OLM



AND PANORO MINERALS LTD.

TSX VENTURE SYMBOL: PML

JANUARY 20, 2005 - 08:00 ET

Mindoro Resources Ltd.: Copper-Gold Drill Targets
Confirmed on Tapian San Francisco; New Ground Acquired

EDMONTON, ALBERTA and VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan.
20, 2005) - Mindoro Resources Ltd. (TSX VENTURE:MIO)(FWB:OLM) and Panoro
Minerals Ltd. (TSX VENTURE:PML) today announced that its geophysical
exploration program has confirmed additional copper-gold targets on
their joint venture project in Surigao.

The major geophysical program defined seven chargeability anomalies at
the Tapian San Francisco Project, which is one of the projects in the
Surigao Joint Venture on Mindanao Island in the Philippines. The
anomalies are interpreted to represent sulphide mineralization; of
particular interest are the C4, C5 and C6 chargeability anomalies and
flanking resistivity anomalies, which correlate with strong and
extensive porphyry-style alteration. Copper and gold soil geochemical
anomalies are coincident with the geophysical anomalies and alteration.
These multiple stacked anomalies point strongly to the presence of a
porphyry copper-gold system at depth.

A compilation map of the main geological and geophysical results at
Tapian San Francisco is available on the companies' websites. The
project is in a favorable structural setting adjacent to the Philippine
Fault system and is on the extension of southwest structural trends
extending from the recent Boyongan and Bayugo discoveries about eight
kilometers away. The geophysical results are still being correlated with
geological and geochemical data, but it is clear that porphyry
copper-gold targets of considerable potential interest are emerging, and
that promising drill targets are being defined, in particular in the
southern part of Tapian San Francisco.

In the south, the C4, C5 and C6 chargeability anomalies, and peripheral
resistivity anomalies correlate with soil and rock geochemical
anomalies, and with strong hydrothermal alteration that extends
northeasterly for more than 1.5 kilometers and is about 800 meters wide.
This has a core of intense quartz-sericite-pyrite alteration extending
over one kilometers and averaging 200 meters wide, which is interpreted
as the phyllic zone of a porphyry copper-gold system. Alteration is open
to the southwest. The chargeability anomalies are interpreted to
represent sulphide mineralization at depth, and the resistivity
anomalies to represent associated quartz alteration (more details are
available in our news release dated Sept. 20, 2004).

The adjacent tenement to the south, a Mineral Production Sharing
Agreement ("MPSA") covering 486 hectares, has been acquired from private
Philippine interests. Although the Exploration Period of the MPSA has
expired, Mindoro has applied to the Philippines Mines Dept. to have it
renewed. Mindoro will hold a 75% interest in the newly acquired ground
with the remaining 25% held by a private Philippine company. Panoro has
the option to include the acquisitions in the Surigao Joint Venture and
earn a 40% interest. Should Panoro choose to not include the
acquisitions, then any Panoro shares issuable to the vendor may be
replaced with Mindoro shares.

As consideration for the acquisition and subject to regulatory approval,
Mindoro has paid the vendor 1,500,000 pesos (approximately CDN$32,000)
and will issue 40,000 Mindoro shares and 40,000 Panoro Shares. The
vendor will also receive 150,000 pesos (approx. CDN$3,000) six months
after the agreement date; 50,000 Mindoro shares and 50,000 Panoro shares
after one year; and 250,000 Mindoro shares and 250,000 Panoro shares at
both feasibility stage and upon a decision to commence production. For
the commercial exploitation of the property, the vendor will receive a
royalty of one point five percent NSR (Net Smelter Returns) for
production of gold and other minerals.

Work will extend to cover this new area; once this is completed and
drill targets have been prioritized, an extensive drilling campaign will
commence.

A total of 30 line kilometers of induced polarization and magnetic
geophysical surveying has been completed as well as detailed geological
mapping and sampling. Although there are abundant epithermal gold
showings at Tapian San Francisco, which are also being assessed for
their economic potential, the geophysical program focused on defining
underlying porphyry copper-gold targets. The survey was performed by
Elliott Geophysical International Pty. Ltd. of Perth, Australia, and
modeling of data carried out by S.J.V. Consultants Ltd. of Vancouver,
B.C. using an inversion program developed by a consortium of major
mining companies in conjunction with the University of B.C. The
geophysical report will be available on SEDAR and Mindoro's and Panoro's
website when completed.

The Mindoro/Panoro Surigao Joint Venture comprises a total land area of
24,000 hectares and is one of the largest land positions in the Surigao
Gold District where there have been several significant porphyry
copper-gold discoveries in recent years. A map showing recent
discoveries is available on both companies' websites at the links below:

Mindoro's website: www.mindoro.com/news-nov252004.htm

Panoro's website: www.panoro.com/news-nov252004.htm

Mindoro is the operator of the Surigao Joint Venture and work is carried
out under the supervision of Tony Climie, P.Geol., who is a qualified
person as defined by National Instrument 43-101, and President of
Mindoro. Results from other projects at Surigao will be released in the
near future.

ABOUT MINDORO

Mindoro is a Tier One Company trading on the TSX Venture Exchange (TSX
VENTURE:MIO) and the Frankfurt Stock Exchange (OLM). The Company is
exploring for gold and gold-copper in the prolifically mineralized
magmatic arcs of the Asia-Pacific Region. Mindoro has been active in the
Philippines since 1996 and is presently focused on six promising
projects in politically stable jurisdictions of the Philippines. For
further information please visit Mindoro's website at: www.mindoro.com.

ABOUT PANORO

Panoro Minerals Ltd. is a Canadian mineral exploration company listed on
the TSX Venture Exchange (TSX VENTURE:PML). Panoro's strategic focus is
on exploring for large-potential gold and copper/gold deposits in
countries with the corresponding geological potential and where the
right political and economic conditions are present. For further
information please visit Panoro's website at: www.panoro.com.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Ascenta Capital Partners Inc.
    Marshall Farris
    Investor Relations Contact
    (604) 628-5800 or Toll Free: 1-866-684-4209
    Email: info@ascentacapital.com
    Website: www.mindoro.com / www.panoro.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.