Mindoro Resources Ltd.

Mindoro Resources Ltd.
Panoro Minerals Ltd.

Panoro Minerals Ltd.

January 18, 2005 08:00 ET

Mindoro Resources Ltd. and Panoro Minerals Ltd.: Two Promising Porphyry Copper-Gold Drill Targets Defined on Agata Project; New Ground Acquired






JANUARY 18, 2005 - 08:00 ET

Mindoro Resources Ltd. and Panoro Minerals Ltd.: Two
Promising Porphyry Copper-Gold Drill Targets Defined
on Agata Project; New Ground Acquired

18, 2005) - Mindoro Resources Ltd. (TSX VENTURE:MIO)(FWB:OLM) and Panoro
Minerals Ltd. (TSX VENTURE:PML) today announced results from its Agata
Project, part of the Surigao Joint Venture on Mindanao Island in the
Philippines. A major geophysical program has been completed, which
defines remarkably strong IP anomalies extending semi-continuously over
4.5 kilometers of strike. Two particularly strong porphyry copper-gold
targets are emerging, one in the north area of the project and one in
the south. In between, and peripheral to the larger anomalies, satellite
anomalies occur, some of which are flanking known epithermal/mesothermal
gold mineralization and artisanal workings.

Tony Climie, President of Mindoro comments, "With its favorable
structural setting, abundance of gold prospects and gold-copper soil
anomalies, Agata has been a project that has intrigued us since we
started work on it in 1997. The joint venture funding has allowed us to
fast-track and explore Agata aggressively, and we now have defined two
excellent porphyry copper-gold targets, as well as other promising gold
and nickel prospects. We are very excited about results to date and look
forward to moving quickly ahead to major drill programs."

Agata is a highly mineralized project, and has been the site of
historical and ongoing artisanal gold mining. It is in a favorable
structural setting, at the intersection of cross-cutting faults and a
splay of the Philippines Fault, which has focused mineralizing
intrusions. Past work by Mindoro focused on epithermal gold
mineralization. A 1999 scout drilling intersected promising epithermal
gold mineralization in intrusives and limestone, and also recognized the
high potential of Agata for porphyry copper-gold deposits. In 2004 the
project was joint-ventured with Panoro Minerals Ltd. and an aggressive
exploration program focused on porphyry copper-gold deposits commenced.

A total of 75 line kilometers of induced polarization and magnetic
geophysical surveying, as well as geological mapping and sampling, has
been completed. The geophysical survey was performed by Elliott
Geophysical International Pty. Ltd. of Perth, Australia. The geophysical
data are being modeled at this time, and shapes of anomalies may change
slightly. The accompanying map is a compilation of the main features of
Agata. Two intense and broad chargeability anomalies have been outlined,
one in the north (North Target) and one in the south (South Target), as
well as peripheral anomalies.

The North Target is a very large chargeability anomaly, of greater than
20 m/secs (to 31 m/secs), that covers about 1.6 kilometers by 800
meters. Ultra-mafic rocks in the area exhibit intense
quartz-magnetite-(pyrite) alteration, with coincident soil anomalies.
The alteration is believed to be related to an underlying intrusive
complex, which has high potential for associated porphyry copper-gold

The South Target is also a large and extremely strong chargeability
anomaly of greater than 20 m/secs (to 39.7 m/secs), and has a flanking,
strong resistivity high anomaly. The anomalies extend onto another
tenement which has been secured by the joint venture (see Agata
Compilation map on Mindoro's website). Geological and geochemical
evaluation of the South Target is in its early stages. Small dykes or
stocks of altered intrusive, likely the top of a much larger intrusive
complex, have been mapped. There are historical and ongoing artisanal
gold mining operations in this area. Soil geochemical surveys carried
out by Mindoro in 1997 partially covered the South Target and defined
gold, zinc and copper anomalies. The South Target geological,
geochemical and IP results strongly point to a porphyry copper-gold
system at depth.

In addition, a number of other broad, lower order, yet significant,
chargeability anomalies have been defined between, and peripheral to the
North and South Targets. Surface mineralization and artisanal workings
indicate that these may be related to epithermal or mesothermal
gold-pyrite mineralization in limestones and other lithologies, and to a
pyrite halo associated with the intrusive complexes.

The tenement within the Agata Project (see map) is a Mineral Production
Sharing Agreement application covering 81 hectares. This has been
acquired by the Surigao Joint Venture and an application has been filed
to convert the area to an Exploration Permit. Mindoro will initially
hold a 75% interest in the newly acquired ground with the remaining 25%
held by a private Philippine company. Panoro has exercised its option to
include the acquisitions in the Surigao Joint Venture and, thereby, has
the right to earn a 40% interest from Mindoro.

As consideration for the acquisition, the vendor was paid 500,000
Philippine pesos (approximately $10,875 Canadian dollars) and, upon
approval of the Exploration Permit, will receive 100,000 Mindoro shares.
The vendor will also receive a quarterly advance on royalties in the
amount of 50,000 Philippine pesos (approximately $1,087 Canadian
dollars). One year after the approval of the Exploration Permit, the
vendor will receive a further 250,000 Mindoro shares and, upon a
decision to commence production, an additional 500,000 Mindoro shares.
For the commercial exploitation of the property, the vendor will receive
a royalty of one point five percent Net Smelter Returns (NSR) for the
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

The 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 Surigao Projects will be released in the
near future.


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.


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.


Contact Information

    Ascenta Capital Partners Inc.
    Marshall Farris
    Investor Relations
    (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.