Desert Sun Mining Corp.

Desert Sun Mining Corp.

January 11, 2005 12:10 ET

Renowned Gold Expert Ferdinand Lips Joins Desert Sun Advisory Committee


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: DESERT SUN MINING CORP.

TSX SYMBOL: DSM
AMEX SYMBOL: DEZ

JANUARY 11, 2005 - 12:10 ET

Renowned Gold Expert Ferdinand Lips Joins Desert Sun
Advisory Committee

TORONTO, ONTARIO--(CCNMatthews - Jan. 11, 2005) - The Board of Directors
of Desert Sun Mining Corp (TSX:DSM)(AMEX:DEZ) is pleased to announce
that Ferdinand Lips has joined the Company's Advisory Board. Mr. Lips is
a well-known fund manager and is one of the world's foremost authorities
on the gold market.

Stan Bharti, P.Eng., Chairman of Desert Sun commented: "We are very
pleased that Ferdinand Lips has joined the Advisory Board of Desert Sun
Mining. His vast knowledge and experience will be an invaluable addition
to the strong group of Advisors we have assembled."

Born in Switzerland, Ferdinand Lips has over 50 years experience in
banking and finance. Over his career he has been Managing Director of
Rothschild Bank AG, Zurich and Chief Executive Officer of his own
Private Bank, in addition to a top-performing precious metals fund
manager. With 30 years direct experience in the gold industry, Mr. Lips
has served as a Director of Randgold & Exploration (JSE:RNG), Randgold
Resources (LSE:RRS.L), and Durban Roodeport Deep (Nasdaq:DROOY). He is
currently Chairman and manager of the Top-Gold Fund, based in the
Principality of Liechtenstein.

Mr. Lips was a founding member of the Swiss Association of Security
Analysts and is a trustee of FAME, Foundation for the Advancement of
Monetary Education, based in New York. He has widely lectured on
monetary history, bonds and stock markets.

In addition to Ferdinand Lips, the Desert Sun Advisory Board includes
William Clarke, former Canadian Ambassador to Brazil, David Williamson,
a mining and commodity analyst in London, UK, Dr. Rick Garnett, a
geologist with over 40 years experience worldwide, and Dr. Chuck
Thorman, a recognized expert in the geology of Brazil.

Desert Sun Mining is a Canadian gold exploration and development company
listed on the Toronto Stock Exchange and the American Stock Exchange.
Desert Sun owns 100% of the Jacobina Mine and the 155 km long Bahia Gold
Belt in the state of Bahia, in northeastern Brazil. The mine will
re-start operations in the first quarter of 2005. The SNC Lavalin
Feasibility Study, completed in September 2003, indicates that the mine
can produce at a rate of 102,000 ounces of gold per year at an average
cash cost of US $189 per ounce.

As a result of the 2004 exploration program, both Measured and Indicated
resources and Inferred resources have increased significantly. Current
Measured and Indicated resources now total 24,800,000 tonnes @ 2.53 g/t
Au containing 2,050,000 ounces of gold. Inferred Resources total
22,000,000 tonnes @ 2.61 g/t Au containing 1,900,000 ounces of gold. The
company is in the process of updating its Reserve Estimate.

Desert Sun previously released (see press release of February 12, 2004
and report filed on SEDAR) the results of a scoping study by SRK
Consulting that extended the SNC Lavalin Feasibility Study mine plan an
additional 11 years by scheduling the potentially "mineable tonnes"
resulting from the conversion of inferred resources based on historical
data. SRK Consulting considered that Jacobina has the potential to
deliver "economically mineable tonnes" containing 2 million recoverable
ounces of gold and that the optimum production rate at Jacobina was
likely 5,200 tonnes per day or 154,000 ounces of gold per year. While,
it must be cautioned that the SRK study is not adequate to definitely
confirm the economics of the inferred mineral resources, the 2004
drilling program has successfully upgraded a substantial amount of the
existing inferred resource to the indicated category which can now form
the basis for an expanded feasibility study. (www.desertsunmining.com).

Statements in this release that are not historical facts are
"forward-looking statements" within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. Readers are cautioned that any
such statements are not guarantees of future performance and that actual
developments or results may vary materially from those in these
"forward-looking statements".

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Desert Sun Mining Corp.
    John Carlesso
    (416) 861-5881 or 1-866-477-0077
    or
    Desert Sun Mining Corp.
    Kam Gill
    (416) 861-0341 or 1-866-477-0077