SOURCE: Simba Mines Inc.

January 26, 2006 16:00 ET

SIMBA Returns Common Shares to Treasury for Cancellation

BAY CITY, MI -- (MARKET WIRE) -- January 26, 2006 -- Simba Mines, Inc. (OTC: SBAM) is pleased to announce that the board of directors of Simba Mines, Inc. has authorized the issuance of 22,500,000 shares of Series A Convertible Preferred Stock to Rockbury Properties Ltd in exchange for 135,000,000 shares of common stock of the Company, which were returned to the Company's treasury for cancellation.

The Series A Preferred Stock ("Series A Preferred") is non-interest bearing, does have voting rights and is entitled to receive dividends on parity with the holders of common stock. Each share of Series A Preferred issued can be converted into common stock on a 1:6 basis. Should a liquidation event occur, the Series A Preferred automatically converts into common stock based on the foregoing formula.

The fully diluted capital of Simba will comprise 67,235,000 ordinary shares and 22,500,000 preferred shares. There are no options or warrants. Of the total number of shares on issue there are currently 12,435,000 shares, which are tradable, with the remainder being restricted.

About Simba

Simba has a net 40% interest in the Angolan Cachoeiras copper project free-carried through to completion of full bank feasibility. Work to date has identified a measured resource of 7 million metric tons of copper ore with a grade of 2.14% copper and approximately 50 million metric tons of inferred resource with an inferred grade of 2 - 2.14% copper.

Simba has a net 35% interest in each of the Angolan Benguela and Zenza copper projects situated respectively to the south and north of Cachoeiras. Both are free-carried to completion of full bank feasibility. The two projects contain an extensive area of copper mineralization belonging to the same style as Cachoeiras.

Simba has a net 34.5% interest in the DRC Manga copper cobalt licence covering a mineralized feature over six kilometers long that contains proven copper and cobalt mineralization. Measured and indicated resources are estimated at 59.9 million metric tons with a grade of 2.4% copper (1,437,192 metric tons of copper) and 0.91% cobalt (548,393 metric tons of cobalt).

Forward-Looking Statements

The information contained herein regarding risks and uncertainties, which may differ materially from those set forth in these statements, in addition to the economic, competitive, governmental, technological and other factors, constitutes a "forward-looking statement" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, the Private Securities Litigation Reform Act of 1995. While the Company believes that the assumptions underlying such forward-looking information are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the forward-looking information will prove to be accurate. Accordingly, there may be differences between the actual results and the predicted results, and actual results may be materially higher or lower than those indicated in the forward-looking information contained herein.

Contact Information