Absolut Resources Corp.

Absolut Resources Corp.

July 12, 2005 00:30 ET

Absolut's Step-Out Drilling Hits At Pico Machay

TORONTO, ONTARIO--(CCNMatthews - July 12, 2005) - Absolut Resources Corp. (ABS) (TSX VENTURE:ABS) is pleased to announce further drilling results from its Phase Three reverse circulation drill program completed on the Pico Machay, High Sulphidation Gold Project in Peru. Highlights include ABS-157 intersecting 49.5m @ 1.69 g/t Au and 19.5m @ 1.27 g/t Au and ABS-163 intersecting 70.5m @ 1.17 g/t Au.

ABS-157 is the most westerly hole in the central zone and ABS-163 was a 75m step out to the northeast from ABS-143 (46.5m @ 1.49 g/t Au; see Company press releases dated June 8). The central zone of mineralisation is now over 600m in strike length and open to the west and northeast.

ABS-156 which intersected 18m @ 1.05 g/t Au is located 250m to the northeast of ABS-163 and is further evidence that the mineralisation continues around the contact of the dacite intrusive.

President and CEO Dan Noone comments "We are extremely excited by the results of this latest drilling campaign. Not only have we effectively doubled the known strike length of the main zone, but wildcat drilling on the north and north-eastern extents of the dome have returned significant gold intercepts. Our geologists now have a greater understanding of the controls on mineralisation and our new geological model reflects this. We are now targeting the more than two kilometres of contact zone around the dacite dome as a genuine target to host more of the same."

A preliminary resource calculation will now be undertaken and a fourth round of drilling will be scheduled for the fourth quarter. Exploration of other targets within the 4km by 2km alteration system that is Pico Machay is continuing and updates of this exploration will be released on a regular basis.

For drill hole locations and sections please visit the following link: http://www.absolutresources.com/news/2005/pr_image071205.htm

Drill results, calculated using a 0.3 g/t Au cut-off and up to 1.5m of internal dilution are as follows:

From To Interval Au
Hole No. (meters) (meters) (meters) (ppm) Zone
ABS-156 1.0 5.5 4.5 1.52 North Eastern
14.5 32.5 18.0 1.05

ABS-157 1.0 14.5 13.5 0.44 Central
26.5 46.0 19.5 1.27
53.5 103.0 49.5 1.69
107.5 110.5 3.0 0.34
115.0 124.0 9.0 0.42
130.0 134.5 4.5 0.42
139.0 142.0 3.0 0.43

ABS-163 14.5 85 70.5 1.17 Central

As a reference, the Newmont / Buenaventura Yanacocha high
sulphidation gold mine has an overall grade of 0.96 g/t Au.

Absolut has also received results for wildcat holes ABS 158 - 162 and ABS-164 which targeted geophysical and mercury anomalies to the far west of the main zone and within the dome. These holes returned no significant intersections.

Absolut's wholly owned subsidiary, Minera Calipuy SAC has an agreement with Monterrico Metals PLC to earn up to a 75% interest in the Pico Machay gold project.

Absolut has implemented a quality control program to ensure best practice in chemical sampling and analysis of surface and reverse circulation drilling samples. Analytical services are provided for by ALS Chemex Laboratories in Lima and North Vancouver.

Absolut Resources Corp. is a precious metals exploration and development company based in Toronto, Canada. Absolut believes in an international best practices approach, and implements this on all its social and environmental decisions. The required qualified person for the Pico Machay Gold Project is Mr. Dan Noone, who is a member of the Australian Institute of Geoscientists.

This press release contains forward looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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