Amanta Resources Ltd.

Amanta Resources Ltd.

June 08, 2006 12:56 ET

Amanta Resources Ltd. Acquires Mae Lama Tungsten Mine in Thailand

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 8, 2006) - Amanta Resources Ltd. (the "Company") (TSX VENTURE:AMH) is pleased to announce that it has reached an agreement with the owners of the Mae Lama tungsten mine, formerly one of Thailand's significant tungsten producers, whereby the Company acquires 100% of the mining and development rights over the Mae Lama mining claims in return for a net smelter royalty of 2% and staged cash payments in Thai Baht totaling approximately CAD150,000, with an additional payment of approximately CAD150,000 payable only if the Company takes a positive production decision.

The Mae Lama mine is located in western Thailand near the border with the Union of Myanmar and approximately 350 km northwest of Bangkok. During the 1970s the mine was an important producer of wolframite and scheelite, producing several hundred tons of high grade concentrates per year. This production came from one major vein several meters thick, exposed over close to 500 meters and extending over 150 meters in depth. This main vein was mineralized with wolframite and scheelite and associated tin and copper minerals. The tungsten ore grade in the vein was reported to range up to 10% with wolframite the main ore mineral. As with other tungsten producers of the 1970-1980 period, mining at Mae Lama was limited to the production of high grade material. The mine stopped production in the early 1980s due to market conditions. No systematic exploration for additional resources beyond the main vein was ever done.

Amanta has agreed to make the following payments: An initial payment of Baht 2,500,000 upon signing a formal agreement followed by a second payment of Baht 2,500,000 upon renewal of the mining licences over the deposit and the transfer of the licences to Amanta. A third payment of 5 million Baht will be paid if and when the Company concludes a positive feasibility study and decides to re-open the mine. (The present exchange rate is 1 C$ equals 34 Thai Baht).

With the exception of the initial payment, the agreement is conditional on the government approval of the renewal of the Mae Lama mining licences, for which the owners applied in October 2005. The owners expect the approvals by year end 2006.

Mae Lama is one of a number of deposits and occurrences grouped around and closely associated with a large, late Cretaceous, granite-adamellite stock. In addition to mineralized hydrothermal quartz veins and pegmatites, such as the main Mae Lama vein, tungsten mineralization is known to occur in stockworks of smaller veinlets and disseminated in the adamellite stock. The Company has drawn up a three phase exploration and evaluation program to evaluate the different styles of tungsten mineralization and complete a prefeasibility study in a timeframe of 3 years.

With the Mae Lama acquisition the Company increases it's presence in the tungsten mining industry in Thailand. The company's objective is to consolidate several of the former tungsten producers in northern Thailand, gain a dominant industry position and to reposition Thailand as an important tungsten producer.

Geological Information contained within this report has been verified by Pieter Bakker (Director, Executive VP - Amanta Resources Ltd.). Mr. Bakker satisfies the requirements of a Qualified Person as defined in the National Instrument 43-101 (Standards of Disclosure for Mineral Projects).

Amanta Resources Ltd. is focused on mineral exploration, development and production in Thailand and the Southeast Asian region. The Company concentrates on the systematic evaluation of known mineral occurrences, rather than "greenfields" exploration, creating early opportunities to finance and develop mines.


Gerald D. Wright, President

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