Cadillac Mining Corporation

August 02, 2006 18:17 ET

Cadillac Mining Corporation Reports on Project Status

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 2, 2006) - Cadillac Mining Corporation (TSX VENTURE:CQX) wishes to update shareholders on an extensive drilling program currently in progress on its Cadillac West Project in western Quebec. This initial release is restricted to work conducted on claims held under an option to earn 50% from Richmont Mines Inc.

A total of 3716 meters was cored in six holes, completed to satisfy 2005 obligations deferred to May 2006, and to partly meet 2006 exploration requirements on the Norcoeur and Lac Fortune options.

One hole was drilled on the Lac Fortune prospect to explore potential below a previously identified minor non-43-101-compliant resource where a feeder system and deeper parallel shallow-dipping structures are suspected. DDH CM06-01, collared southward at -80deg. about 1.4km north of the north branch of the Cadillac Break, deviated favourably, and was extended to test the 'Break' at depth.

CM06-01 intercepted a number of geologically permissive structures, and numerous veins, shears and alteration zones containing geochemically anomalous to sub-economic gold values. The best analytical results include 0.4m of 49.65 gAu/t at 108m, 0.35m of 13.2 gAu/t at 734m, and 1.4m of 4.16 gAu/t at 1270m. The hole ultimately flattened to 45deg., and was terminated at 1652m where the rods jammed in strongly faulted ground after intersecting 20m of talc-chlorite schist. The last 0.8m interval, comprised of mineralized rubble, assayed 3.15 gAu/t. This structure correlates well with the surface expression of the Cadillac Break. While the hole failed to return ore-grade intercepts, it provides the only continuous geological profile on this segment of the Cadillac Break, and will serve to focus future exploration in the area. The Company is considering down-hole geophysics and may elect to extend the hole by wedging past the problem area.

A previously unknown broad graphitic horizon containing significant semi-massive sulphides was also intersected near the bottom of the hole. While this zone does not locally contain economic values, the structure will be investigated by geophysical methods over the coming months.

In summary, DDH CM06-01 has provided very valuable information on the Cadillac Break, which is the main focus of the Company's exploration initiative.

The Arntfield prospect (within the Norcoeur option) was tested with four holes, CM06-03 through -06, to further investigate a 3.3m intersection carrying18.45 gAu/t in DDH RO-05-04 competed in 2005. The prospective south-dipping structure appears to have been intersected approximately 80m up-dip in CM06-03, but the structure is relatively weak, assaying 5.40 gAu/t over 0.6m. A complete assessment of the data generated will be completed by late September.

One reconnaissance hole, CM06-07, was drilled across the western extension of the Francoeur shear on the Arncoeur prospect (part of the Norcoeur option). Results show a favourable geological environment but no significant analytical values were obtained. Additional work is planned as a follow-up to favourable results reported in drilling conducted in the distant past.

CMC commenced drilling on its wholly-owned claims in mid-June after encountering permitting delays. This work is focusing on targets generated from project-wide geophysical and lithgeochemical surveys conducted in 2004, and consists of deep drill holes that are currently in progress. CMC expects that analytical results from the initial stages of the drilling will be available within one to two weeks and a further report will be issued at that time.

The Cadillac West drilling program is under the direct supervision of Andre J. Audet, P.Eng., Vice-President, Exploration, a Qualified Person under NI 43-101. The BQ core is sawn, and half-core samples are analyzed by standard fire assay with atomic absorption or gravimetric finish at Laboratoire Expert Inc. of Rouyn-Noranda. Duplicate check assays are performed on all samples reporting greater than 1 gAu/t.

Statements contained in this release that are not historical facts may be "forward-looking statements". Such statements are subject to risks and uncertainties and other factors which may cause actual developments or results or level of activity or performance to vary materially from those projected by Management.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release, which has been prepared by Management.

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