Cadillac Mining Corporation

August 29, 2007 06:30 ET

Cadillac Mining Corporation: Santa Maria Polymetallic Prospect Option-West Central, B.C.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 29, 2007) - Cadillac Mining Corporation (TSX VENTURE:CQX) is pleased to announce the execution of an agreement with Bearclaw Capital Corp. ("BCC") to earn a majority interest in the 677-hectare Santa Maria polymetallic prospect located in west-central British Columbia.

The option agreement requires Cadillac Mining Corp. ("CMC") to make a down payment of $10,000, and to expend $450,000 on exploration, and pay BCC 400,000 CMC shares over a three-year period to earn a 60% interest in the property. CMC has the further option to increase its interest in the Santa Maria property to 75% by expending an additional $200,000 and paying a further 100,000 shares in the fourth year of the option, prior to entering into a joint venture relationship with BCC.

The Santa Maria property, located approximately 37 km SSW of Smithers, B.C. hosts structurally controlled Cu-Ag-Au massive to disseminated sulphide mineralization within a series of stacked rhyolite flows/domes extending over a strike length of at least 500 metres. The prospect was discovered in 1916, subsequent to which a 36 meter shaft was sunk and 91 meters of drifting was completed. Reported production in 1917 (B.C. Minfile reference) was 69,400 g Ag and 33,200 kg copper from 217 tonnes of ore.

Modern exploration on the prospect includes mapping, soil sampling, geophysical surveys, trenching and 2290 m of core and percussion drilling in 19 holes. The majority of historical exploration, which was conducted in 1966 and 1970 (Minfile records), focused on drilling along EM conductors and returned significant values ranging to 2.55% Cu and 23 g/t Ag over 6.1 meters. However, drilling at that time was restricted to relatively shallow holes, core recovery is reported to have been very poor, and no gold analyses were performed.

Management is of the opinion that prior exploration has left considerable latitude for further work, particularly with recent advances in modeling of volcanogenic and sub-volcanic deposits. In particular, the similarity in style of mineralization and proximity to the mined out Equity Silver Mines deposits located some 78 km to the east of the Santa Maria is most encouraging.

The Company's initial plans are to rehabilitate a disused access road abandoned some 30+ years ago, to compile a 3-D model of historical activities and to contract a detailed high-resolution airborne mag-EM survey. This work, along with subsequent trenching and focused geochemical surveys, will serve to target diamond drilling in the 2008 field season.

The acquisition of the Santa Maria option is the first step in the diversification of Cadillac Mining Corp.'s activities from its 2006-07 exploration campaigns for gold on or near the Cadillac Break in western Quebec.

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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