CanAustra Resources Inc.

March 21, 2005 04:36 ET

CanAustra Resources Inc.: South Korea-Field Season Planning Nearing Completion


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CANAUSTRA RESOURCES INC.

TSX VENTURE SYMBOL: CTA

MARCH 21, 2005 - 04:36 ET

CanAustra Resources Inc.: South Korea-Field Season
Planning Nearing Completion

CALGARY, ALBERTA--(CCNMatthews - March 21, 2005) - CanAustra Resources
Inc. ("the Company") (TSX VENTURE:CTA) is pleased to make the following
announcement:

GEODO PROJECT FIELD SEASON PLANNING NEARING COMPLETION

Detailed planning is currently being finalised to support the Geodo
Project field exploration activity which is due to commence in mid to
late April 2005, local weather conditions permitting. The program will
consist of systematic surface exploration across the known skarn outcrop
including detailed soil sampling, to delineate the zones with known
anomalous gold - copper - silver and to identify new zones, and a
detailed review of past data. This work will be followed by drill
testing of anomalous zones to determine the width & grade of the
identified system with additional drilling, as required, to establish
size constraints.

Field work will be overseen by Mark Dugmore, the Company's VP of
Exploration, and conducted to standards compliant with 43-101 reporting.
He will be continuing a regional review program.

ALBURY HEATH TRIBUTE UPDATE

Work under the Tribute arrangements announced on December 14, 2004 are
proceeding, and the Tribute party has commenced mine planning to work,
and mine, gold-bearing ores in the Tenements to a vertical depth below
surface of 50 meters whereby CTA will be entitled to receive 25% of gold
production. Below 50 meters vertical depth and subject to agreement of
the parties to mine at depth, CTA will be entitled to receive 75% of
gold production (with each party contributing to costs in relation
thereto in proportion to equity).

On behalf of CanAustra Resources Inc

Malcolm L Stevens, Chairman and President

Statements in this press release other than purely historical
information, including statements relating to the Company's future plans
and objectives or expected results, constitute forward-looking
statements. Forward-looking statements are based on numerous assumptions
and are subject to all of the risks and uncertainties inherent in the
Company's business, including risks inherent in mineral exploration and
development. As a result, actual results may vary materially from those
described in the forward-looking statements. CanAustra Resources Inc.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    CanAustra Resources Inc.
    Malcolm L Stevens
    +612 9247 5355
    +612 9247 5344 (FAX)
    mls@canaustra.com.au
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.