Cash Minerals Ltd.

Cash Minerals Ltd.

June 06, 2008 09:01 ET

Cash Minerals Announces Review of Division Mountain Coal Property to Maximize Economic Potential

TORONTO, ONTARIO--(Marketwire - June 6, 2008) - Cash Minerals Ltd. (TSX VENTURE:CHX) today announced that it has initiated a strategic review to reassess the economic potential of the Company's Division Mountain coal property, located approximately 90 km northwest of Whitehorse, Yukon Territory. The Division Mountain property contains a measured resource of 52.5 million tonnes of high volatile "B" bituminous thermal coal (refer to NI 43-101 report dated December 21, 2005).

"The aim of Cash Minerals' strategic repositioning plan is to assess all of the Company's projects to determine which assets would provide a greater return to shareholders," commented Greg Duras, President and CEO of Cash Minerals Ltd. "Given the renewed interest in coal over the past few quarters, management has decided to review the economic potential of Cash Minerals' Division Mountain coal property. This will be the first step in our plan to maximize shareholder value."

Work on the Division Mountain property over the next quarter will include: upgrading the feasibility study to determine the potential for export coal, given current coal prices; and revising the feasibility study for the potential of a Division Mountain coal mine to provide feedstock to a proposed mine-mouth power station (to be located adjacent to the property). An exploration program will also be designed to determine the potential for metallurgical coal on the property and to upgrade and expand the existing resource.

The management team is also evaluating coal projects outside the Yukon, in an effort to expand the Company's portfolio of coal assts. Cash Minerals has been in the process of identifying and evaluating opportunities to participate in additional coal properties. Cash Minerals is involved in discussions with various government officials to monetize their positions in coal assets and take advantage of the growing demand for energy-related resources. Cash Minerals has expressed an interest in purchasing a significant interest in various coal projects.

Division Mountain Property

The Division Mountain property is 100% owned by Cash Minerals and is comprised of five coal leases covering 7.764 square kilometres and 30 territorial coal exploration licenses covering 3,600 square kilometres.

An independent feasibility study on a potential Division Mountain coal mine was completed in 2006. The mine feasibility study was completed by Norwest Corporation, a North American coal and energy engineering consultancy firm based in Salt Lake City, Utah. Cash Minerals intends to engage Norwest to update the feasibility study to reflect current improved market conditions and opportunities.

In conjunction with the Division Mountain mine feasibility study, Cash Minerals also commissioned an independent preliminary pre-feasibility study on the potential mine-mouth coal-fired electricity generating plant located adjacent to the mine. The study estimates an operating cost of 12.2 cents per kWh (2006 cost basis). This cost compares with Yukon Energy's 2005 Residential rate of 13.74 cents per kWh and 2005 General Service rate of 15.39 cents per kWh, which were reported in Yukon Energy's 2005 Annual Report.

About Cash Minerals

Cash Minerals is a Canadian-based energy company focused on uranium and coal exploration. Under an agreement with joint venture partner Mega Uranium Ltd., Cash Minerals can maintain a 75% working interest in the highly prospective Igor property, located in the Wernecke Uranium District, Yukon, by completing a bankable feasibility study on the Igor property by December 31, 2012. Wernecke Uranium properties include numerous iron-oxide copper-gold-uranium (IOCG-U) and structurally-controlled hydrothermal uranium targets. The Company also holds a measured resource of 52.5 million tonnes of high Volatile "B" Bituminous coal (refer to NI 43-101 report dated December 21, 2005). This resource is located on a portion of the Division Mountain property, in the Yukon.

T.C. Becker, B.Sc., P.Geo of Norwest Corporation, who is a qualified person under National Instrument 43-101, has reviewed the scientific and technical information concerning the resource estimate cited in this news release.

Forward-Looking Statement

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the feasibility and mineralization at Division Mountain; future financial or operating performance of the Company and its projects; statements regarding exploration prospects; statements regarding acquisition opportunities; the identification of mineral reserves and resources; requirements for additional capital; environmental risks; title disputes or claims; and regulatory matters. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of mineral prices; risks inherent in the mining industry; and, delays in obtaining governmental approvals or required financing or in the completion of activities. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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