Cash Minerals Ltd.

Cash Minerals Ltd.
Dynamite Resources Ltd.

Dynamite Resources Ltd.

March 12, 2009 08:30 ET

Cash Minerals and Dynamite Resources Announce Purchase and Sale of the Mike Lake Property and Kyrgyz Properties

TORONTO, ONTARIO--(Marketwire - March 12, 2009) -


Cash Minerals Ltd. ("Cash Minerals") (TSX VENTURE:CHX) and Dynamite Resources Ltd. ("Dynamite") (TSX VENTURE:DNR) today announced that it has entered into a letter agreement (the "Letter Agreement") with Dynamite Resources Ltd. to acquire a 100% interest in the Mike Lake property located in Yukon Territory and an indirect 100% interest in the Kokomeren, Barskaun, Arabelsu and Moldatau properties located in the Kyrgyz Republic (the "Acqusition").

The Mike Lake property consists of 319 mining claims covering an area of approximately 68 square kilometres located in the Tintina Gold Belt, Yukon Territory (the "Mike Lake Property"). The Kokomeren, Barskaun, Arabeslsu and Moldatu properties (collectively the "Kyrgyz Properties") represent four mineral licences located in the Kyrgyz Republic. The Kyrgyz Properties are indirectly held by a wholly-owned subsidiary of Dynamite, Tau Mining Limited (UK) ("Tau Mining").

Pursuant to the terms of the Letter Agreement, Cash Minerals will acquire the Mike Lake Property and all of the issued and outstanding common shares of Tau Mining and in consideration thereof shall issue 22,750,000 common shares of Cash Minerals (the "Cash Shares") and 11,375,000 Cash Minerals share purchase warrants (each a "Warrant") to Dynamite. Each Warrant shall entitle the holder thereof to acquire one Cash Share at a price of $0.10 for a period of 24 months, subject to the receipt of all necessary regulatory approvals. Pursuant to the terms of the Letter Agreement, the parties shall enter into a definitive agreement with respect to the Acquisition.

President and Chief Executive Officer of Cash Minerals, Mr. Greg Duras commented, "We believe this an excellent opportunity for Cash Minerals to acquire additional prospective properties and most notably to expand our current interests in the Yukon."

David Argyle, the President and Chief Executive Officer of Dynamite, stated, "We have agreed to sell these properties in the context of our business combination with Avion Resources and our focus on commencing production at the Segala gold mine in Mali. To provide our shareholders with continued exposure to the exploration potential of the Mike Lake Property and the Krygyz Properties, we intend to distribute the Cash Minerals securities to be obtained on the sale of these properties to our current shareholders on a pro rata basis as part of the plan of arrangement with Avion Resources."

The Acquisition is a Non-Arm's Length Transaction for the purposes of the TSX Venture Exchange as Cash Minerals and Dynamite have a common director, Stan Bharti, and a common officer, Patrick Gleeson, who is the Corporate Secretary of both companies. Due to the non-arm's length nature of the Acquisition, Cash Minerals formed a special committee of independent directors (the "Special Committee") to review and, if considered appropriate, approve the entering into of the Letter Agreement. On March 6, 2009, the Special Committee unanimously approved the entering into of the Letter Agreement.

About Cash Minerals

Cash Minerals is a Canadian-based energy company focused on uranium and coal exploration.

About Dynamite Resources

Dynamite Resources is a Canadian mineral exploration and development company that holds property interests in Yukon Territory, Mali and Krygyz Republic. The Mike Lake gold-copper project is located in the prospective Tintina Gold Belt, Yukon and is situated 25 km north of the former Brewery Creek gold mine and 70 km northeast of the Klondike Goldfields. Dynamite Resources also holds a 50% interest in the Segala gold project in Mali, which is expected to commence production in 2009 at an annualized rate of 56,000 ounces of gold per year.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Completion of the Acquisition is subject to a number of conditions, including TSX Venture Exchange acceptance.

Forward-Looking Statement

Cautionary Note Regarding Forward-Looking Information - 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 future financial or operating performance of the Company and Tau Mining and its projects, the Mike Lake Property, Tau Mining and its projects, the terms and conditions of the proposed Acquisition, statements regarding synergies and financial impact of the proposed Acquisition, exploration prospects, requirements for additional capital and regulatory approvals. 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, level of activity, performance or achievements of the Company 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; competition; future prices of mineral prices; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of 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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