Cash Minerals Ltd.
TSX VENTURE : CHX

Cash Minerals Ltd.

December 04, 2006 08:00 ET

Cash Minerals Elects to Move Forward to Earn 75% of Uranium Properties in the Wernecke District, Yukon

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 4, 2006) - Cash Minerals Ltd. (TSX VENTURE:CHX) today announced that under the Yukon Uranium Project ("YUP") agreement, Cash Minerals has earned a 50% interest in YUP. Under the terms of the YUP agreement, Cash Minerals has the right to increase its interest in the Wernecke District uranium properties to 75%. The Company has elected to defer the decision on exercising this right until January 31, 2008; notification of the deferment was made to Cash Minerals' joint venture partner on November 28, 2006.

"Exercising this option will ensure that Cash Minerals obtains the majority interest in the most prospective properties under the Yukon Uranium Project. By deferring the decision on the uranium properties in which to take a 75% interest, Cash Minerals has additional time to make informed decisions based on defined geological models constructed by a highly experienced exploration team," said Mr. Basil Botha, President and Chief Executive Officer. "Cash Minerals has committed a large cash resource for the 2007 exploration program. The program will be fully funded and directed by Cash Minerals, with the primary objective of defining a uranium resource in one or more properties by the end of the 2007 exploration season."

Following the successful private placement financing announced on October 4, 2006, Cash Minerals now has approximately $20,000,000 in the treasury. The Company's primary focus at the present time is to conduct a well-planned, well-managed and results-oriented exploration program in 2007. Key elements of this program include:

- Achieve the objective, which is to define a uranium resource.

- Retain technical expertise. Dr. Geordie Mark (IOCG Specialist), Mr. Suraj Ahuja (Unconformity Expert) and four other highly qualified geologists will develop and direct the exploration program. The large volume of data obtained in 2006 will be utilized to develop preliminary models which will assist in identifying drill targets for 2007.

- Secure the equipment and manpower to carry out the exploration program; five drill rigs and associated infrastructure have already been committed for the 2007 exploration program.

- Apply to permit the Wind River Trail, which would provide winter access to the Wernecke District uranium properties.

"2007 will be another exciting year for Cash Minerals' uranium program. The Company is eager to continue with the expanded drilling program, which we expect will result in Cash Minerals taking a 75% interest in the most prospective properties. This will give the Company the ability to pick up the lion's share of prospective properties, which will result in increased value to our shareholders," continued Mr. Botha. "It is management's opinion that strong potential exists for a major uranium discovery in the Wernecke District. This is supported by the drill results released to date from Igor and Lumina. The Company has placed significant emphasis on assembling a highly technical exploration team, led by Dr. Mark and Mr. Ahuja, who will utilize the most advanced scientific methods available to identify drill targets. With the financing, technical expertise and equipment already secured, the Company is well positioned to achieve its objective of defining a significant uranium resource in 2007."

About Cash Minerals Ltd.

Cash Minerals (www.cashminerals.com) is an emerging publicly listed energy company focused on uranium, coal and alternative fuels (synfuels). Under an agreement with joint venture partner Twenty-Seven Capital Corp., Cash Minerals has the optional right to earn a 75% interest in any of the Wernecke District uranium prospects located in the Yukon. These highly prospective prospects include numerous IOCG, structurally-controlled and unconformity-related uranium targets. In 2006, Cash Minerals conducted an extensive exploration program in the Wernecke District, which included 2,600 of drilling at the Lumina property and 3,000 metres of drilling at the Igor property. Initial drillhole assays for Lumina (Jack Flash Showing) were released on September 6, 2006, with very positive results including an intersection of 55.01 m of 0.103% U3O8, (including 27.01 m of 0.203% U3O8). Assays from Igor in 2005 included an intersection of 14.5 m of 4.79% Cu and 0.215% U3O8. Cash Minerals is awaiting assays for the remaining drillholes from the 2006 exploration program.

The Company is also engaged in exploring and developing coal properties in southwest Yukon Territory. The Division Mountain coal project comprises of five coal leases measuring 776.4 hectares and 30 territorial coal exploration licenses covering some 360,000 hectares in coal-bearing stratigraphy. The Division Mountain NI 43-101 report of December 21, 2005 states a measured resource of 52.5 million tonnes of high Volatile "B" Bituminous coal for the property, which occupies less than five percent of Cash Minerals' total coal leases in the Yukon. On November 15, 2006, the Company announced the findings of the Division Mountain mine feasibility study which found that is technically and economically feasible to develop an open pit mine producing 240,000 tonnes of unwashed coal per year over a 20 year period, with the product being sold to a potential 50 MW (net) mine-mouth power station located adjacent to the Division Mountain property.

Cash Minerals is also pursuing the development of a coal mine in China which would provide feedstock to an adjacent coal-to-liquids (CTL) plant, which would utilize the Fischer-Tropsch process to convert coal into clean-burning fuel.

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