Cash Minerals Ltd.

Cash Minerals Ltd.

January 10, 2006 11:47 ET

Cash Minerals Reviews Highlights of 2005 and Announces Exploration Plans for 2006

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 10, 2006) - Cash Minerals Ltd. (TSX VENTURE:CHX) today released a review of its 2005 activities and announced its 2006 plans for further developing its coal and uranium projects.

"Cash Minerals is well financed with over $10 million in the treasury and is in the planning stage to set an aggressive drill program in 2006 on our very exciting uranium targets where we have budgeted approximately $4.5 million. Further drilling should commence in February to further expand our coal resources," said Basil Botha, President and CEO of Cash Minerals Ltd.

In 2005, Cash Minerals continued executing on its vision to become an energy resource company, with activities primarily focused on the development of the significant base of coal and uranium assets in Yukon. Cash Minerals will continue to develop its coal and uranium assets in 2006, with a particular emphasis on additional exploration to further define reserves. Another key initiative is to commence the permitting process for Division Mountain.

Basil Botha further stated, "Management is very pleased with the progress made in 2005 with respect to defining our coal and uranium resources. Our resource position has been significantly improved, providing an excellent foundation for further developing the projects in 2006. With the projected worldwide increase in energy requirements, and the corresponding demand for fuels, the fundamentals pertaining to coal and uranium are very positive. Yukon's mineral resources have attracted interest from a number of other companies. It is Management's opinion that the high quality uranium, coal and other resources in Yukon are largely untapped, and the opportunity exists for significant positive development. With the significant development potential of our uranium and coal properties, Cash Minerals is well positioned to capitalise on projected future demand."

Highlights of the Company's 2005 activities, together with 2006 development plans include:

Uranium Projects

- In 2005, uranium exploration in Yukon produced some very encouraging results. The 2005 program focused on the Wernecke area, which consists of 5 properties situated approximately 200 km east of Dawson City, Yukon. Four of these properties (Igor, Steel, Bond and Dolores, a recently acquired property) have similar characteristics to the well-known Olympic Dam deposit in Australia. The fifth Wernecke property (Lumina) exhibits characteristics of unconformity, related, high-grade, vein-and-fracture-controlled Uranium mineralization. Two other Yukon properties (Alle and Pedlar) are hosted in cretaceous granitic intrusions modeled on the Rossing Deposit in Southern Africa.

- The drilling program at the Igor, Bond and Steel Properties in the Wernecke Mountains of Yukon Territory is now complete. A total of 17 inclined diamond drill holes, comprising 2425 metres, were completed at these three prospects. Seven of the holes were drilled at Igor, another seven were drilled at Bond and three holes were drilled at Steel. The 2005 drill program was conducted by Archer, Cathro & Associates (1981) Limited under supervision by William A. Wengzynowski, P.Eng., who is a qualified person as defined by NI 43-101.

- Highlights from the 2005 Igor exploration program include a 74.44 metre drillhole intersection which averaged 1.88% copper and 1.4 lb/ton U(3)O(8) from an iron oxide-copper-gold (IOCG) breccia (includes 14.5 m of 4.79% Cu and 4.3 lb/ton U(3)O(8), and 12.43 m of 4.79% Cu and 3.84 lb/ton U(3)O(8)).

- In addition to the previously reported exploration results at Igor, Cash Minerals is pleased to announce encouraging assay results for the remaining four holes drilled on the property in 2005. Results for the remaining four holes are reported in Table 1, below. The holes exhibit encouraging intervals of copper enriched breccia throughout. Hole I05-3 intersected 1.26% copper and 2.82 lb/ton uranium oxide across 7.47 metres including 1.46 m of 1.86% copper and 12.00 lb/ton uranium oxide. Hole I05-5, located approximately 130 metres north of I05-3, returned promising copper grades of 1.30% over 6.6 metres.

Table 1: 2005 Remaining Drill Results - Igor
Hole From (m) To (m) Interval (m) (lb/t) Cu (%)
I05-3 53.23 60.70 7.47 2.82 1.26
Including 53.23 54.69 1.46 12.00 1.86
and 79.00 90.50 11.50 Nil 0.33
I05-5 48.54 55.14 6.60 Nil 1.30
and 74.05 80.92 6.87 Nil 0.88
and 143.40 144.78 1.38 Nil 2.01
I05-6 60.00 78.27 18.27 Nil 0.61
I05-7 56.00 60.00 4.00 Nil 0.68
and 66.20 84.50 18.30 Nil 0.42

- At Lumina, an extensive field of uranium-rich boulders was discovered through surface exploration. This occurrence, named the Jack Flash showing, had an average of 28.8 lb/ton U(3)O(8) and ranged up to 153.4 lb/ton U(3)O(8).

- The Ram showing, another discovery within Lumina, is also a promising find. The November 2005 drill program at the Lumina property targeted the Ram showing. Due to severe winter weather, the project was terminated because of cost efficiency and safety concerns. The camp and drill remain on site for an early spring start up, once weather and snow conditions permit.

- Jack Flash and Ram were identified as priority targets for future drilling.

- Following the positive results from the 2005 exploration program, additional airborne magnetic surveys and staking programs were conducted to increase the Company's land holdings in the Wernecke area. Thirty-nine additional claims were staked surrounding the Igor property. (Refer to news releases of September 7th, 2005 and September 21st, 2005). The size of the Lumina property was also increased through the staking of a further 118 claims, which increased the total claims held to 129. (Refer to news release of October 12th, 2005). The claim area of the Igor property has been increased from approximately 1 square km to approximately 24 square km and the claim area of the Lumina property has been increased from approximately 2 square km to approximately 40 square km.

- With the encouraging assay results achieved in 2005, Cash Minerals is currently working on an aggressive drill program for 2006 at both the Igor and Lumina properties. In February, an exploration planning meeting will be held to determine detailed plans for the Company's uranium properties. Key individuals who will be in attendance include Mr. Suraj Ahuja (Advisor), Mr. Andrew Rickaby (Director), Mr. Doug Eaton (Geologist & Director, Archer, Cathro & Associates (1981) Limited), Mr. Basil Botha (President & CEO), and Mr. Peter Arendt (Vice President Engineering & Marketing).

- The 2006 uranium exploration program will include at least 6,000 meters of diamond drilling, airborne magnetic surveys and additional staking of claims to expand the Company's uranium holdings in Yukon. An objective of future exploration is to develop a full geological model for the deposit which will quantify the resource and provide the basis for developing preliminary plans for developing the property.

- Spending on 2006 uranium exploration in Yukon is anticipated to be about $4.5 million.

- Cash Minerals is on target to earn up to a 75% interest in 7 uranium properties in Yukon under an option agreement with Twenty-Seven Capital Corp.

- In addition to the development of uranium projects in Yukon, in 2005 Cash Minerals had the option to acquire the Rupert River Uranium Property in the James Bay Territory of Quebec. The Company has performed due diligence on this property, and has decided not to proceed with the acquisition.

Division Mountain Coal Project

- The 2005 infill drill program confirmed a resource of 52.5 million tonnes of High Volatile "B" Bituminous coal entirely in the measured category. (Refer to for Updated NI 43-101 Report dated December 21, 2005 by qualified person under National Instrument 43-101, T.C. Becker, B.Sc., P.Geo. of Norwest Corporation). The previous NI 43-101 Report dated March 9, 2005 (also by T.C. Becker) had confirmed a total resource of 51.6 million tonnes, comprised of 38.6 million tonnes of measured and 13.0 million tonnes of indicated resources.

- With respect to the results obtained from the 2005 Division Mountain infill drill program, the Updated NI 43-101 Report notes, "The 2005 drilling was successful in providing a greater level of confidence in the seam correlations and in the geological model. With this additional information it was possible to move all resource blocks into the measured category. The drilling also provided large diameter drill core that was used for geotechnical studies to aid in open pit design."

- The "Division Mountain Scoping Study" by Norwest Corporation, dated April 13, 2005, supported the potential for the economic development of an open pit mine based on the annual production of approximately 1.375 million tonnes of saleable coal. According to the study, approximately 900,000 tonnes of Bituminous "B" coal on an annual basis could be available for sale to the thermal market within the Pacific Rim, 300,000 tonnes could be offered for Pulverized Coal Injection (PCI) and 175,000 tonnes could be available for sale for a proposed mine mouth 40 MW generating market located on or near the property. Norwest Corporation developed preliminary mine plans and a mining cost estimate for a 22-year open pit mine life.

- The Yukon Government appointed Jesse Duke, an environmental and permitting expert, as project coordinator for its Division Mountain coal project. His primary role will be to accelerate and streamline the permitting for the Division Mountain Coal Project.

- On June 27, 2005 it was announced that Cash Minerals and Alaska Industrial Development and Export Authority (AIDEA) are negotiating the utilization of Skagway Ore Terminal for the shipping of Division Mountain coal. Subsequently, Cash Minerals engaged Sandwell Engineering Inc. to conduct a detailed review of the Terminal. According to the review by Mr. Bill Wong, P. Eng., the existing terminal at Skagway can be modified to receive, store, reclaim and load coal into ocean-going bulk carriers. Modifications would include additional coal storage space and upgrading of the reclaiming and shiploading capabilities. Sandwell estimates that for a capital cost to the owner of C$9.4 million, the terminal can be upgraded to load Panamax-size vessels at a rate of 1,500 tonnes per hour.

- On July 14, 2005, it was announced that a Letter of Understanding ("LOU") was concluded with Champagne and Aishihik First Nations ("CAFN"), who have overlapping rights on Division Mountain. Following the execution of the LOU, geological mapping was conducted on CAFN lands north of and adjacent to Division Mountain. Data from this work is being evaluated, and will be presented to CAFN when completed. CAFN and Cash Minerals will continue working together to move the Division Mountain Coal project towards production. Development work in 2006 will possibly include exploration drilling on CAFN land.

- Cash Minerals was approached by a number of companies and delegations that expressed interest in marketing Division Mountain coal and/or taking up an equity position with the Company. Discussions with these parties will continue in 2006.

- Division Mountain's coal resource currently occupies only 5% of Cash Mineral's coal properties in the area. In addition to Division Mountain, Cash Minerals holds other Coal Exploration Licences in the Braeburn to Carmacks areas which total 360,000 hectares, as well as an anthracite deposit in southern Yukon. In 2006, $736,000 is budgeted on further coal exploration of the Braeburn to Carmacks areas, with a view to expanding the Company's coal resources. Initial geological mapping and previous drilling and trenching indicate that coal of similar or better quality to Division Mountain may be present in one or more of the target areas.

- Other work planned for Cash Minerals' coal projects in 2006 include:

- Completion of the Division Mountain feasibility study, to be
released in early 2006.
- Begin the permitting the process on the Division Mountain coal
- Continue the dialogue with AIDEA to finalize agreement for the use
of Skagway Ore Terminal.
- Coal market development.
- Evaluation of the anthracite deposit in southern Yukon.
- Evaluation of limestone deposit to the east of Division Mountain.

Clean Coal Technologies

- As announced in the news release of December 7, 2005, Cash Minerals is also evaluating coal liquefication projects. One project pertains to the production of clean-burning liquid transportation fuels using Fischer-Tropsch technology. Cash Minerals has commissioned a conceptual study to develop information on the viability of the coal to Fischer-Tropsch liquids at plant capacities of approximately 12,000 and 50,000 barrels per day. The second project is a potential coal to methanol project in Inner Mongolia in which the company could become a partner.

- Associated with the Cash Mineral's coal resources, opportunities may also exist for the recovery of Coal Bed Methane ("CBM"). The Company had preliminary discussions on CBM with the Government of Yukon in 2005, and plans to continue this dialogue in 2006.

Key Appointments in 2005

- One of the prime objectives is to continue to build a team of experienced professionals and position Cash Minerals as an emerging energy company. In 2005, there were several key additions to the management of the Company. Going forward, Cash Minerals' key personnel include the following.

- William (Bill) Clarke - Chairman

Previously President & CEO, Mr. Clarke served in Canada's foreign service for 34 years. Positions held included Canadian Ambassador to Brazil and to Sweden and the Baltic Republics, and Chief Trade Commissioner.

- Basil Botha - President & CEO, Director

Previously Vice President Business Development, Mr. Botha has over 20 years international experience in coal mine development and marketing. In addition to his appointment as President & CEO, Mr. Botha was also appointed to Cash Minerals' Board of Directors in 2005.

- Deborah Battiston - Chief Financial Officer, Director

Ms. Battison is a C.G.A. with over 20 years of accounting and financial management experience. She has broad international experience, having dealt with companies in over eight countries and having lived and worked in Japan for several years.

- Stan Bharti - Director

Mr. Bharti has over 25 years of domestic and international experience in mine engineering, operations management and finance.

- Bruce Humphrey - Director

Mr. Humphrey is the President of Desert Sun Mining Ltd. and former Senior Vice-President and COO of Goldcorp Inc. He also has significant coal operations experience.

- Andy Rickaby, P.Eng. - Director

Mr. Rickaby has over 40 years of mine operations and management experience, including extensive experience in the evaluation of uranium mines.

- Peter Rowlandson - Director

Mr. Rowlandson is a professional engineer with extensive experience in the mining industry. He has held a number of senior engineering and management postings throughout his 34-year career with large mining organizations.

- Suraj Ahuja - Uranium Consultant and Special Advisor to the Board

Mr. Ahuja is a recognized uranium geologist with over 35 years of exploration and management experience in North America, with first-hand knowledge of all major Canadian uranium deposits.

- Peter Arendt - Vice President Engineering & Marketing

Mr. Arendt has over 20 years of experience in mine operations, engineering and coal marketing.

- Donna Mercier - Communications Specialist

President of Mercier Solutions, Ms. Mercier has 15 years experience in public relations, communication and marketing, primarily in Yukon.

- CHF Investor Relations

CHF Investor Relations, of Toronto and Calgary, was retained as the Company's investor relations counsel in August 2005. For more than 40 years, CHF has represented public companies listed on the TSX and TSX Venture exchanges, making it Canada's longest established IR company.


- Additional funds were raised in July and December via private placement financing.

- Cash Minerals is well funded with no debt, with $10.1 million in the treasury at January 1, 2006.

About Cash Minerals Ltd.

Cash Minerals Ltd. ( is an emerging energy resource company listed on the TSX Venture Exchange under the symbol "CHX" and has approximately 60.0 million shares outstanding. Current activities are primarily focused on the development of its significant base of coal and uranium assets in Yukon.

The Division Mountain Coal Project's five Coal leases measure 776.4 hectares and the 30 Territorial Coal Exploration licenses cover some 360,000 hectares in coal-bearing stratigraphy. The Updated NI 43-101 Report dated December 21, 2005 by qualified person under National Instrument 43-101 T. C. Becker, B.Sc., P.Geo. of Norwest Group (filed with SEDAR on January 10, 2006) confirmed coal resources of 52.5 million tonnes entirely in the Measured category and a feasibility study is nearing completion.

Cash Minerals' Uranium exploration projects boast major stakes in seven quality projects all of which were previously drilled. Four resemble an Olympic Dam-type project, two are modeled after the prolific Rossing Deposit in South Africa and one is testing possible unconformity-related, high grade, vein-and-fracture-controlled uranium mineralization.

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