Excalibur Resources Ltd.
CNSX : XBR
FRANKFURT : X9CN

Excalibur Resources Ltd.

August 17, 2012 06:00 ET

Catanava Receives Explosive Permit

TORONTO, ONTARIO--(Marketwire - Aug. 17, 2012) - Excalibur Resources Ltd. (CNSX:XBR)(FRANKFURT:X9CN) is pleased to announce that its 49% owned subsidiary Minera Catanava S.A. de C.V. ("Catanava") has received the permit for use of explosives from the Mexican military called SEDENA ("Secretary of National Defense"). "As the final permit required to begin operations, this is a major milestone as it allows the company to order and use explosives under the supervision of the military and to open up adits on either side of the arroyo and begin processing higher grade underground material at Camino and San Gil veins, rather than dump material which has been used for plant testing," commented Tim Gallagher, Chairman.

According to our JV partner, Don McLeroy, President of Minera Apolo, S.A. de C.V., who is managing the Catanava operation, "Over the last couple of months of testing we increased processing of dump material from 1-2 hour batches to 8 hour test shifts and now have about 100kg of concentrate ready to be refined. Although the plant is operational, we have experienced some mechanical equipment delays including replacing an electrical starter panel, getting parts for the slurry pump, cone crusher, etc and are still working to increase recuperation on the large Micron Wave Table. From a construction perspective, the last major item is the installation of the roof as the cement support columns have been built so we are now turning our attention to establishing the mine personnel to run the plant and go underground as well as ordering the required equipment."

Excalibur is pursuing the micro-mining approach which is the search for small, near surface ore shoots that can be extracted at a low cost. The Catanava project is in the Pinos Gold District, in the State of Zacatecas, Mexico which was discovered by the Spanish in 1546 and mined until the War of Independence in 1810, by Cornish miners from 1870 to 1911, and most recently by an individual miner from 1935 to 1941. Recent exploration work was undertaken through a Penoles/Bethlehem Steel JV from 1975 to 1983, All-North Resources in 1993-4, Hecla Mining Company 1995-7, and by Romarco Minerals from 2006-7. Minera Catanava S.A. de C.V. is 51% held by Minera Apolo S.A. de C.V. which owns and is providing the land, mineral and mining rights and management of the project, and 49% is held by Excalibur which has provided the financing.

Excalibur Resources Ltd. is a junior exploration mining company focused on the discovery, development and mining of economically viable precious and base metal mineral resources.

On behalf of the Board of Directors:

Tim Gallagher, Chairman

The CNSX has neither approved nor disapproved of the contents of this press release.

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