Cline Mining Corporation

Cline Mining Corporation
Strike Minerals Inc.

Strike Minerals Inc.

December 14, 2006 08:30 ET

Cline Mining-Strike Minerals Gold Joint Venture

SUDBURY, ONTARIO--(CCNMatthews - Dec. 14, 2006) - Cline Mining Corporation ("Cline") (TSX:CMK) is pleased to announce that it has signed an agreement with Strike Minerals Inc. ("Strike") with respect to a joint venture program for the exploration and development of the Edwards Gold Property owned by Strike and located in Jacobson Township, north-east of Wawa, Ontario. In addition, Cline and Strike have agreed on a share swap whereby Cline will issue 500,000 treasury common shares of Cline in exchange for 2,000,000 treasury common shares of Strike. The joint venture arrangements and the share exchange contemplated by the agreement are subject to the approval of the Boards of Directors of both companies and any necessary regulatory approvals.

Joint Venture

The Agreement provides that Cline can earn up to a 12.5% joint venture interest in the Strike Edwards Property and related assets by expending up to $350,000 on a diamond drilling exploration program on the property. The Edwards Gold Property covers an area of approximately 60 hectares (150 acres) and is contiguous to the Cline Lake Gold Property owned by Cline. Both Cline and Strike will be represented on a joint venture Management Committee.

The Edwards exploration program, to be managed and carried out by Cline, comprises the drilling of five diamond drill holes to vertical intercept depths of about 500 meters (1600 feet). This program is intended to test beneath the Porphyry and Carbonate Zones developed and mined by River Gold Mines in the late 1990's that saw production of approximately 144,000 ounces of gold from 450,000 tons.

In addition, the above described 5 hole drill program is also designed to cover previously discovered shallow gold structures - New North 1 and 2 located up dip and east of the Strike/Edwards Porphyry and Carbonate zones.

The Edwards drilling program is planned to be carried out concurrently and in conjunction with the three section, nine hole, deep diamond drilling program being carried out by Cline on its contiguous Cline Lake Gold Property, as reported in a news release dated October 17, 2006 and as more fully described later in this news release.

Cline believes that there are significant synergies in the arrangements between Cline and Strike with respect to the exploration and development of the Cline Lake and Edwards Gold Properties. The Cline and Strike gold properties are adjacent and contiguous east to west covering areas of approximately 120 hectares (300 acres) and 60 hectares (150 acres) respectively. In addition, both properties are previous gold producers and include 6 existing mine shafts/portal.

Based on information published in the Canadian Mines Handbook, historical production from the Cline Lake Gold Property between 1936 -1942 and 1947-48 was 332,670 tons with an average recovered grade of 0.215 opt Au.

Cline-Strike Share Exchange.

The agreement also provides for the issuance by Cline of 500,000 common shares from treasury in exchange for 2,000,000 common shares of Strike from treasury. Strike presently has 21,994,659 issued common shares.

Cline Lake Exploration Program.

Cline also announces that it is proceeding with the deep diamond drilling program on its Cline Lake Gold Property. The drill program proposes 3000 metres of diamond drilling for a total of up to 9 diamond drill holes in three sections, 3 holes per section, to varying depths of up to 2,000 feet on the previously untested Cline-Edwards Shear footwall. Cline believes that these nine diamond drill holes are strategically located with respect to the five holes that Cline will now drill on its Edwards diamond drill program under its new Joint Venture with Strike.

Mr. Dale M. Hendrick P.Eng., a Director of Cline, and a Qualified Person for the purpose of National Instrument 43 101, had previously recommended the initial deep diamond drilling Program on the Cline Lake Gold Property and has subsequently recommended the additional strategic and complementary drilling Program on the contiguous Edwards gold Property. Mr. Hendrick reports that both the adjoining Cline Lake Gold and the Edwards Gold Properties are crossed in an east-north-east direction (Az 75-80 degrees) by the major regional fault system known as the Goudreau Lochalsh Deformation defining a significant gold belt between the towns Goudreau and Renabie. Locally, the fault is identified as the Edwards-Cline Shear that strikes N 80 degrees; it dips 65-70 degrees north and is located in the lower part of the both the Cline and Strike Properties just south of Cline's deepest shaft (1165 ft.).

A full detailed analysis and report of Mr. Hendrick with respect to the deep drilling programs is set out in the Cline news release dated October 17, 2006.

Cline Mining Corporation is a mine development company focused on the exploration and development of metallurgical coal in Canada for the international seaborne coal trade market, uranium and iron-ore in Madagascar and gold in Canada. The Company website is at


Ken Bates, President and Chief Executive Officer

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