Consolidated Thompson-Lundmark Gold Mines Limited
TSX VENTURE : CLM

Consolidated Thompson-Lundmark Gold Mines Limited

April 12, 2006 09:25 ET

Consolidated Thompson Announces Termination of Joint Venture with Prosperity TCMA Mining Ltd and Retains 100% Interest in the Bloom Lake Iron Ore Property

TORONTO, ONTARIO--(CCNMatthews - April 12, 2006) - Consolidated Thompson-Lundmark Gold Mines Limited (TSX VENTURE:CLM) ("CLM" or "the Company") would like to report that it did not finalize the terms of a definitive agreement with Prosperity TCMA Mining Ltd. on the Bloom Lake property and as the conditions of the Provisional Agreement were not fulfilled and CLM decided not to extend the time for those conditions to be met, the joint venture between the companies has been terminated.

With the value and reality of the Bloom Lake project, the favorable iron ore market conditions and the quality and size of the deposit, the Company feels that moving forward with 100% ownership in the property, as opposed to the 49% stipulated in the Provisional Agreement, will be to the best benefit of its shareholders, and will attract major institutional financing in the short term.

The Bloom Lake Iron Ore Property is located in Normanville Township, Duplessis County, Province of Quebec, on the south end of the Labrador Trough, approximately 400 km north of Sept-Iles and 10 km north of the Mount-Wright iron mining operation of Quebec Cartier Mining Company. With a pre-tax internal rate of return of 40.2%, an NPV (at 5% discount rate) of US$ 888 million, and total undiscounted Cash Flow of US $ 1.6 billion using average pricing of US $ 0.59 per iron unit, the Feasibility Study indicates that the Bloom Lake project presents potential for an attractive return to its shareholders.

Consolidated Thompson-Lundmark Gold Mines Ltd. is an exploration and development company. With a positive feasibility study and the quality and size of the Bloom Lake deposit, it reflects the Company's ability to advance the project and other opportunities in the Iron Ore area. The Company has approximately 17.2 million shares outstanding and trades on the TSX Venture Exchange under the symbol (CLM). Any further information can be accessed at the company's website at www.consolidatedthompson.com.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.

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