Continuum Resources Ltd.

Continuum Resources Ltd.

November 24, 2006 15:41 ET

Continuum and Fortuna Complete Acquisition of San Jose Ag-Au Project, Mexico

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 24, 2006) - Continuum Resources Ltd. (TSX VENTURE:CNU) ("Continuum"). Mr. Greig Hutton, President of Continuum, is pleased to announce that the purchase by Continuum and Fortuna Silver Mines "Fortuna", of a 100% interest in the high grade San Jose silver-gold project in Mexico has closed. A joint venture for the development of the project has now been formed, with the Company having a 24% interest and Fortuna a 76% interest.

The terms of the agreement (which were set out in Contiuum's October 5, 2006 news release) have been revised with respect to the cash portion of the purchase price. The owner of the property has included additional ground to the San Jose Project and accordingly, the cash payment has increased from US$8.0 million to US$9.0 million. Fortuna must also pay the 15% Mexico goods and services tax on the purchase price, which equals US$1.35 million. This tax will be refunded to Fortuna by the Mexican government in due course.

Fortuna also paid to the property owner 168,417 shares of Fortuna and 1,293,750 shares of Continuum which were owned by Fortuna. The Fortuna shares have a hold period expiring on March 11, 2007.

In order to provide part of the cash payment due to the property owner, Fortuna has borrowed CAD$4.6 million pursuant to a credit facility granted by Quest Capital Corp. of Vancouver, BC. The loan is secured by the Peru assets of Fortuna. In consideration for the loan, the Company issued 153,333 shares in its capital stock of Quest Capital Corp. These shares have a hold period until March 22, 2007.

The San Jose Project

San Jose is a high-grade silver-gold project in Oaxaca, Mexico. Fortuna's recent drilling at the project returned a series of Bonanza style high grade intercepts outlining a mineralized shoot that remains open at depth (see Fortuna news release dated September 5th, 2006).

The deposit currently has an inferred resource of 527,283 tons grading 396 grams per tonne (g/t) silver (Ag) and 3.5 g/t gold (Au) (based on 4,845 m of drilling in 15 holes conducted by Continuum) as outlined in the April, 2006 technical report available on SEDAR. Fortuna is currently working on a revision of the resource which will include the results of the most recent drilling and which is expected to be compiled before the end of 2006.

Fortuna completed a total of 11,904m of core drilling in 37 holes using 2 rigs, between January and June of 2006. The program was designed to test the San Jose vein system over 2km strike distance, on 100m sections, to depths of 300 to 400 meters below surface.

The qualified person is Peter Thiersch, MSc, PGeo, as defined by National Instrument 43-101, responsible for the design and management of the San Jose drill program.


Continuum is actively exploring 11 separate gold-silver projects in the state of Oaxaca, including the historically-producing Natividad mine, where Continuum has acquired approximately 35,000 hectares covering the entire Natividad district. Current drill programs and underground mapping are expanding the potential at Natividad. For further information please visit our website at


Greig Hutton, President

The TSX Venture Exchange has not reviewed and does not take responsibility for the adequacy or accuracy of this release.

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