SOURCE: Cotton & Western Mining, Inc.

April 13, 2007 09:45 ET

Cotton & Western Mining, Inc. Signs Mineral Mining Joint Venture Agreement

RICHMOND, TX -- (MARKET WIRE) -- April 13, 2007 -- Cotton & Western Mining, Inc. (PINKSHEETS: CWRN) -- Robert L. Cotton, President & C.E.O. of Cotton & Western Mining, Inc., announced today that it has executed a formal Iron Mineral Mining Joint Venture Agreement with Quantum International of Houston, Texas, an International Business Firm that supplies Iron Ore and Copper raw materials to the respective industrial sectors. The companies will form a new joint venture company that will operate under the name of "Cotton & Quantum Mineral Ventures, Inc." on a fifty-fifty (50/50%) percent ownership basis with Quantum providing one hundred (100%) percent of the required project funding needs and CWRN providing iron minerals from its selected iron mineral deposits located in the Republic of the Philippines. Quantum's initial investment into the joint venture will be three million five hundred thousand dollars ($3,500,000.00) to open one of CWRN's selected iron mineral deposits and produce up to one hundred thousand (100,000 DMT) Dry Metric Tons of Raw Crude Iron Ore Fines per month for the exclusive market sales of Quantum. Off-take sales and delivery contracts are near completion for the new joint venture that are valued at seventy-six dollars ($76.00) per DMT / CIF China Main Ports. There after, the joint venture shall expand quickly to two hundred thousand (200,000) DMT per month to meet Quantum's expectations of minimum production.

The Joint Venture Company shall have six (6) months from the effective date of agreement to produce the first 100k/dmt shipment. The time frame was agreed upon by the parties to take into consideration the time needed to register the new U.S. joint venture company in the Philippines and file applications as a foreign investment mining company capable of meeting all foreign investment regulations of the Republic of the Philippines; that, together with the time needed to acquire specialized mining equipment, ship it in, and complete all mining preparation infrastructure.

Under the terms and conditions of the joint venture agreement, CWRN shall be responsible for all mining operations, while Quantum shall be responsible for all funding and finished product contract sales.

It has not been decided which one of CWRN's iron mineral deposits will be opened first; consideration was greatly impacted by the production needs of Quantum, loading and shipping capacity of available Philippine ports. It is most probable that one of the Pacific Pearl Iron Mineral Deposits on Luzon will get the start-up as nearby Subic Bay can receive large bulk vessels. It would not be practical to open an iron mineral deposit on one of the small islands at this time. Quantum has committed to funding for the expansion of operations and production on a fast track to meet the market demands.

Affiliate companies named in the joint venture agreement as being intricate to the parties involved are for CWRN, Astrolabe Mining & Development Corporation, Manila, the Philippines and for Quantum, GCQI, S.A. de C.V., (Grupo Comercial Quantum Internacional) Mexico City, Mexico.

In addition, CWRN's Joint Venture Partner, Quantum International, has been involved in international trade and business for some 30 years. Quantum International currently serves as the holding concern for various U.S. and international companies. These companies include Quantum International (Texas), Quantum International MSD, GCQI SA de CV (Grupo Comercial Quantum Internacional Mexico), Armaments International S.A., and other businesses. At the present time, Quantum International has over 30 licensed international representative companies, covering Latin America, Asia, Russia, the Mid East, Africa and (most recently) the Philippines.

Since November of 2006, CWRN has been in constant negotiations with three (3) Chinese steel mills and several traditional financing parties seeking funding and/or Joint Venture Participation to help develop the company's Pacific Pearl Iron Mineral Complexes. Quantum International came in with what management felt would give the company and its shareholders the best financial terms and conditions. Quantum International began its due diligence in mid February and came to the conclusion that CWRN was capable of delivering high grade iron minerals for the groups Iron Trading Division.

Al Johnson, C.E.O. & Director of Operations for Quantum International and Robert L. Cotton, President & C.E.O. for Cotton & Western Mining were the principal signatories to the Joint Venture Agreement. The effective date of the agreement is April 12th, 2007 and expires on April 11th, 2017 with options for renewals in ten (10) year intervals.

For more information on Cotton & Western Mining, Inc. please visit the company website at:

About Cotton & Western Mining, Inc.:

Cotton & Western Mining, Inc. (PINKSHEETS: CWRN) is a U.S. corporation structured to produce and sell iron ore on a global scale. Currently, the Company is engaged in several mining activities that will provide the Asia Pacific Steel Manufacturing Sector with high grade raw crude iron ore products.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Except for historical information, the forward-looking matters discussed in this news release are subject to certain risks and uncertainties which could cause the Company's actual results and financial condition to differ materially from those anticipated by the forward-looking statements including, but not limited to, the Company's liquidity and the ability to obtain financing, the timing of regulatory approvals, uncertainties related to corporate partners or third-parties, product liability, the dependence on third parties for manufacturing and marketing, patent risk, copyright risk, competition, and the early stage of products being marketed or under development, as well as other risks indicated from time to time in the Company's filings with the Securities and Exchange Commission. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

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