Cumberland Resources Ltd.

Cumberland Resources Ltd.

February 24, 2005 09:01 ET

Cumberland Announces Feasibility Study Results on the Meadowbank Gold Project


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CUMBERLAND RESOURCES LTD.

TSX, AMEX SYMBOL: CLG

FEBRUARY 24, 2005 - 09:01 ET

Cumberland Announces Feasibility Study Results on the
Meadowbank Gold Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 24, 2005) - CUMBERLAND
RESOURCES LTD. (TSX:CLG)(AMEX:CLG) is pleased to announce the results
from the Feasibility Study ("Study") on the Company's 100% owned
Meadowbank Gold Project located in Nunavut, Canada. The Study
incorporates improvements to the mine model as a result of a re-design
completed in 2004 by the Company and the study manager, AMEC Americas
Ltd. ("AMEC"). Construction scheduling and capital cost estimation has
been prepared by Merit International Consultants Inc ("Merit").
Metallurgical and process test work was completed by SGS Lakefield
Research Ltd. Process design was completed by International
Metallurgical and Environmental Inc. and AMEC. Supporting geotechnical
engineering, hydrogeological and geochemical studies were completed by
Golder Associates Ltd. ("Golder"). The Study has been prepared in
accordance with the Standards of Disclosure for Mineral Projects as
defined by National Instrument 43-101 ("NI 43-101").

The most significant improvements are from increased annual production,
changes to open pit scheduling and the addition of a conventional access
road. The 2005 mine design has increased mill throughput by 36% (to
7,500 tonnes per day) while maintaining high gold recoveries. Resulting
gold production is estimated at 316,000 ounces per year over an 8.3 year
mine life. The high grade ores from the Portage and Goose Island open
pits are scheduled to be mined in the first four to five years, allowing
annual production to increase to an average 376,000 ounces over the
first four years of production. Peak production is achieved in Year 1
with 421,000 ounces produced from the Portage pit. A 102 kilometre long
conventional access road, to connect the project to the community of
Baker Lake, is included in the new mine design. This road access has
reduced on-site infrastructure requirements, improved efficiencies in
construction scheduling and reduced overall operating costs. Major
mining equipment will be leased, with an option to purchase. The
associated costs are included in pre-production capital and sustaining
capital cost estimates.

Highlights of Feasibility Study:

Assumptions include a long term gold price of US$400/oz. and an exchange
rate of US$0.75 per Cdn$1.00.



Meadowbank Gold Project Feasibility
------------------------------------------------------
Open Pit Mineral Reserves 2,768,000 ounces
(Proven and Probable)
------------------------------------------------------
Metallurgical Recovery 93.5%
------------------------------------------------------
Mine Throughput 2.73 Mtpa
------------------------------------------------------
Mine Life 8.3 years
------------------------------------------------------
Average Annual Production Rate
Years 1 to 4 376,000 ounces
Life of Mine 316,000 ounces
------------------------------------------------------
Total Cash Cost per Oz.
Years 1 to 4 US$199
Life of Mine US$224
------------------------------------------------------
Internal Rate of Return
Pre-tax 14.3%
After-tax 10.7%
------------------------------------------------------
Payback Period 4.0 years
------------------------------------------------------
Pre-production Capital Cdn$300 million
US$225 million
------------------------------------------------------


"The Meadowbank Gold Project is a substantial platform for the Company
to emerge as a mid-tier Canadian gold producer and will provide a
significant long term economic benefit to Nunavut through job creation,
new business opportunities, taxes and royalties," said Kerry Curtis
President and CEO. "The exploration phase of Meadowbank has consistently
returned additional resources, achieving a remarkable discovery cost of
approximately US$12 per reserve ounce gold. Considerable opportunities
exist to expand the 2.8 million ounce reserve, including the PDF deposit
which is not included in the scope of the current Feasibility, and other
targets within the 25 kilometre long greenstone belt. We will soon
announce a 2005 exploration program designed to evaluate these
opportunities with a goal of further improving the economics by
extending the operational life of the mine. Moving forward through 2005,
as we advance the permitting process and evaluate project finance
options, we have extended the mandate of the Meadowbank Feasibility
Review Committee to continue efforts to refine capital and operating
costs to further improve the economics of the project."

Changes to Project Design

The Meadowbank Project is designed as a conventional open pit gold mine.
Significant improvements to the Meadowbank production model were
achieved in 2004 including optimization of a wide range of capital and
operating items.

Additional metallurgical test work completed in 2004 confirmed that a
coarser grind would not significantly affect gold recoveries. This
allowed for an increase in mill throughput with minor changes to the
2003 mine design and important savings in energy costs for milling. As a
result, a 36% increase in process throughput resulting in a 28% increase
in annual production has been achieved, without a significant reduction
in gold recovery or increase in capital cost for the process plant.

In 2004, the Company drilled 118 additional diamond drill holes
resulting in the improvement in measured and indicated resources at the
Goose Island and Vault deposits. The higher grade reserves from the
Goose Island open pit have been moved forward (Year 2) in the mine
schedule to improve the economics of the project.

Conventional road access has reduced on-site infrastructure
requirements, extended the access season, improved efficiencies in
construction scheduling and reduced overall operating costs. Major open
pit mining equipment will be leased for a five-year term with an option
to purchase. The pre-production lease costs of the equipment are
included in the capital cost estimate, and the ongoing costs of the
lease are included in sustaining capital. A revised construction
schedule and capital cost estimate has been prepared by Merit
Consultants International Inc., a Canadian company specializing in
construction management services. Capital costs, also prepared by AMEC,
are within a 14% variance of the Merit estimate.



2003 Mine Model 2005 Mine Design
-------------------------------------------------------------------
Mill Throughput 5,500 tpd 7,500 tpd
-------------------------------------------------------------------
Access Winter road Conventional Road
-------------------------------------------------------------------
Recovery 94.5% 93.5%
-------------------------------------------------------------------
Mine Life 10 years 8.3 years
-------------------------------------------------------------------
Annual Production 247,000 oz. 316,000 oz.


Company Chairman, Walter Segsworth, who also chaired the Meadowbank
Feasibility Review Committee said, "I am very pleased with today's
result. The whole project team, which considered in detail more than 40
technical and cost aspects of the project, has dramatically improved
Meadowbank at a time when cost pressures have been very challenging."

Increased Resource Estimates for Feasibility Study

The feasibility study assessed the resources of the Portage area, Vault
and Goose Island gold deposits. The PDF deposit which remains at an
early stage and requires further exploration was outside the scope of
the Study. A total of 111,364 meters of diamond drilling (in 801 drill
holes) define the resources of the three deposits. Information from six
surface trenches (366 metres) at the Third Portage and Vault deposits
are also included in the data set.

In January 2004, AMEC completed a technical report (as defined in NI
43-101) on the Meadowbank resource estimates (see news release NR04 -
02) based on a database of 678 drill holes and trenches. An additional
118 drill holes were completed on the property between April and
September, 2004, focusing on improved resource definition. Subsequent
revisions to the Goose Island and Vault resource estimates were
announced in November 2004 (see news release NR04 - 17). Revisions to
the Portage area resource estimates were completed in January 2005 and
reflect the addition of 15 infill drill holes in the central portion of
the deposit. The 2005 Portage area resource estimates have improved
tonnage and grade resulting in a 122,000 ounce increase in the Measured
and Indicated category resource.

The Meadowbank project mineral resource estimates are based on
geologically constrained grade block models that were constructed by
interpolating composited assay values with inverse distance techniques.
AMEC has checked the validity of the models with a number of methods and
is satisfied that the resource models provide an acceptable estimate of
tonnage and grade for the completion of the feasibility study. Grade
capping was employed in all resource models. The updated resource
estimates were prepared in conformance with the requirements set out in
National Instrument 43-101 under the direction of Mr. Steven J. Blower,
P.Geo., of AMEC, who is an independent qualified person as defined by NI
43-101.



Resource estimates for the Feasibility, including the updated Portage
resource, are as follows:

Meadowbank Project Resources - Q1/2005
---------------------------------------------------------------------
Deposit Category Tonnes Grade Ounces
(g/t)
---------------------------------------------------------------------
Portage Area (1.5 g/t cutoff) Measured 1,178,000 5.80 220,000
Indicated 11,120,000 4.60 1,645,000
----------------------------------------
Sub-Total 12,298,000 4.70 1,865,000
Inferred 528,000 4.30 73,000
---------------------------------------------------------------------
Goose Island (1.5 g/t cutoff) Measured - - -
Indicated 2,541,000 5.50 449,000
----------------------------------------
Sub-Total 2,541,000 5.50 449,000
Inferred 1,740,000 4.50 252,000
---------------------------------------------------------------------
Vault (2.0 g/t cutoff) Measured 39,000 3.70 5,000
Indicated 8,468,000 3.70 1,007,000
----------------------------------------
Sub-Total 8,507,000 3.70 1,012,000
Inferred 1,223,000 3.80 149,000
---------------------------------------------------------------------
All Deposits Measured 1,217,000 5.70 225,000
Indicated 22,129,000 4.40 3,101,000
----------------------------------------
Sub-Total 23,346,000 4.40 3,326,000
Inferred 3,398,000 4.30 547,000


Open Pit Reserves

Conventional open pit mining methods will be used to exploit the
resources of the project. Resources from the Third Portage, Bay Zone and
North Portage deposits have been incorporated into a single, four-phase
pit design. Resources from the Vault and Goose Island deposits have been
incorporated into two separate single-phase open pit designs. Resources
from the PDF deposit were outside of the scope of the feasibility.

Open pit mine designs utilize extensive geotechnical engineering studies
by Golder to develop pit wall slope parameters. Designs incorporate
appropriate pit access ramps, wall slope angles, catchment berms and
minimum mining widths for selected equipment using a long term US$400
gold price at an exchange rate of US$0.75 per Cdn$1.00. Reserve
determinations include allowance for dilution (15%) and mining losses
(5%). The average strip ratio for open pit mining is 8.36:1 over the
life of the mine.

Cut-off grades for the three pit areas have been based on the calculated
breakeven grade of 1.5 g/t for the Portage and Goose pits, and 1.75 g/t
for the Vault pit. In addition a minimum mine-able grade thickness of 3
gram-metres for Portage and Goose and 3.5 gram-metres for Vault has been
incorporated into the mine plan.



The proven and probable open pit reserve estimate for the three pits
on the project is as follows:

Meadowbank Gold Project Open Pit Mining Reserves (Proven and Probable)
-------------------------------------------------------------
Open Pit Ore (t) Au Grade (g/t) Contained Ounces
-------------------------------------------------------------
Portage 11,180,000 4.27 1,534,000
Vault 8,469,000 3.18 866,000
Goose 2,247,000 5.09 368,000
-------------------------------------------------------------
Total 21,896,000 3.93 2,768,000
-------------------------------------------------------------


Sensitivities to gold price have been run utilizing Whittle™, an
industry recognized pit optimization program, by varying the gold price
by plus or minus 10% while holding all other parameters constant. On an
in situ basis the contained metal varied by a maximum of two percent
from the base case, demonstrating the relative insensitivity of the
three areas to changes in gold prices. The open pit mining reserves
consist of the inventory of diluted and recovered Measured and Indicated
blocks within the final pit designs. Inferred tonnage, within the final
pit design, is not included within the reserve and has been added to
waste. The Reserves have been prepared in accordance with NI 43-101. Mr.
Mark Pearson, P.Eng Principal Mining Engineer with AMEC Americas Limited
is the independent Qualified Person responsible for preparation of
stated reserves.

Metallurgy

The recovery of gold from ore within the Portage, Goose and Vault open
pit designs is based on detailed metallurgical test work of the
materials from the Meadowbank project over the course of 3 years. The
sampling of the deposits was extensive and test work was completed using
only drill core from ore zones which fall within the proposed mining
plan. The sample materials were selected by qualified persons, and the
materials best represent geological materials planned to be mined. The
metallurgical test program was completed in the years 2003, 2004 and
2005, with gold recovery studies by SGS Lakefield Research Ltd. Gold
recoveries are predicted as follows:



Summary of Expected Gold Recoveries
------------------------------------------------------------
Mined Zone Primary Grind Gold Recoveries
P80 - Microns %
------------------------------------------------------------
Portage Deposit 62 94.1
Goose Island Deposit 62 96.1
Vault Deposit 80 91.3
------------------------------------------------------------


Open Pit Mining

Mining of the Meadowbank Project will be done by trucks and excavators,
and has been projected over an eight plus year mine life. Ore will be
extracted conventionally using drilling and blasting with truck haulage
to a primary gyratory crusher located adjacent to the mill. Waste rock
will be hauled to one of two waste storage areas on the property or used
for dyke construction or dumped into selective areas of the open pits
that have previously been mined out. Mining will initially be
concentrated in the Portage pit area. Waste material from the
pre-stripping will be used as bulk construction materials for dykes, as
well as for construction fill material around the site.

During pre-production, ore grade material will be stockpiled close to
the primary crusher. During year one all of the ore material is
scheduled to come from the Portage pit. Waste material will be used to
complete the construction of the Goose Island dykes, with the remaining
waste hauled to the primary dump north of the Second Portage Lake.

With the completion of the Goose Island dyke, the Goose Island pit will
be brought into production and will augment the ore flow from the
Portage pit. These two pits will operate concurrently for a period of
four years, from years two through five. Waste stripping will commence
in the Vault pit in year four, with the start of ore mining in year four
as the Goose pit comes to a close. During the last two and half years of
the project life, mining will be exclusively from the Vault pit.

Major mining equipment has been based on a five-year lease program.
Equipment leased for the project includes the following: blasthole
drills, mass excavators, front end loader, haulage trucks and tracked
dozers.

All production period lease payments associated with the equipment have
been included within the sustaining capital for the project. Minor
equipment has been based on owner purchase.

Material movement peaks in year two at a rate of 90,100 tpd when the
Goose Island pit is started. The average material movement over the life
of the project is 68,300 tpd. The rate of delivery of ore to the mill
has been set at 7,500 tpd for the life of the mine.

Process

The process design is based on a conventional gold plant flowsheet
consisting of primary gyratory crushing, grinding, gravity
concentration, cyanide leaching and gold recovery in a carbon-in-pulp
(CIP) circuit. The mill will be designed to operate 365 days per year
with a design capacity of 2.7 million tonnes of ore per year (7,500
tpd). The overall gold recovery will be about 93.5%, based on
expectations from metallurgical testwork, with about 40% typically
recovered in the gravity circuit.

The crushed ore is fed to a coarse ore stockpile and then reclaimed to a
semi-autogenous (SAG) mill operating in closed circuit with a pebble
crusher. The SAG mill operates together with a ball mill to reduce the
ore to about 80% passing 60-90 microns, depending on the ore type and
its hardness. The ball mill operates in closed circuit with cyclones.
The grinding circuit incorporates a gravity process to recover free gold
and the free gold concentrate will be leached in an intensive cyanide
leach-direct electrowinning recovery process.

The cyclone overflow is thickened prior to pre-aeration with air and
leaching in agitated tanks. The leached slurry is directed to a six-tank
CIP system for gold recovery. Gold in solution from the leaching circuit
is recovered on carbon and subsequently stripped by high temperature
Zadra elution and recovered form the strip solution by electrowinning,
followed by smelting and the production of a dore bar.

The CIP tailings are treated for the destruction of cyanide using the
standard sulphur-dioxide-air process. The detoxified tailings are pumped
to the permanent tailings facility. The tailings storage is designed for
zero discharge, with all process water being reclaimed for re-use in the
mill to minimize the water requirements for the project.

Infrastructure

The Meadowbank project is located 70 kilometres north of the community
of Baker Lake. The project site is at 134 metre elevation in low lying
topography with numerous lakes. With a typical Arctic climate, the site
experiences a wide range of average annual temperatures of between 23
degrees Celsius to -40 degrees Celsius with low annual precipitation.

Plant site facilities will include a mill building with an attached
maintenance facility, separate office and dry facilities, assay lab and
heavy vehicle maintenance shop. A separate crusher structure will flank
the main process complex. Power will be supplied by an 18 MW diesel
electric power generation plant with heat recovery and an on site fuel
storage and distribution system. A pre-fabricated modular type
accommodation complex for 200 persons will be supported with a sewage
treatment, solid waste disposal and potable water plant. The
mill-service-power complex will be connected to the accommodation
complex with enclosed corridors.

Peripheral infrastructure includes tailings and waste impoundment areas,
a seven kilometre haul road to the Vault open pit, and a 1,100 metre
long gravel airstrip.

Baker Lake facilities will include a barge landing site located several
kilometres east of the community. A storage compound consisting of open
storage area, a cold storage building and a fuel storage and
distribution complex with 38M L capacity will be constructed next to the
barge landing facility. Baker Lake storage facilities will be linked to
the mine site with a 102 kilometre long conventional access road.

Transportation

Ocean transportation of fuel, equipment, bulk materials and supplies to
site will be from Montreal (or Hudson Bay port facilities) via barges
and ships into Baker Lake during the 2.5 month ice-free window that
starts in mid-July of each year.

Baker Lake storage facilities are linked to site by a 102 kilometre long
access road. Fuel and supplies will be transported to the site by
conventional tractor trailer units.

Transportation for personnel and air cargo will be provided on regular
scheduled flights on aircraft based out of northern Manitoba. Staff
living in the surrounding communities will be transported to site by
alternate arrangement.

Environment and Permitting

The Company has prepared and submitted a Draft Environmental Impact
Study ("DEIS") to the Nunavut Impact Review Board ("NIRB"). The report
identifies the potential impacts the Meadowbank Project will have on the
local environment, socio-economic impacts, and the management and
mitigation measures required to minimize the impacts of the project
while maximizing the benefits.

The NIRB is presently reviewing the DEIS and the Company anticipates it
could move into the Final EIS stage in the fall of 2005. Final approvals
and licenses are anticipated in early 2006.

Engineering and Construction Schedule

The engineering and construction schedule for the project anticipates
that all necessary NIRB approvals and licenses are obtained in early
2006 allowing shipping of equipment and supplies in the 2.5 month 2006
shipping season (mid-July to late September). Construction of the access
road from Baker Lake to the Meadowbank site would commence in the fall
of 2006. Upon completion of the access road a mine construction period
of 18 months is required with production commencing in mid-2008.

Capital Costs

The capital cost to carry out the design, supply, construction and
commissioning of the project is Cdn$300 million (US$225 million),
estimated in 4th Quarter, 2004 Canadian dollars with no allowance for
escalation. Lease payments for mine equipment during the pre-production
period have been included in the capital cost estimate. Lease payments
during mine operations have been included within the sustaining capital
for the project.



Capital Cost Summary ($ x 1,000)
-----------------------------------------------------
Description Cdn$ US$
-----------------------------------------------------
Mining 28,287 21,215
-----------------------------------------------------
Process 73,400 55,050
-----------------------------------------------------
Tailings 3,437 2,578
-----------------------------------------------------
Ancillaries 26,266 19,700
-----------------------------------------------------
Mine site Infrastructure 48,320 36,240
-----------------------------------------------------
Baker Lake Facilities 9,174 6,881
-----------------------------------------------------
Owners Costs 8,234 6,175
-----------------------------------------------------
Indirects 74,915 56,186
-----------------------------------------------------
Contingency 28,062 21,046
-----------------------------------------------------
Total Capital Cost 300,095 225,071


The indirects in the above table include Cdn$25 million (US$18.8
million) for third-party engineering, procurement and construction
management (EPCM), integrated with owner participation.

Sustaining capital following plant start-up is Cdn$56 million (US$42
million) including leasing costs for the mine fleet and allowance for
additional open pit equipment. In addition, reclamation costs have been
estimated at Cdn$18 million (US$13.5 million).

Operating Costs

All operating and maintenance costs were summarized into the major
categories of Mine, Process Plant Operations and General and
Administrative (G&A) costs. These costs are expressed in 4th Quarter,
2004 Canadian dollars with no allowance for escalation.



Life of Mine Property Operating Costs ($ 000's)
------------------------------------------------------
Cost Area Cdn$/t milled US$/t milled
------------------------------------------------------
Open Pit Mining $11.93 $8.95
Process Plant $12.24 $9.18
G&A $11.18 $8.39
Total $35.36 $26.52
------------------------------------------------------


Life-of-mine cash costs based on Gold Institute Guidelines, are shown
as follows:

-----------------------------------------------------------
US$/oz
-----------------------------------------------------------
Direct Mining Costs $223
Third-party Refining and Transportation Costs $ 1
Cash Operating Costs $224
Royalties(i) $ 0
Total Cash Cost $224
-----------------------------------------------------------

(i)Note: excludes royalties payable to the Crown and Nunavut
Tunngavik Inc. which are based on net income and reflected in income
and mining taxes.


Financial Evaluation

AMEC completed a financial analysis of the Meadowbank Project using a
discounted cash flow model incorporating applicable Nunavut and Federal
taxes and royalties. The after-tax results include payment of all
royalties. The base case for analysis was built assuming a US$400 gold
price and an exchange rate of US$0.75 per Cdn$1.00 and 100% equity
financing. Project construction capital costs including pre-production
costs, ongoing capital costs and mine closure costs have been included
in the Project cash flow projections. Operating costs are expressed as
4th Quarter 2004 Canadian dollars with no allowance for escalation.



Meadowbank Project Financial Analysis Summary
------------------------------------------------------------
Project Data Estimated Value
------------------------------------------------------------
Life of Mine 8.3 years
------------------------------------------------------------
Total Gold Produced 2.6 M oz.
------------------------------------------------------------
Total Ore Mined 21.9 M t
------------------------------------------------------------
Total Material Mined 205 M t
------------------------------------------------------------
Open Pit Strip Ratio 8.36:1
------------------------------------------------------------
Average Gold Grade 3.93 g/t
------------------------------------------------------------
Base Case Gold Price US$400/oz.
------------------------------------------------------------
Total Cash Cost US$224/oz.
------------------------------------------------------------
Construction Capital Cost US$225 M
------------------------------------------------------------
Sustaining Capital Cost US$42 M
------------------------------------------------------------
Pre-Tax Cash Flow (undiscounted) US$174 M
------------------------------------------------------------
After-Tax Net Present Value @ 0% US$115 M
------------------------------------------------------------
After-Tax Net Present Value @ 5% US$46 M
------------------------------------------------------------
Pre-Tax Internal Rate of Return 14.3%
------------------------------------------------------------
After-Tax Internal Rate of Return 10.7%
------------------------------------------------------------
Payback Period (from start up) 4.0 years

Note: The economic model includes the tax benefits associated with
approximately Cdn$53 million of accumulated exploration, development
and capital cost pools, which are projected to be available to the
Company at the end of 2005 as deductions against future taxable
income.


Sensitivity Analysis Summary

---------------------------------------------------------------------
Variation After-tax After-tax After-tax
(US$) IRR % NPV @ 0% NPV @ 5%
US$ millions US$ millions
---------------------------------------------------------------------
Gold Price (US$)
+10% $440 16.0% $176.8 $90.6
Base Case $400 10.7% $115.3 $46.1
-10% $360 4.9% $52.6 ($0.5)
---------------------------------------------------------------------
Exchange Rate
(US$ per Cdn$1.00)
+10% $0.83 5.5% $63.8 $4.0
Base Case $0.75 10.7% $115.3 $46.1
-10% $0.68 16.6% $165.2 $85.9
---------------------------------------------------------------------
Cash Operating Cost
(US$/oz.)
+10% $247 7.6% $79.7 $20.5
Base Case $224 10.7% $115.3 $46.1
-10% $202 13.7% $150.2 $71.0
---------------------------------------------------------------------
Pre-production Capital
(US$)
+10% $248 8.6% $101.9 $32.1
Base Case $225 10.7% $115.3 $46.1
-10% $203 13.2% $128.3 $59.7
---------------------------------------------------------------------
Grade (g/t)
+10% 4.3 16.0% $176.7 $90.5
Base Case 3.9 10.7% $115.3 $46.1
-10% 3.5 4.9% $52.7 ($0.5)
---------------------------------------------------------------------


Cumberland is a mineral exploration and development company which holds
interests in two undeveloped gold properties in Canada: Meadowbank
(100%) and Meliadine West (22% carried to production). Cumberland is
well financed and is advancing the Meadowbank property to production.

CUMBERLAND RESOURCES LTD.

"Kerry M. Curtis, B.Sc., Geo."

President and CEO

Forward Looking Statements - This News Release contains "forward-looking
statements", including, but not limited to, statements regarding our
expectations as to the market price of gold, strategic plans, future
commercial production, production targets and timetables, mine operating
costs, capital expenditures, work programs, exploration budgets and
mineral reserve and resource estimates. Forward-looking statements
express, as at the date of this report, our plans, estimates, forecasts,
projections, expectations or beliefs as to future events or results. We
caution that forward-looking statements involve a number of risks and
uncertainties, and there can be no assurance that such statements will
prove to be accurate. Therefore, actual results and future events could
differ materially from those anticipated in such statements. Factors
that could cause results or events to differ materially from current
expectations expressed or implied by the forward-looking statements
include, but are not limited to, factors associated with fluctuations in
the market price of precious metals, mining industry risks and hazards,
environmental risks and hazards, uncertainty as to calculation of
mineral reserves and resources, requirement of additional financing,
risks of delays in construction and other risks more fully described in
our AIF filed with the Securities Commissions of the Provinces of
British Columbia, Ontario, Quebec and Nova Scotia in our 40F filed with
the United States Securities and Exchange Commission (the "SEC") and
with the Toronto Stock Exchange.

Cautionary Note to U.S. Investors - The SEC permits mining companies, in
their filings with the SEC, to disclose only those mineral deposits that
a company can economically and legally extract or produce. We use
certain terms in this news release such as "mineral resources" and
"inferred resources" that the SEC guidelines strictly prohibit us from
including in our Form 40-F available from us at Suite 950 - 505 Burrard
Street, Vancouver, B.C. V7X 1M4. You can also obtain this form from the
SEC by calling 1-800-SEC-0330.

Cautionary Note to U.S. Investors concerning estimates of Indicated
Resources - This news release uses the term "indicated" resources. We
advise US Investors that while that term is recognized and required by
Canadian regulations, the SEC does not recognize it. U.S. investors are
cautioned not to assume that any part or all of mineral deposits in this
category will ever be converted into mineral reserves.

Cautionary Note to U.S. Investors concerning estimates of Inferred
Resources - This news release uses the term "inferred" resources. We
advise U.S. investors that while this term is recognized and required by
Canadian regulations, the SEC does not recognize it. "Inferred
Resources" have a great amount of uncertainty as to their existence, and
great uncertainty as to their economic and legal feasibility. It cannot
be assumed that all or any part of an Inferred Resource will ever be
upgraded to a higher category. Under Canadian rules, estimates of
Inferred Resources may not form the basis of feasibility or
pre-feasibility studies, except in rare cases. U.S. investors are
cautioned not to assume that part or all of an inferred resource exists,
or is economically or legally mineable.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Cumberland Resources Ltd.
    Kerry Curtis
    President and CEO
    (604) 608-2557
    (604) 608-2559 (FAX)
    or
    Cumberland Resources Ltd.
    Joyce Musial
    Manager, Investor Relations
    (604) 608-2557
    (604) 608-2559 (FAX)
    www.cumberlandresources.com