Desert Sun Mining Corp.

Desert Sun Mining Corp.

March 14, 2005 09:00 ET

Desert Sun Announces Financial Results For The Sixteen Months Ended December 31, 2004


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: DESERT SUN MINING CORP.

TSX SYMBOL: DSM

MARCH 14, 2005 - 09:00 ET

Desert Sun Announces Financial Results For The Sixteen
Months Ended December 31, 2004

TORONTO, ONTARIO--(CCNMatthews - March 14, 2005) - DESERT SUN MINING
CORP. (TSX:DSM)(AMEX:DEZ) announces that, at December 31, 2004, the
Company had treasury assets with a market value of $21.4 million. Total
acquisition, exploration and development expenditures were $29 million
in the sixteen months ended December 31, 2004, compared with $3 million
in the year ended August 31, 2003 and $36,000 in the year ended August
31, 2002. All expenditures in this three year period relate to
activities at the Jacobina Mine and within the Bahia Gold Belt. The
increase in exploration expenditures, from $3 million in fiscal 2003 to
$8 million in fiscal 2004, reflects ongoing efforts to expand the
mineral resource and reserve base and to search for additional ore
bodies. In addition to the $8 million spent on exploration in the
16-months, a further $5 million was incurred in the first quarter to
acquire from Valencia Ventures Inc. the remaining 49% interest in the
Jacobina property not already owned by Desert Sun. The purchase price of
$5 million was satisfied through a cash payment of $2 million and the
issuance of 1,851,852 common shares at a price of $1.62 per share.

Desert Sun changed its financial year-end from August 31 to December 31,
with a transition year of 16-months ending December 31, 2004. On a
consolidated basis, Desert Sun recorded a net loss from operations of
$8.3 million in the sixteen months ended December 31, 2004, or 14 cents
per share; compared with $2.3 million (or 9 cents per share) in the
12-months ended August 31, 2003 and $125,000 (or 1 cent per share) in
the year ended August 31, 2002. The loss from operations included a
non-cash charge of $4.4 million for stock-based compensation as a result
of implementing the recommendations of the Canadian Institute of
Chartered Accountants. The net loss from operations for the 2004 fiscal
year, excluding this book entry, was $3.8 million; comprising general
and administration expenses of $4.5 million and interest received on
cash invested of $0.7 million. General and administration expenses
increased significantly over fiscal 2003, including increased
remuneration and office expenses due to increased staffing and time
commitments by existing staff, higher investor relations and travel
expenses reflecting the activities associated with the raising of $51.2
million through equity offerings in the 16-month period. There were also
substantial listing and filing fees and professional fees in connection
with the procedures to register the Company's securities with the
Securities and Exchange Commission in the United States.

The increase in cash and equivalents from $6.8 million at August 31,
2003 to $21.4 million at December 31, 2004 is primarily attributable to
the issuance of capital stock through private placements and the
exercise of warrants and stock options. During the sixteen months, $51
million (fiscal 2003 - $10 million) was raised, net of issue costs,
through the issuance of common shares. A total of $47 million was raised
in brokered private placements with the balance received from the
exercise of options ($0.3 million) and warrants ($3.3 million).

Desert Sun Mining is a Canadian gold exploration and development company
listed on the Toronto Stock Exchange and the American Stock Exchange
with 100% ownership of the Jacobina Mine and the 155 km long Bahia Gold
Belt in the state of Bahia, in northeastern Brazil. The mine is
scheduled to re-start operations in April of 2005 with proven and
probable mineral reserves of 14,378,000 tonnes @ 2.12 g Au/t containing
980,000 ounces of gold. As a result of Desert Sun's exploration programs
to date, Measured and Indicated resources total 24,800,000 tonnes @ 2.53
g Au/t containing 2,050,000 ounces of gold, and Inferred Resources total
22,200,000 tonnes @ 2.61 g Au/t containing 1,900,000 ounces of gold. The
mineral reserves are included within the Measured and Indicated mineral
resources. For additional information, please see Desert Sun's website
at www.desertsunmining.com.

Statements in this release that are not historical facts are
"forward-looking statements" within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. Readers are cautioned that any
such statements are not guarantees of future performance and that actual
developments or results may vary materially from those in these
"forward-looking statements".

NOT FOR DISTRIBUTION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE
SERVICES

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Desert Sun Mining Corp.
    Naomi Nemeth
    Manager, Investor Relations
    (416) 861-5901 or 1-866-477-0077
    (416)-861-8165 (FAX)
    www.desertsunmining.com