Desert Sun Mining Corp.

Desert Sun Mining Corp.

March 04, 2005 11:33 ET

Desert Sun Mining Enters into Currency Protection Agreement


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: DESERT SUN MINING CORP.

TSX SYMBOL: DSM
AMEX SYMBOL: DEZ

MARCH 4, 2005 - 11:33 ET

Desert Sun Mining Enters into Currency Protection
Agreement

TORONTO, ONTARIO--(CCNMatthews - March 4, 2005) - DESERT SUN MINING
CORP. (TSX:DSM)(AMEX:DEZ) has entered into an agreement with BankBoston
to purchase Brazilian Real (R$) for monthly delivery of the equivalent
of US$1 million per month beginning January 1, 2006 at an exchange rate
averaging 3.00 for the year. This equates to approximately 60% of the
Jacobina Mine capital and operating budgets and the rate is in line with
the exchange rate assumed in the 2003 feasibility study.

"We have entered into this agreement to mitigate currency risk over the
long term," commented Bruce Humphrey, Desert Sun's President and Chief
Executive Officer. "We will continue to monitor the Real's performance
and are prepared to conclude further contracts if required."

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 the 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 22,000,000 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".

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Contact Information

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