Dhanoa Minerals Ltd.
OTC Bulletin Board : DHNA

Dhanoa Minerals Ltd.

April 05, 2007 16:00 ET

Dhanoa Announces Production Plans

TORONTO, ONTARIO--(CCNMatthews - April 5, 2007) - Dhanoa Minerals Ltd's (OTCBB:DHNA)(FRANKFURT:D7Z) three gold mining operations are located in southern Ecuador. The Guanache Mine is the lowest in elevation, the Mollopongo Mine is at the top of the mountain, while the Bonanza Mine is in between.

The vertical extent is about 300 meters (over 1,000 feet). The continuity of the gold vein systems is remarkable from top to bottom as well as laterally, i.e. along strike. Thus, the favorable ground for future exploitation is extraordinarily substantial.

Dhanoa is finalizing plans to increase the current underground production almost five-fold within a six month period. The Mollopongo Mine is surrounded by a strong halo of gold mineralization, which would be amendable to open-pit mining at an initial rate of about 2,000 metric tonnes per day. In 1997, Cambior Inc., a major Canadian gold producer, conducted a thorough evaluation, which provides the basis of Dhanoa's planning.

When on stream, total output of gold could surpass 40,000 ounces annually. This estimate assumes a relatively modest increase in gold recovery from presently depressed levels. Dhanoa has identified the methods and equipment necessary that will help us reach this production goal. Additionally, Dhanoa will be evaluating several acquisition targets nearby.

Security is a vital concern in gold mines. For operations such as Dhanoa's, where grades are high and the gold grains are visible, losses may exceed 15%. The company is in the process of hiring a local supervisor to monitor everything from blasting rock to sale of the gold. When the new centralized milling complex is complete, it will treat all feeds from the mines directly, significantly lowering losses while materially reducing costs.

About Dhanoa Minerals Ltd.

'Dhanoa' is a production stage company formed for the purpose of acquiring, exploring, and developing natural resource properties. Activities during the production and exploration stage include further development of the Company's business plan and raising capital. The Company has recently initiated a new program to evaluate undervalued assets for potential addition to its mineral claim portfolio.

Forward Looking Statements

Statements contained in this news release that are not historical facts are forward looking statements that involve risks and uncertainties. Actual results may differ materially from any forward looking statements due to many risk factors which include, but are not limited to, no operating history and no earnings, reliance on the Company's management team, the ability to successfully implement the Company's business plan, the ability to fund the Company's business strategy, competition and general economic conditions. Reference is made to our filings made with the United States Securities and Exchange Commission.

This news release is not intended for Canadian Investors.

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