Dynasty Metals & Mining Inc.

Dynasty Metals & Mining Inc.

August 22, 2006 09:00 ET

Dynasty Secures Additional Mining Concessions and Acquires Land at Zaruma Gold Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 22, 2006) - Dynasty Metals & Mining Inc. (TSX VENTURE:DMM) (the "Company") reports that it has purchased interests in the Barbasco 1A (77.24 hectares) and Barbasco Unificado (10 hectares) mining concessions. The two concessions are contiguous with, and located within, its Zaruma Gold Project. The Company has also acquired 23 hectares of land, to be used for mine portal access.

Highlights of underground rock chip channel sampling by the Company on the new concessions include 35.5 grams per tonne ("g/t") gold and 40.6 g/t silver over 0.6 metres and 27.07 grams per tonne ("g/t") gold and 39.9 g/t silver, also over 0.6 metres, taken from the Barbasco vein.

The new concessions connect the Company's surrounding 100%-owned concessions, which cover a group of veins that host some of the previously-estimated Zaruma Gold Project resources (see news release dated July 12, 2006). Portions of these high-grade veins run through the new concessions.

Company President, Rob Washer, commented: "This is an important purchase for us, as it not only has the potential to add to the Zaruma Project gold resources, but it also gives us continuity through our concessions in the Zaruma area. With our recent receipt of a very positive Preliminary Assessment Report on the Zaruma Gold Project, we have accelerated our exploration and development work in the area."

Details of Concession Rights

Under the purchase agreement, the Company has acquired an undivided 25% interest in the two concessions, subject to a "concession sharing agreement" ("CSA") of a type commonly used in Ecuador. The CSA permits the Company to mine the entire area of the concessions, in co-operation with the small-scale mining groups that hold the remaining 75% interest, and to retain 100% of the revenue from any material mined by it. The Company has a first right of refusal if a holder of any of the remaining 75% interest chooses to sell.

The new concessions are currently being mined, using hand-held pneumatic drills and air compressors, by the small-scale miners to depths of a maximum of 90 metres - being the limit of their technical support. Because veins in the Zaruma gold camp typically run to depths of 500 metres, or more, the CSA effectively provides the Company with the exclusive right to mine the deeper levels of the concession utilising standard large-scale mining methods.

The new concessions host portions of two known high-grade gold and silver veins, Barbasco and Tablon. Based on geological data from the area, the Company believes that the concessions may host up to four additional mineralized veins.

Detailed Sampling Results

Underground rock chip sampling by the Company of the Barbasco vein was conducted over 80 metres in an existing 220 metre-long tunnel, at depths of between 40 and 50 metres. Significant assay results from the rock chip channel sampling follow:

Sample Gold Silver Equivalent(i) Width
Number (g/t) (g/t) (g/t) (metres)
Barbasco Vein
M4 27.07 39.9 27.79 0.6
M6 35.5 40.6 36.23 0.6
M7 11.63 40.8 12.37 0.7
M1 1.22 263.5 6.01 0.4
M5 23.7 26.9 24.18 0.15
M2 1.46 69.2 2.71 0.25
M3 1.29 60.7 2.39 0.4
M8 2.02 25.2 2.47 0.86
M9 1.37 10.6 1.56 0.8
M10 3.89 15.7 4.17 0.6
(i) Gold Equivalent is established using a 55:1, silver to gold
ratio, without regard to metallurgical recoveries.

About the Zaruma Gold Project

The Zaruma Gold Project is located in the cantons of Zaruma and Portovelo, Province of El Oro, Ecuador, approximately 160 kilometres south of Guayaquil, Ecuador's main seaport. The project comprises 44 mineral concessions, covering approximately 103 square kilometres, in an active high-grade goldfield. Gold mineralization occurs in a 15 kilometre by 5 kilometre polymetallic epithermal precious metal vein system. The vein system is hosted by a monotonous Tertiary volcanic sequence of intermediate to mafic volcanic breccias, tuffs and andesites.

Quality Control and Assurance

Underground rock chip samples were taken at intervals ranging from 6 metres to 10 metres, based on the course of the vein. Each sample was taken directly from the vein and was approximately 1.0 metre in length, 10 cm wide and 3 cm deep. Samples were sealed on the property and shipped for processing to the BSI Laboratories, in Lima, Peru.

The Barbasco Vein sampling program was under the supervision of Franklin Guanuna, a "qualified person" as that term is defined in NI 43-101 of the Canadian Securities Administrators, who is responsible for the technical information contained in this news release.

About Dynasty Metals & Mining Inc.

Dynasty Metals & Mining Inc. is a Canadian based mining company involved in the exploration and development of mineral properties in Ecuador. In addition to its Zaruma Gold Project, the Company is currently developing its 100% owned Jerusalem Gold Project, and exploring a large grass-roots discovery, its 100% owned Dynasty Copper-Gold Belt.

Dynasty Metals & Mining Inc.

Robert Washer, President and CEO

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information