SOURCE: El Alacran Gold Mining Corp.

August 22, 2006 10:14 ET

El Alacran Gold Mine Corp. in Negotiations With Neighboring Property, The Alacran-Scorpio Mine

Gold Company Announces Additional Information Pertaining to Current Properties, Upcoming Projects and Geology Consultant

TORONTO -- (MARKET WIRE) -- August 22, 2006 -- El Alacran Gold Mining Corp. (PINKSHEETS: EAGM), a precious metal mining company, is in the late stages of negotiations of acquiring The Alacran-Scorpio Mine.

The property is located in the same area of the Company's flagship and initial property of El Alacran.

"The Alacran-Scorpio Mine is also rich with gold, silver and copper resources in the northwestern area of Colombia, and also located in the Municipality of Puerto Libertador," said Mario Monroy, Geology and Geophysics Consultant of El Alacran Gold Mine Corp. "This property, located in the same area as our initial Alacran project, will require much further and extensive studies in order to assess the property's full resource potential."

Mr. Monroy is the Company's Geology and Geophysics Consultant, with background and experience in the field for over 45 years. He holds an extensive background with a resume of more than 60 areas studied, including general geology, regional geology and property geology, reserves and economic geology. Mr. Monroy has suggested that the Company could unite both lands into one massive exploration, development and production property.

The Alacran-Scorpio property contains the same topography as its neighboring mine such as the subdued, rounded hills, with elevations in the area ranging from about 60 to 350 meters (195 to 1150 feet) above sea level. The region contains a dense network of streams and rivers, the principle of which is the north to northeast flowing San Pedro River, which is what makes this a prime location for mining.

"We will be commencing additional studies once El Alacran Gold Mine Corp. can finalize the necessary paperwork for this transaction," said Rafael Delgado, CEO. "We should soon see the completion of this transaction and confirm it as a Company acquisition since I am personally one of the mine's land owners, which will facilitate the matter of attaining this precious property. We are working together to finalize the process."

The Company believes that the gold, silver and copper resources for the entire area of El Alacran mines are massive in nature, which will reflect in additional studies once The Alacran-Scorpio property is fully acquired.

About El Alacran Mining Corp (PINKSHEETS: EAGM)

EAGM is a precious metal mining company engaged in the acquisition, development, and production of properties throughout South America. The Company currently engages in gold, silver and copper mining and related activities, including exploration, extraction, processing, and refining throughout Colombia. El Alacran's staff consists of senior geologists, civil and mining engineers, all of them with extensive experience resulting in the best knowledge to explore and develop the interests of the company.

Forward-Looking Statements

Statements contained in this news release, which are not historical facts, are forward-looking statements within the meaning and pursuant to the Safe Harbor provisions of the Securities Litigation Reform Act of 1995 that involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things: volatility and sensitivity to market prices for gold; replacement of reserves; procurement of required capital equipment and operating parts and supplies; equipment failure; unexpected geological or hydrological conditions; political risks arising from operating in certain developing countries; imprecision in reserve estimates; success of future exploration and development initiatives; competition; operating performance of the facilities; environmental and safety risks including increased regulatory burdens; seismic activity, weather and other natural phenomena; failure to obtain necessary permits and approvals from government authorities; changes in government regulations and policies including tax and trade laws and policies; ability to maintain and further improve positive labor relations; and other development and operating risks. Although El Alacran Gold Mining Corp. believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this report. The company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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