August 17, 2005 12:33 ET

Franc-Or Continues to Work on Bugdainskoe Property Beyond Memorandum of Agreement Extension Deadline

MONTREAL, QUEBEC--(CCNMatthews - Aug. 17, 2005) - Franc-Or Resources Corporation (TSX:FOR) today announced that although the sixty-day extension to the Memorandum Of Agreement signed December 9, 2004 with Priargunskaya Industrial Mining-Chemical Corporation (PPGKHO) was exceeded on August 9, 2005, the Corporation continues to work with PPGKHO to resolve certain outstanding legal and corporate issues. These issues pertain to the Bugdainskoe property, which is located in the southeast corner of the Chita Region of southern Siberia. The Corporation has asked PPGKHO to resolve these issues in the quickest manner possible. PPGKHO prefers not to extend the MOA at this time, as it reports that the outstanding issues may be resolved in the near future, although the Corporation realizes that there is no guarantee that a positive resolution will be achieved.

The Corporation continues to conduct limited technical work in preparation for an exploration drill program, but will not commence any major expenditures until PPGKHO is able to resolve the above-noted issues. Management is hopeful that this can be accomplished soon and that advanced exploration drilling and development of the Bugdainskoe project could proceed.


No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding future plans and objectives of Franc-Or, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Franc-Or's expectations are the risks detailed herein and from time to time in the filings made by Franc-Or with securities regulators.

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