Franconia Minerals Corporation
TSX VENTURE : FRA
OFEX : FRA

Franconia Minerals Corporation

July 31, 2006 10:30 ET

Franconia and Beaver Bay Expand Birch Lake Venture Area; Change of Auditor

SPOKANE, WASHINGTON--(CCNMatthews - July 31, 2006) - Spokane, Washington: FRANCONIA MINERALS CORPORATION (TSX VENTURE:FRA)(OFEX:FRA)("Franconia") is pleased to report that it recently signed an amendment to its Earn-In Agreement (the Birch Lake Option) with the Beaver Bay Joint Venture ("BBJV") regarding the Birch Lake Project in the Duluth Complex of Minnesota, USA. This amendment increases the area of interest of the Birch Lake Option by approximately 8,300 acres to include additional land acquired in 2005 from American Copper & Nickel Inc., some of which were outside of the area of interest of the Birch Lake Option.

Under the terms of the Birch Lake Option, Franconia may earn an 82% interest in the properties by making payments in cash and common shares to BBJV, and by funding the project to commercial production. (See Franconia press release of April 4, 2006.) This option agreement, as previously amended, remains unchanged in all other respects. Mr. Ernest K. Lehmann, a founder, chairman and director of Franconia, owns a controlling interest in North Central Mineral Ventures, which in turn owns 70% of BBJV.

Franconia also announces that, effective July 26, 2006, the board of directors of Franconia, based on the recommendation of the audit committee, has accepted the resignation of BDO Dunwoody LLP received on July 24, 2006 and has appointed Smythe Ratcliffe Chartered Accountants to fill the vacancy.

Franconia Minerals Corporation trades on both the TSX-V in Canada and OFEX in the UK under the symbol FRA. (For additional information see www.franconiaminerals.com.) The directors of Franconia Minerals Corporation accept responsibility for this announcement. Franconia presently has 37,284,570 shares issued and outstanding.

This document, which has been issued by Franconia Minerals Corporation (Franconia), has been approved solely for the purposes of Section 21 of the Financial Services and Markets Act 2000, by Lion Capital Corporation Limited (Lion), 4th Floor, 2 Cromwell Place, London SW7 2JE, who is authorised to carry on Investment Business by the Financial Services Authority. Lion, is acting as advisers for Franconia and to no-one else and will not be responsible to anyone other than Franconia for providing protections afforded to customers of Lion for providing advice in relation to any investment made pursuant to this announcement and makes no recommendation for the suitability of any investment, which is the subject of this announcement. FORWARD-LOOKING STATEMENT: Although Franconia Minerals Corporation believes many of its properties have promising potential, its properties are in the early stages of exploration. None have yet been shown to contain proven or probable mineral reserves. There can be no assurance that such reserves will be identified on any property, or that, if identified, any mineralization may be economically extracted. Incorporated in Alberta Canada No. 207953670.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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