SOURCE: Franklin Mining, Inc.

May 02, 2006 08:45 ET

Franklin Oil & Gas, Bolivia and YPFB Partnership Not Effected by Nationalized Natural Gas Industry

LAS VEGAS, NV -- (MARKET WIRE) -- May 2, 2006 -- Franklin Mining, Inc. (OTC: FMNJ) CEO Jaime Melgarejo issued the following statement concerning news reports of Bolivia's military having taken control of gas fields.

"On Monday, May 1, 2006, President Evo Morales ordered the military and executives of YPFB to take control of Bolivia's energy industry including gas fields, pipelines and refineries. This action was not altogether unexpected in that one of President Morales' campaign promises was to nationalize the natural gas industry if elected. President Morales has also repeatedly said he will not expropriate foreign companies' assets.

"Franklin Mining's newly formed subsidiary, Franklin Oil & Gas, Bolivia, is a Bolivian corporation and has previously signed a Memorandum of Understanding with YPFB for construction and operation of a gas-to-liquid plant in the Santa Cruz department. Our MOU appears to be in full accord with requirements of President Morales' decree.

"Franklin Oil & Gas, Bolivia continues working with their La Paz attorney, Quintanilla & Soria, and continues to move forward with implementation of our YPFB partnership agreement. The Franklin Oil & Gas, Bolivia and YPFB partnership MOU signed last week might be the first new operating contract under President Morales' May 1 decree.

"Whether or not our partnership agreement is recognized as the energy industry's first new operating contract, we are honored to have been chosen by YPFB to be their partners in constructing and operating Bolivia's first gas-to-liquid plant producing diesel fuel and other natural gas liquids."

DISCLOSURES:

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements that are subject to risk and uncertainties, including, but not limited to, the impact of competitive products, product demand, market acceptance risks, fluctuations in operating results, political risk and other risks detailed from time to time in Franklin Mining Inc.'s filings with the Securities and Exchange Commission. These risks could cause Franklin Mining Inc.'s actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, Franklin Mining Inc.

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