SOURCE: Franklin Mining, Inc.

January 23, 2007 08:30 ET

Franklin Updates Status of Bolivian Projects

LAS VEGAS, NV -- (MARKET WIRE) -- January 23, 2007 -- Franklin Mining, Inc. (PINKSHEETS: FMNJ) today released an updated summary of mining, oil and gas and other projects and relationships in Bolivia.

Government Relations: Despite changes being faced by other foreign investors in Bolivia's mining and oil and gas sectors, Franklin Mining, Inc. was the first American partnership agreement issued by the Mining Corporation of Bolivia (COMIBOL) since 1952. The agreement was signed by COMIBOL in early 2006 and operations were guaranteed by Bolivia's Minister of Mines and Metallurgy.

Mining: Franklin's wholly owned subsidiary, Franklin Mining, Bolivia SA, is the majority partner with COMIBOL in multiple mining projects in the Department of Potosi; included are both mining and tailings projects.

A 2006 Letter of Guarantee from Walter Villarroel Morochi, Bolivia's Minister of Mines and Metallurgy, recognized Franklin as the first foreign owned investor permitted to establish an operation in the historic Cerro Rico de Potosi, the world's fifth largest undeveloped silver deposit (http://gold.seekingalpha.com/article/23676).

A Report of Operations for Franklin's planned Cerro Rico project is in final review prior to presentation for COMIBOL's acceptance. This third party review is intended to protect the interests of Franklin Mining, Inc. and FMNB shareholders as the required and final investment is about to be made by Franklin Mining, Bolivia SA.

As previously announced, an expanded due diligence in nearly complete prior to the start of processing of the Pulacayo Tailings. An initial 100 Kg test produced test results greater than anticipated and a second, larger sample of 1,000 Kg was collected and has been sent to a COMIBOL approved laboratory; results of this confirming analysis are expected in about two weeks.

With the first delivery of product, cash flow will be realized for the partnership and the proven values of both mining projects can be added to Franklin's balance sheet.

Oil and Gas: Franklin Oil and Gas, Bolivia SA possess a Memorandum of Understanding dated April 25, 2006 with YPFB (Yacimientos Petroliferos Fiscales Bolivianos, Bolivia's state-owned oil company) to build Gas-to-Liquid facilities. The original MOU was resigned May 25, 2006 for the purpose of confirming that the relationship was in compliance and understanding of Bolivia's May 1, 2006 nationalization of the oil and gas sector and was the first such signing following nationalization.

Franklin Oil and Gas, Bolivia SA also possess agreements with the city of Ayo-Ayo and the Department of Tarija (both in Bolivia) to build smaller GTL facilities for local sales and distribution of diesel fuel.

Construction and Development: Franklin Oil and Gas, Bolivia SA has finalized a separate partnership agreement with Ayo-Ayo for development of a small GTL plant and a free trade zone.

Social Benefit Programs: As part of a commitment to support programs of social benefit, Franklin Mining, Inc. and Franklin Oil and Gas, Bolivia SA recently completed several projects. A 10,000 liter water tank was contributed to the city of Ayo-Ayo and its 7,000 inhabitants. Uniforms for both COMIBOL and Hotel Europa employee soccer teams were provided. During the Christmas Holidays, food and toys were contributed so that more than 500 orphans could enjoy an afternoon of happiness and joy. Later, Franklin will work on reconstruction of a local hospital.

In cooperation with ISTEC (Ibero-American Science and Technology Education Consortium, Albuquerque, NM, (http://www.istec.org/liblink)), Franklin Oil and Gas Bolivia, SA has developed a digital hospital to serve Tarija and surrounding remote areas. Franklin's long-term relationship with ISTEC is designed to eventually build an additional nine digital hospitals in other remote areas of Bolivia.

Additional information on Franklin projects can be found at www.franklinmining.com.

About Franklin Mining, Inc.

Franklin Mining, Inc. has interests in the United States, Argentina and Bolivia which include a wholly owned subsidiary, Franklin Mining, Bolivia, as well as 51% interest in Franklin Oil & Gas, Bolivia and 51% interest in Franklin Oil & Gas, Argentina.

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.

Contact Information

  • For Further Information check out our website www.franklinmining.com or
    contact:
    Investor Relations:
    Mr. Andrew Austin
    1-702-386-5379