Glencairn Gold Corporation

Glencairn Gold Corporation

February 24, 2005 13:48 ET

Glencairn Doubles Reserves at Limon, Increases Mine Life to More Than Five Years


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: GLENCAIRN GOLD CORPORATION

TSX SYMBOL: GGG
AMEX SYMBOL: GLE

FEBRUARY 24, 2005 - 13:48 ET

Glencairn Doubles Reserves at Limon, Increases Mine
Life to More Than Five Years

TORONTO, ONTARIO--(CCNMatthews - Feb. 24, 2005) - Glencairn Gold
Corporation (TSX:GGG)(AMEX:GLE) is pleased to announce a year-over-year
doubling of mineral reserves at its Limon Mine in Nicaragua as at
December 31, 2004, as well as the start of ramp development on the Santa
Pancha Zone at Limon and steady progress toward final construction items
at the Bellavista Mine in Costa Rica.

"This mineral reserve increase at Limon exceeds the goal we set for
ourselves at the beginning of 2004," said Kerry Knoll, President and
Chief Executive Officer. "We will maintain an aggressive exploration
program at Limon this year with the intention of increasing reserves
further, with a focus on targeting higher grade material."

Mineral Reserves and Mineral Resources

Proven and probable mineral reserves at the Limon Mine were increased to
297,500 contained ounces of gold, slightly more than twice the reserve
ounces from a year earlier. At current mining rates, the December 31,
2004, mineral reserves are sufficient for more than five years of
operations at Limon.

The largest single contribution to this increase at Limon was from the
conversion of Santa Pancha resources to reserves at the end of 2004.
Mining gains from outside the previously estimated reserve blocks and
minor reserve additions at the Talavera operation also contributed to
the increased reserves at Limon. The increase in the gold price
assumption used for the mineral reserve calculation at Limon, from
US$350 per ounce in 2003 to US$375 per ounce for 2004, was not a
significant factor in the increase of reported mineral reserves.

The mineral reserve and resource estimates were conducted in-house by
the Limon geological staff. Glencairn retained Roscoe Postle Associates
Inc. (RPA) to provide an independent audit of the Limon mineral
reserves, resources and mine plan.

RPA confirmed that the mineral reserves and resources for Limon are in
keeping with industry standards and are appropriate for the deposit and
mining methods used at the Limon operation, that their classification is
in compliance with CIM Council Standards on Mineral Resources and
Reserves Definitions and Guidelines adopted on August 20, 2000, as
required by National Instrument 43-101 (NI 43-101), and that RPA concurs
with the Company's five-year mine plan. As required by NI 43-101, a
Technical Report prepared by RPA covering the Limon mineral reserve and
resource estimates disclosed herein will be filed on SEDAR within 30
days of this news release.

Mineral reserves and mineral resources for the Bellavista Mine,
currently nearing production, and mineral resources for the La India
property in Nicaragua are unchanged as at December 31, 2004, from
previous estimates. The Company is in the process of divesting its
interest in the Vogel property in Timmins, Ontario, and for that reason
has removed Vogel from its mineral resource inventory.

In total, as at December 31, 2004, the Company's proven and probable
mineral reserves stand at 852,570 contained gold ounces, a 21% increase
over reported reserves at the end of 2003. The December 31, 2004,
mineral resources, which are in addition to the mineral reserves, are
627,720 contained ounces of measured and indicated mineral resources and
549,600 contained ounces of inferred mineral resources. A complete table
showing tonnes, grade, contained ounces and accompanying notes for the
current mineral reserve and mineral resource estimates is appended to
this news release.

Operations Update

The Company received its operating permit in January 2005 for the Santa
Pancha project and has started development of an underground mine to
exploit this new mineral reserve at its Limon operation in Nicaragua.
The ramp portal has been collared and the Company is now driving a
decline. The project is on schedule for underground mine production from
Santa Pancha in early 2006. The Santa Pancha project will become one of
the main sources of mill feed at Limon from 2006 onward. Mining has
already commenced from a small open pit at Santa Pancha.

Bellavista continues to be on track for gold production in the second
quarter of 2005. The project is in its final stages of development with
more than 90% of the construction complete as reported in a news release
dated January 17, 2005. Systems testing is expected to commence in early
March 2005.

Qualified Persons

The notes to the attached table identify the specific Qualified Persons
for the reported mineral reserves and resources.

Michael Gareau, P. Geo. and Vice President Exploration for Glencairn, is
the Qualified Person for this news release and has read and approved the
news release. H. Agnerian, P. Geo., and J. Cox, P. Eng., are the
Qualified Persons for Roscoe Postle Associates Inc. and have read and
approved the sections of the news release for which they are referenced.

To find out more about Glencairn Gold Corporation (TSX:GGG, AMEX:GLE),
visit our website at www.glencairngold.com.

NOTE TO U.S. READERS: This news release uses the terms "Measured",
"Indicated" and "Inferred" Resources. United States investors are
advised that, such terms are recognized and required by Canadian
regulations, the U.S. Securities and Exchange Commission does not
recognize them. "Inferred Resources" have a great amount of uncertainty
as to their existence, and great uncertainty as to their economic and
legal feasibility. It cannot be assumed that all or any part of an
"Inferred Resource" will ever be upgraded to a higher category. Under
Canadian rules, estimates of Inferred Resources may not form the basis
of feasibility or other economic studies. U.S. investors are cautioned
not to assume that all or any part of Measured or Indicated Resources
will ever be converted into Reserves. U.S. investors are also cautioned
not to assume that all or any part of an Inferred Mineral Resource
exists, or is economically or legally mineable.

FORWARD-LOOKING STATEMENTS: This news release contains certain
"forward-looking statements" within the meaning of Section 21E of the
United States Securities Exchange Act of 1934, as amended. Except for
statements of historical fact relating to the company, certain
information contained herein constitutes forward-looking statements.
Forward-looking statements are frequently characterized by words such as
"plan," "expect," "project," "intend," "believe," "anticipate",
"estimate" and other similar words, or statements that certain events or
conditions "may" or "will" occur. Forward-looking statements are based
on the opinions and estimates of management at the date the statements
are made, and are subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements. These
factors include the inherent risks involved in the exploration and
development of mineral properties, the uncertainties involved in
interpreting drilling results and other ecological data, fluctuating
metal prices, the possibility of project cost overruns or unanticipated
costs and expenses, uncertainties relating to the availability and costs
of financing needed in the future and other factors. The Company
undertakes no obligation to update forward-looking statements if
circumstances or management's estimates or opinions should change. The
reader is cautioned not to place undue reliance on forward-looking
statements.


Glencairn Gold Corporation Mineral Reserves and Mineral Resources as at
Dec. 31, 2004

Mineral Reserves



---------------------------------------------------------------------
Cut-off
Gold grade Gold Grade Contained
price (g/t) Tonnes (g/t) Gold Ounces
---------------------------------------------------------------------
Limon -
proven,
underground $375 3.82 177,600 5.88 33,600
---------------------------------------------------------------------
Limon -
probable,
underground $375 3.82 1,574,000 5.15 260,830
---------------------------------------------------------------------
Limon -
probable, open pit $375 1.80 35,200 2.71 3,070
---------------------------------------------------------------------
Limon Total 1,786,800 5.18 297,500
---------------------------------------------------------------------
Bellavista - proven $325 0.5 9,847,000 1.48 467,350
---------------------------------------------------------------------
Bellavista -
probable $325 0.5 1,392,700 1.96 87,720
---------------------------------------------------------------------
Bellavista Total 11,239,700 1.54 555,070
---------------------------------------------------------------------
Total Proven & Probable 852,570
---------------------------------------------------------------------


Measured and Indicated Mineral Resources (additional to mineral reserves)



---------------------------------------------------------------------
Limon - Measured 4.5 20,500 6.30 4,100
---------------------------------------------------------------------
Limon - Indicated 4.5 182,300 5.97 35,100
---------------------------------------------------------------------
Limon Total 4.5 202,800 6.00 39,200
---------------------------------------------------------------------
La India - Indicated 4.5 775,400 8.2 205,300
---------------------------------------------------------------------
Bellavista - Measured and
Indicated 0.5 9,932,800 1.2 383,220
---------------------------------------------------------------------
Total Measured & Indicated 627,720
---------------------------------------------------------------------


Inferred Mineral Resources (additional to mineral reserves)



---------------------------------------------------------------------
Limon 4.5 955,800 6.95 213,600
---------------------------------------------------------------------
La India 4.5 1,123,500 9.3 336,000
---------------------------------------------------------------------
Total Inferred 549,600
---------------------------------------------------------------------


Note 1 - The mineral reserves and resources reported herein are based on
the CIM Council Standards on Mineral Resources and Reserves Definitions
and Guidelines adopted by the CIM Council on August 20, 2000 ("CIM
Standards"). Mineral resources that are not mineral reserves do not have
demonstrated economic viability. Mineral Resources for Limon and
Bellavista are in addition to Mineral Reserves.

Note 2 - The mineral reserve and mineral resource estimates for the
Limon Mine set out in the above table were prepared under the
supervision of K. Atkin, P.Geo., an employee of the Company and the
responsible Qualified Person, in compliance with National Instrument
43-101. H. Agnerian, P. Geo., and J. Cox, P. Eng., of Roscoe Postle
Associates Inc. are the Qualified Persons who audited the mineral
reserves and mineral resources.

Note 3 - The mineral resources for the Bellavista Mine set out in the
above table were prepared by Snowden Mining Industry Consultants Inc.
The mineral reserves for the Bellavista Mine were prepared by Wheaton
River Minerals Ltd. Pincock, Allen & Holt Ltd. audited the mineral
reserves and mineral resources. Bellavista mineral reserves are based on
a strip ratio of 1.32:1 (tonnes waste per tonne of ore). Readers are
advised that National Instrument 43-101 of the Canadian Securities
Administrators requires that each category of mineral reserves and
mineral resources be reported separately. For the Bellavista mineral
resources, readers should refer to the Annual Information Form of the
Company for the year ended December 31, 2003, available at www.sedar.com
and the Company's website at www.glencairngold.com for this detailed
information.

Note 4 - The mineral resources for the La India concession set out in
the above table were in part estimated by TVX Gold Inc. in 1997 for
selected veins; mineral resources for the remaining veins are derived
from a joint 1990 Russian-Nicaraguan study. Only the mineral resources
from the Russian-Nicaraguan study that correspond to the equivalent CIM
Standards, as defined in Note 1 above, of indicated mineral resources
and inferred mineral resources are included in the mineral resources
reported above; there were no corresponding measured mineral resources.
The La India mineral resources should be considered historical
estimates, as appropriate.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Glencairn Gold Corporation
    Kerry Knoll
    President and CEO
    (416) 860-0919
    (416) 367-0182 (FAX)
    www.glencairngold.com
    or
    Renmark Financial Communications Inc.
    Sylvain Laberge
    (514) 939-3989
    slaberge@renmarkfinancial.com