Cambridge Mineral Resources plc

Cambridge Mineral Resources plc

November 20, 2008 02:00 ET

Gold Production Commences at Quintana, Colombia

           Cambridge Mineral Resources plc / Ticker: CMR / Index: AIM / Sector: Mining & Exploration
20 November 2008
                                   Cambridge Mineral Resources plc
                           Gold Production Commences at Quintana, Colombia

Cambridge  Mineral  Resources  plc ('CMR' or 'the Company'), the mining  exploration  and  production
company  primarily  targeting  precious metals in South America,  has  commenced  production  at  its
Quintana Gold Mine in Colombia on 9th November with first gold being poured on 19th November.  It  is
anticipated that the Quintana Mine will produce circa 15,200 ozs of gold and 6,000 ozs of silver  per
annum over a minimum five year mine life.

CMR  has  completed work on the 5.1km access road to the mine site, including deepening and equipping
the  mine,  installing a modern tailings management facility, a 60 bed mine camp and  the  processing
plant  utilising  both  gravity,  flotation and leach processes. The  plant  is  now  becoming  fully
operational and has commenced commercial production at a nominal 75 tonnes per day, processing  daily
mine  production  and  stockpiled  ore.  CMR has a sales contract  in  place  with  CIIGSA,  a  long-
established Colombian gold refiner, with sales prices based on the London p.m. gold price fix on  the
day of delivery to the refinery. Gold dore sales will commence shortly.

CMR  Managing Director Colin Andrew said, "Bringing Quintana on line is a transformational  step  for
CMR as we move from being an exploration company into a mining production company, and we are pleased
to  have  achieved this within the time period scheduled by CMR earlier this year.  We had  initially
targeted  production at a rate of 50 tonnes of ore per day, however with circa 4,000 tonnes contained
in  the pre-production stockpile, I am delighted that we have commenced mill throughput at a rate  of
75  tonnes  per  day, which we expect to further increase in the near future. This  increase  in  the
planned  production  rate allows us to ramp up production and sell more gold.   With  cash  operating
costs  estimated to be approximately US$131 per oz gold over the life of mine, we expect Quintana  to
be  a  low-cost producer demonstrating good profit margins. We look forward to reporting  further  on
Quintana's operations in the near future."

The  Quintana  Mine  is  located in Remedios Municipality of the Department of Antioquia  in  central
Colombia  within  the  country's foremost gold mining district, the Frontino  Gold  Belt,  which  has
recorded  production  approaching  nine million ozs since 1852.   Following  the  completion  of  the
feasibility study which defined a resource of 109,582 tonnes at 24.58 g/t gold and 19.85  g/t  silver
(measured,  indicated  and inferred) containing 86,822 ozs gold, which has  since  been  expanded  by
further drilling and underground development, work commenced in February 2008 to bring the mine  into
production.   The project is estimated to have a NPV of US$10.8 m, based on a 50 tpd  operation  over
five years at a gold price of US$600 per oz.

Colin J. Andrew BSc ARSM MIMMM FGS CEng, Managing Director of Cambridge Mineral Resources plc, and  a
Qualified Person as defined by the 'Guidance Note for Mining, Oil and Gas Companies, March  2006'  of
the London Stock Exchange, has reviewed the information contained herein.
                                             ** ENDS **

For further information, visit or contact:

Colin Andrew                  Cambridge Mineral Resources plc         +44 (0) 20 7663 5618
Managing Director                                           
Michael Burton                Cambridge Mineral Resources plc         +44 (0) 20 7663 5618
Finance Director                                            
Gavin Burnell /               Ruegg & Co Limited                      +44 (0) 20 7584 3663
Roxane Marffy
Colin Rowbury                 Religare Hichens, Harrison plc          +44 (0) 20 7382 7771
Tom Beattie                   Haywood Securities (UK) Limited         +44 (0) 20 7031 8018
Victoria Thomas               St Brides Media & Finance Ltd           +44 (0) 20 7236 1177

Notes to Editor
Cambridge  Mineral Resources plc is an AIM listed mining and exploration company primarily  targeting
precious  metals  in  South America with an output target of 100,000 ozs of  gold  per  annum.   CMR's
strategy  is  to  develop  established resources at an advanced stage of  exploration  or  near  term
production  and develop mineable reserves through further exploration.  It has a strong portfolio  of
mineral projects at varying stages of development including the Quintana gold mine in Colombia, which
commenced  production  in  November 2008 and the Rasuhuilca silver-gold  mine  in  Peru  on  which  a
feasibility  study  has  recently been completed.  The Company also has a  portfolio  of  significant
mineral  assets  in Europe, which it is currently in the process of divesting through  either  joint-
venture or sale.

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