Goldminco Corporation
TSX VENTURE : GCP

Goldminco Corporation

August 17, 2006 15:40 ET

Goldminco Announces New Joint Venture for Discovery Ridge and Browns Creek Mine

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 17, 2006) - Goldminco Corporation (TSX VENTURE:GCP) is pleased to announce that it has entered into a joint venture agreement, dated 16th August, 2006 (the "JV Agreement"), with Straits Gold Pty Ltd. ("Straits Gold"), a wholly-owned subsidiary of Straits Resources Limited ("Straits Resources") (ASX:SRL). The proposed joint venture pertains to the exploration and development of the Discovery Ridge Tenements (currently 100% owned by Goldminco) and the Brown Creek Tenements (currently 100% owned by Straits Gold (collectively, the "Properties").

Straits Gold must, within four years, either: incur an expenditure of AUD$5 Million on the exploration and development on the Properties; or provide a feasibility study on the Properties. Upon completing these obligations Goldminco will hold a 35% interest, and Straits Gold will hold a 65% interest, in the Properties.

Once Straits Gold has fulfilled its obligations, Goldminco will have the option to begin contributing or to dilute ownership from 35 percent to 10 percent for a free carry into production.

"This is considered to be an excellent opportunity for the company to progress its projects," said Bruce Hooper, President of Goldminco. "Straits Gold will take the risk of the next phase of expenditure and Goldminco will share from the profits of the joint operation."

The joint venture will allow Goldminco to focus on further exploration on its major porphyry copper-gold projects of Temora and Blayney.

Straits Resources currently holds approximately 51% of Goldminco's issued and outstanding common shares. In addition, each of Bruce Hooper and Dave Greenwood is a director and/or officer of both Straits Resources and Goldminco. As a result, the proposed joint venture constitutes a Related Party Transaction under the Policies of TSX Venture Exchange (the "Exchange"). The independent Goldminco directors have agreed to recommend the joint venture and to put a special motion to the upcoming Goldminco Annual General Meeting on September 19th, 2006. The joint venture is subject to regulatory and shareholder approval for Goldminco and for the transfer of the mining leases to Straits Gold.

Background

The Discovery Ridge project lies within the Blayney exploration tenement and is 100 percent held by Goldminco. A current NI 43-101 compliant technical report, dated March 2006, prepared by Cube Consulting Pty Ltd. has been prepared on the property and is available in the public record under the Company's SEDAR profile. The current 43-101 reported resources (see press release June 2006) are:



---------------------------------
Million Gold Gold
Category Tonnes (g/t) Ounces
---------------------------------
Indicated 4.2 1.2 170,000
---------------------------------
Inferred 4.5 1.2 180,000
---------------------------------

At 0.5 grams per tonne gold cut off.

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Million Gold Gold
Category Tonnes (g/t) Ounces
---------------------------------
Indicated 2.0 1.9 118,000
---------------------------------
Inferred 2.2 1.9 136,000
---------------------------------

At 1.0 grams per tonne gold cut off.


The Browns Creek Tenement is 100 percent owned by Straits Gold and lies as a group of granted mining leases within the Goldminco exploration lease. Browns Creek has previously produced 700,000 ounces of gold equivalent from both an open pit and an underground operation at good margins prior to flooding in 1999. The mine lies approximately 25 kilometres north of the Discovery Ridge project and has significant mine infrastructure.

A full independent 43 101 resource calculation has been completed by Cube Consulting and will be lodged on SEDAR in September 2006.



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Million Gold Gold Copper Copper
Category Tonnes (g/t) Ounces (%) Metal (t)
---------------------------------------------------
Measured 1.0 5.2 165,000 0.41 4,000
---------------------------------------------------
Indicated 0.4 3.4 40,000 0.24 1,000
---------------------------------------------------
Inferred 0.6 3.1 60,000 0.37 2,000
---------------------------------------------------

At 2.0 grams/tonne gold cut off.


The Browns Creek deposit is a sub-vertical contact garnet-wollastonite skarn deposit, structurally controlled at the margin of a large Granodiorite intrusive and limestones. Mineralisation is predominatly bornite-chalcopyrite with associated gold mineralisation. The deposit was mined by open pit and underground from 1980 to a depth of 550m below surface. The mine was closed after a major water ingress flooded the mine after a production blast in 1999.

The resource model is based on historical resource calculations, the production data, underground workings and wireframes from previous estimates and mine geological mapping. Modelling utilised 1,305 diamond holes with 2m composited samples, ordinary kriging modelling with a 25g/t Au high grade cut. Historical production included a gravity circuit and a simple flotation plant producing gold dore and a high precious metal copper concentrate. Recoveries were 91% for Gold and 93% for Copper producing a clean concentrate of 35% Cu and 200g/t Au.

Exploration Potential

Both deposits are open at depth. The deposits contain substantial potential to significantly increase the resources and to discover further lenses of mineralization in the vicinity. Both areas have potential for additional deposits within the belt.

About Goldminco

Goldminco is a junior mining exploration company registered in Canada with headquarters in West Perth, Western Australia. Goldminco holds over 2,000 km2 of mining tenements in the highly prospective Lachlan Fold Belt (LFB) of New South Wales, Australia. This is one of the largest holding in the LFB, host to the world class Cadia group of deposits. The tenements are predominately 100 percent owned and operated by Goldminco and have a range of active projects for gold and porphyry copper-gold.

On behalf of the board of directors, Bruce Hooper, President

The Information in this news release and the Report that relates to Mineral Resources is based on resource estimates compiled by Ted Coupland and Mark Zammit. They are both members of the Australasian Institute of Mining and Metallurgy (AusIMM). Ted Coupland is also a member of the Mineral Industry Consultants Association (MICA) and is a Chartered Professional (Geology), and an independent qualified person under National Instrument 43-101. Ted Coupland is a director and Mark Zammit a principal consultant of Cube Consulting Pty Ltd. Both have sufficient experience which is relevant to gold mineralisation and resource estimation to qualify as a competent Person as defined in the December 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the JORC Code). Ted Coupland and Mark Zammit consent to the inclusion in this news report and in the Report of the information, in the form and context disclosed.

To view the location diagram, please click on the following link: http://www.ccnmatthews.com/docs/gcpLD.pdf

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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