Magnus International Resources, Inc.

Magnus International Resources, Inc.

March 04, 2005 10:06 ET

Magnus International Resources Inc. Releases Corporate Overview


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: MAGNUS INTERNATIONAL RESOURCES INC.

OTC Bulletin Board SYMBOL: MGNU

MARCH 4, 2005 - 10:06 ET

Magnus International Resources Inc. Releases Corporate
Overview

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 4, 2005) - Magnus
International Resources Inc. ("Magnus") (OTCBB:MGNU) is pleased to
release its latest corporate overview. A pdf version of this corporate
overview will be available at the Magnus website at
www.magnusresources.com on Saturday March 5, 2005. Preliminary
geochemical soil analysis results from Magnus' Huidong property are also
expected to be released shortly.

Company Overview

Magnus International Resources, Inc. (OTCBB:MGNU) specializes in
identifying, acquiring and developing precious and base metal properties
in China. Magnus is currently focused on high-grade gold projects. At
present, Magnus has the right to earn a 90% interest in three gold
exploration projects in China's mineral-rich Sichuan and Yunnan
provinces.

These properties comprise Huidong (83.29 sq. km) and Luquan (44.02 sq.
km) for which Magnus holds an exploration license through Long Teng
Mining Ltd., its Chinese joint venture company, and Xintaizi (3 sq. km),
for which Magnus is in the process of acquiring an existing mining
license. In addition, Magnus has signed a preliminary joint venture
agreement for exploration of the Qilian property (200 sq. km) in Qinghai
province - also with the right to earn a 90% interest.

Huidong Overview

The Huidong (pronounced hwee-dong) property is located immediately
northwest of the Boka Gold Project of Southwestern Resources (Toronto
Stock Exchange: "SWG" - with a 3 year share price low of Cdn$1.065 and
high of Cdn$21.50). The Huidong project is on trend with and is
geologically similar to the richly mineralized Boka Gold Project.
Huidong is known to be gold-rich. There are numerous small-scale peasant
mining tunnels throughout the area and placer gold has also been
recovered from rivers and streams that drain the area.

Southwestern has made a series of gold discoveries that have established
Boka as a potential world-class gold deposit. Recently reported drilling
results have been as significant as 10.2 g/t over 77.45m. One analyst
report, by a major US brokerage firm, suggests that the Boka property
may host as much as 8.4 million ounces of gold within a number of
high-grade gold zones. This estimate is based on the exploration work
that has been done to date.

The Chinese joint venture partner of Magnus for all of its properties to
date - Team 209 - played a critical role in exploring and developing the
Boka project prior to bringing in Southwestern Resources as its foreign
joint venture partner to further develop the property.

Huidong Joint Venture

In July 2004, Magnus established Long Teng ("Rising Dragon") Mining
Ltd., a Sino-foreign joint venture with Team 209, to explore the Huidong
gold property. Later the joint venture added the Luquan Property,
located in neighboring Yunnan province, to the exploration area. Magnus
has committed to spending US$5 million on the Huidong and Luquan
properties over four years. In return, Magnus will earn a 90% interest
in the property. Team 209 will own the remaining 10%. Within the first
eight months, by February 2005, Magnus has contributed $1,230,000 to the
Long Teng joint venture.

Boka Gold Project Geology

Boka gold mineralization is hosted within a sequence of Middle to Upper
Proterozoic carbonaceous shales, calcareous shales and sandstones
deposited in a Late Proterozoic eugeosyncline and consolidated during
the Jinningian Orogeny. The majority of the gold occurs in east-west and
northwest trending ductile-brittle faults and in stratabound zones
characterized by extensive multi-stage breccia/shear development and
accompanied by quartz-carbonate and sulphide (pyrite) replacement. The
extensive faulting and resulting mountainous terrain in the area was
created by the interaction of numerous east-west faults with a major
north-trending fault that is thought to have played a major role in
creating the rich mines of the region, the Panxi Rift. The extreme
mechanical actions of bending and breaking the rock created spaces and
pathways through which metal-bearing fluids passed. There are twelve
known gold zones within the Boka Project Area, all of which occur within
a 25 km long north-south structural zone and are confined to a specific
stratigraphic horizon - collectively these constitute the Boka Trend.

Huidong & the Boka Trend

Drilling at Boka has established a well-defined, richly-mineralized,
north-south gold trend - the Huidong Property lies along a projection of
this trend. Gold mineralization at Boka is hosted by a structural and
stratigraphic geological setting similar to that of the Huidong
Property. At Huidong, fault-controlled gold and copper mineralization,
indicated by rock sampling of mineralized faults, strongly resembles
Boka's multiple discovery zones. Furthermore, Southwestern Resources
reports the "positive association between mineralization at the Boka
Gold Project and gold-in-soil anomalies." Encouraging initial gold and
copper geochemical analyses from soil and rock samples collected along
mineralized faults at Huidong further strengthen the Boka comparison.

Research analysts believe that the 25 km corridor hosting multiple zones
of mineralization - the Boka Trend - has the potential to extend even
further, thereby increasing the known area of mineralization into what
may become a world-class gold mining district. This large area of
multiple gold zones bodes well for Magnus. Gold deposits are not
generally isolated occurrences. They tend to occur on faults that
provide passageways for gold-rich fluids to move through the rocks and
create ore bodies. That is why clusters of gold deposits often tend to
occur along lines, or trends. The rock type cut by the ore-controlling
faults often plays a role in producing an ore body. Certain rocks are
more susceptible to being mineralized than others. The rocks at Boka and
Huidong are similar.

Successful Joint Venture Partner

Magnus' joint venture partner, Team 209, is officially known as Yunnan
Province Nuclear Industry Brigade 209. Team 209 has about 1,000
employees, including more than 200 geologists and engineers. This group
of experienced government geologists was instrumental in the rapid
development of the Boka Gold Project. The joint ventures between Team
209 and Magnus will apply 209's proven expertise and local knowledge in
the exploration and development of the Huidong, Luquan, Qilian and
Xintaizi properties. Magnus and Team 209 have a strong working
relationship and have agreed to cooperate on future properties together.

Huidong Exploration Program

Magnus and Team 209 are conducting a comprehensive gold and copper
exploration program on the Huidong property under the expert direction
of AMEC, a leading global provider of mining expertise and services. The
goal of the program is to define the extent of the gold and copper
anomalies in the area. The program is well underway. It includes a
two-stage geochemical soil and rock sampling program, geological mapping
and surveying to define targets for follow-up trenching, tunneling, and
drilling. Also, there are at least 65 small-scale peasant mining tunnels
throughout Huidong. These tunnels will be used to generate significant
rock sample analysis. The Huidong exploration strategies are the same as
those used at Boka.

Magnus is also using satellite imagery to attempt to identify high-grade
mineralized structures and zones by comparing the Huidong property with
images of the gold mineralization zones at Boka. This imagery aids in
mapping fault patterns and identifying key zones of gold and
copper-related hydrothermal alteration at both Boka and Huidong. It is
anticipated that geophysical surveys may also be employed.

Property-wide soil and rock sampling has been conducted, comprising more
than 7,500 samples on a 50m x 250m grid (high-density program) and 2,500
samples on a 100m x 750m grid (low-density program). All of the samples
were prepared for analysis at the Yunnan Province Central Laboratory
(YPCL) in Kunming, China. YPCL has been inspected by AMEC and is also
used by Southwestern Resources. The high-density program is initially
being analyzed at the YPCL lab for gold, copper, and three other
elements. The low-density program has been analyzed for 36 elements at
ACME Analytical labs in Vancouver, BC. Magnus expects to report
preliminary results, including potential anomalous gold trends or
patterns, in early March 2005.

At least 3,000 cubic meters of trenches will be constructed across the
best soil geochemical anomalies to obtain better rock exposures for
sampling and more detailed mapping. Gold zones further defined by
trenching and rock sampling will be targeted for drilling in 2005.
Tunneling in less accessible areas will further define and sample gold
mineralized zones. Team 209 has recently purchased two new
western-manufactured drill rigs, and has indicated that it will make
them available for use at the Huidong property.

AMEC Brings Global Mining Expertise

Magnus has retained AMEC as a project consultant to guide its
exploration programs. AMEC is one of the leading mining engineering
firms in the world. AMEC has provided front-end services to virtually
all of the world's major mine developers and operators, as well as
mid-sized mining companies, "juniors" and lending institutions.
Front-end services include ore reserves, geological modeling, mine
planning design, geotechnical services, and feasibility studies.

The parent company of AMEC's mining group is an international project
management and engineering services company that employs 45,000 people
in more than 40 countries. With more than 50 years of experience in
meeting the needs of the mining industry, AMEC is providing Magnus and
Team 209 with expert guidance and support through a core team of
professionals. In the last 10 years alone, AMEC has provided services on
more than 1,000 mining and metallurgical projects in nearly 70
countries. As an example, AMEC was recently awarded the contract for the
option studies, pre-feasibility study and detailed feasibility study of
Ivanhoe Mines' Oyu Tolgoi porphyry copper-gold-molybdenum mine in
Mongolia.

Other Magnus Properties

- 44.02 sq. km Luquan property in Yunnan province is located 40 km west
of Boka and 30 km southwest of Huidong. The terrain is similar to that
of the Huidong and Boka Projects.

- 3 sq. km Xintaizi property is located in Kangding County in northern
Sichuan province. Magnus is in the process of acquiring the gold mining
license for the property. Initial rock samples taken by Team 209 from
existing small-scale mining tunnels are extremely encouraging. Magnus
plans to initiate a comprehensive work program in the near future.

- 200 sq. km Qilian property is located in an under-explored, richly
mineralized region of Qinghai province in western China, which has only
recently been opened for exploration. Small-scale mining has indicated
the presence of high-grade copper and favorable gold values in tunnel
complexes. There is abundant placer gold mining along the streams and
rivers draining the area.

Modern Day Gold Rush in China

China is the world's fourth largest gold producer, with an annual output
of approximately 175 tonnes in 2002. But there remains considerable
potential for untapped mineral wealth because most of the country has
yet to be systematically explored using modern exploration techniques. A
booming economy, liberalized business regulations, and an aggressive
pursuit of foreign investment have set the stage for a modern day gold
rush in China. Industry leaders such as Placer Dome and Barrick Gold
have already invested there. Ambitious junior mining companies - such as
Magnus - are also taking advantage of this rare opportunity to attempt
to replicate Southwestern's success at Boka in an attempt to discover a
multi-million ounce gold deposit. Several factors are attracting foreign
mining firms to invest in China now. These include:

- granting of irrevocable exclusive mining rights to foreign companies
with permission to transfer mining rights to other foreign companies

- China's need of capital and technology transfer from the west to
develop its domestic metal supply

- equal access guarantees to foreign mining companies to extensive
government geological data

- China's membership in the World Trade Organization, which subjects it
to sanctions for any unjust discrimination against foreign mining
companies

- establishment of a domestic market in Shanghai for gold sales at close
to world spot prices

- government deregulation and the emergence of a vibrant mining private
sector

For further information please refer to the Company's filings with the
SEC on EDGAR or refer to Magnus' website at www.magnusresources.com.

If you would like to receive regular updates on Magnus please send your
email request to info@magnusresources.com.

FORWARD LOOKING STATEMENTS This document may include "forward-looking
statements" regarding Magnus International Resources, Inc., and its
subsidiaries, business and project plans. Such forward looking
statements are within the meaning of Section 27A of the Securities Act
of 1933, as amended, and section 21E of the United States Securities and
Exchange Act of 1934, as amended, and are intended to be covered by the
safe harbor created by such sections. Where Magnus expresses or implies
an expectation or belief as to future events or results, such
expectation or belief is believed to have a reasonable basis. However,
forward-looking statements are subject to risks, uncertainties and other
factors, which could cause actual results to differ materially from
future results expressed, projected or implied by such forward-looking
statements. Such risks include, but are not limited to price volatility
of gold and other metals; currency fluctuations; political, operational,
and governmental approval and regulation risks in China. For a more
detailed discussion of such risks and other factors, please see "Risk
Factors" in our Form 10-K for our most recently completed fiscal year,
on file with the SEC at www.sec.gov. This document also contains
information about adjacent properties on which Magnus has no rights to
explore or mine. Investors are cautioned that mineral deposits on
adjacent properties are not necessarily indicative of mineral deposits
on Magnus' properties.

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