Marifil Mines Ltd.
TSX VENTURE : MFM

Marifil Mines Ltd.

December 19, 2006 07:30 ET

Marifil & Maximus Sign Earn-In Agreement for Las Aguilas Copper-Nickel-PGM Property, Argentina

Maximus May Earn Up to 65% Interest

SPOKANE, WASHINGTON--(CCNMatthews - Dec. 19, 2006) - MARIFIL MINES LTD. (TSX VENTURE:MFM) ("Marifil") is pleased to announce that it has signed an agreement with Maximus Resources Ltd., ("Maximus"), a private company involved in a number of resource ventures, whereby Maximus may earn up to a 65% interest in Marifil's "Las Aguilas" property located in the San Luis province of Argentina. Las Aguilas is a 3,359-hectare copper-nickel-PGM ("platinum group metals") property that is a part of Marifil's 30,432-hectare San Luis Nickel-Copper-Platinum Project.

The San Luis Project was previously farmed out to BHPBilliton (BHPB) (See Marifil News Release October 6, 2005.) BHBP had spent about US$1.7 million exploring the San Luis project during the previous 18 months, bringing the total spent on this large target area to more than US$8.0 million. Subsequent to this latest JV, Marifil retains title to 27,073 hectares along the prospective belt of layered ultramafic rocks and believes that other prospects along this belt are highly prospective for PGM's, particularly platinum.

John Hite, Marifil's President said, "This is the fifth JV-agreement we've signed in the less than two years since we became a public company and the second one in the last 30 days. It clearly demonstrates our model for building the Company with aggressive, well-funded partners as well as our ability to find and procure highly prospective properties throughout Argentina."

Marifil's Las Aguilas deposit contains an historical resource of 2.2 million tonnes grading about 0.52% nickel, 0.50% copper, 0.04% cobalt and significant amounts of platinum (this is not a National Instrument 43-101 compliant reserve.) This resource was determined by Fabricaciones Militares ("FM") (Argentina Geological Survey), which carried out almost 10,000 meters of diamond drilling between 1970 and 1984. Marifil believes this resource to be relevant to the extent that it shows that significant quantities of disseminated to semi-massive pyrrhotite, pentlandite and chalcopyrite (ores of copper, nickel, cobalt and platinum) are present and constitute a valid exploration target. This resource occurs within a large fold and mineralization is open-ended down dip along the plunge of the fold.

Under the terms of the Maximus agreement and following an exclusive Due Diligence period of up to 60 days, Maximus can earn a 50% interest in the property by spending US$3,000,000 in exploration and development over a four-year period and making certain payments to Marifil. These payments total US$475,000 in cash or, at Marifil's discretion, 50% each in cash and common shares in a public company into which Maximus intends to vend this option. Upon earning 50%, Maximus can make a further election to increase its ownership to 60% by spending an additional US$2,000,000 and providing a bankable feasibility study within six years of the effective date of the agreement and making cash payments of US$100,000 per year each year beginning on the fourth anniversary of this date. Subsequent to earning a 60% interest, at Marifil's option, Maximus can increase its interest by a further 5% by arranging suitable project financing. At that point, Marifil's share of expenses required to bring the project to commercial production, as a joint venture partner in the project, could be paid for from project cash flow, less an annual payment to Marifil of US$75,000 until such expenses are repaid.

The Agreement is subject to a number of conditions and regulatory approval.

This press release has been reviewed and approved by John Hite, President of Marifil Mines Ltd. under whose direction the exploration program is being carried out. Mr. Hite is a Qualified Person as defined by National Instrument 43-101.

The statements made in this press release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

For further information regarding Marifil Mines Ltd., please refer to the Company's filings on SEDAR (Http://www.sedar.com) or at Marifil's Website (Http://www.marifilmines.com.)

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

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