Matador Exploration Inc.
TSX VENTURE : MXN

Matador Exploration Inc.

August 17, 2005 14:27 ET

Matador Exploration Inc.: Clarification of August 9, 2005 Announcement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 17, 2005) - Matador Exploration Inc. (TSX VENTURE:MXN) ("Matador") is pleased to clarify information provided in its announcement of August 9, 2005, regarding its joint acquisition of the Coolgardie Gold Project and formation of the Redemption Joint Venture ("RJV") with Western Australia based Austminex Ltd.

The total resource estimate for tenements that form the basis for the RJV includes an Indicated Resource of 315,720 contained ounces (5.32 million tonnes at an average grade of 1.85 gAu/t) and an Inferred Resource of 1,080,825 contained ounces (3.7 million tonnes at an average grade of 2.45 gAu/t). For more information, please refer to Matador's announcement of the resource estimate on June 22, 2005, as well as the detailed 43-101 compliant technical report that was filed on SEDAR on July 18, 2005.

Regarding the significant potential for discovery of further multi-million ounce orebodies, these potential orebodies are conceptual in nature; there has been insufficient work to determine the full size of the deposits being explored; and it is uncertain whether further exploration will result in discovery of additional mineral resource or mineral reserve on the property. None of the current mineral resources constitutes a mining reserve, nor are any of the resources considered economic at this time.

However, a number of the resources have potential upside to be expanded and, with future work, converted into economically mineable mineral reserves. The consolidated land package and production facilities of the RJV represent a unique opportunity for the discovery, delineation and conversion of resources into mineable reserves.

With this objective in mind, Matador has planned a A$2.7M exploration program as phase 1 of its RJV commitment to spend A$8M within 3 years, which is unprecedented in the historic Coolgardie region.

On behalf of the Board

Matador Exploration Inc.

Sean Mager, Chief Financial Officer

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

Contact Information

  • Matador Exploration Inc.
    Bernie Kennedy
    Investor Relations Manager
    888-331-2269 or (604) 331-2269
    (604) 646-4526 (FAX)
    www.matadorex.com