Morgain Minerals Inc.

Morgain Minerals Inc.

March 03, 2005 08:30 ET

Morgain Minerals Acquires Surface Rights and Mineral Concessions on El Cairo Claim, Mexico-the Castillo Mine


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: MORGAIN MINERALS INC.

TSX VENTURE SYMBOL: MGM

MARCH 3, 2005 - 08:30 ET

Morgain Minerals Acquires Surface Rights and Mineral
Concessions on El Cairo Claim, Mexico-the Castillo Mine

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 3, 2005) - Morgain
Minerals Inc. (TSX VENTURE:MGM)

- Permit filed to conduct first phase mining and leaching operation

- Loan facility arranged to finance first phase of operation

- Change in Board of Directors

Chester F. Millar, Chairman and President of Morgain Minerals Inc.
reports that Morgain has acquired surface rights and mineral concessions
required for the long-term production of gold from Morgain's 100% owned
El Cairo open pit heap leach oxide gold property, which will in future
be referred to as the "Castillo Mine".

Acquisition of the surface rights was difficult and time consuming,
requiring negotiating settlement of pre-existing land disputes as well
as purchase and rental agreements with a relatively large number of
individuals. Negotiations were carried out for Morgain by GAP S.A. de
C.V., a Mexican consulting firm.

Morgain has filed for a permit to conduct a first phase mining and
leaching operation. The information gained from this operation will be
used to plan and seek a permit for the full- scale operation of the
Castillo Mine. Morgain expects to be in receipt of the necessary permits
for mine start up and leaching by the end of May 2005.

Morgain has also arranged a loan facility sufficient to finance the
first phase of the operation. Subsequent financing of the full- scale
operation is expected to be greatly facilitated by having demonstrated
the operatio nal aspects and gold recoveries from the first phase
operation.

Gold sales from the first phase mining operation are expected to
commence during the third quarter of 2005.

Change to Board of Directors

Morgain also announces the resignation of Alfonso Daco as a director.

Recent changes to Morgain's Board reflect the progression of the Company
from the exploration stage to the development stage of the Castillo Mine
under the direction of Chester Millar who joined the Board in 2004. Mr.
Millar is a pioneer of bulk heap leaching gold production and the
concept of large-scale bulk mining of low- grade deposits in the Western
United States. Under his guidance, Glamis Gold Ltd. and Eldorado Gold
Corporation grew from small producing operations to substantial mining
companies. Mr. Millar served as Chairman of Glamis Gold from 1985 to
1998, Chairman of Eldorado Gold from 1992 and 1994 and Chairman of
Alamos Gold Inc. from 1996 to 2003.

About Morgain Minerals Inc.

Morgain Minerals is a resource exploration company with a number of
precious and base metal properties in Mexico. Its corporate strategy is
to explore and develop properties with known resources that can be
further explored to a production status. Visit our website at
www.morgainminerals.com for the latest corporate information.


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Morgain Minerals Inc.
    Chester F. Millar
    Chairman and President
    (604) 643-1727
    (604) 643-1726 (FAX)
    morgain@telus.net
    www.morgainminerals.com
    The TSX has neither approved nor disapproved of the information
    contained herein.