Morgain Minerals Inc.

Morgain Minerals Inc.

March 29, 2005 17:18 ET

Morgain Minerals Negotiates C$5,000,000 Loan


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: MORGAIN MINERALS INC.

TSX VENTURE SYMBOL: MGM

MARCH 29, 2005 - 17:18 ET

Morgain Minerals Negotiates C$5,000,000 Loan

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 29, 2005) - Morgain
Minerals Inc. (TSX VENTURE:MGM) announces that it has entered into a
loan agreement pursuant to which H. Morgan & Company will advance
Morgain C$5,000,000. The loan will bear interest at the rate of 12% per
annum and will be secured by a floating charge on Morgain's assets and a
pledge by Morgain of the shares of its Mexican subsidiaries.

The proceeds of the loan will be used to fund the first phase mining and
leaching operation for Morgain's Castillo Mine project which was
initially announced on March 3, 2005 and for general working capital
purposes. This transaction is subject to regulatory acceptance.

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.