Morgain Minerals Inc.

Morgain Minerals Inc.

March 30, 2007 09:01 ET

Morgain Receives Permit & Begins Construction at El Castillo Gold Project, Mexico

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 30, 2007) - Morgain Minerals Inc. ("Morgain") (TSX VENTURE:MGM) is pleased to announce it has received formal authorization for the construction and operation of its wholly-owned El Castillo open pit heap leach gold mine in Durango, Mexico. The Company has also engaged a contractor to provide mining and construction services. Equipment mobilization is under way and construction will begin immediately. Morgain anticipates that construction will be substantially complete in 5 months, with the first gold pour slated for the third quarter of 2007.

The authorization from SEMARNAT, the Mexican environmental agency, approves the environmental impact statement and plan of operations, as well as a change in the use of land. Morgain already has received an explosives permit and has obtained long-term surface rights.

"This milestone vividly demonstrates our team's ability and commitment to building a mine and to building solid value for our current and future shareholders," said Chris Babcock, President and CEO.

Morgain's El Castillo Gold Project is a large oxide gold deposit located in the State of Durango, Mexico approximately 100 km north of the city of Durango. As previously reported (see October 27, 2006 Press Release), present plans at Castillo call for mining 17.7 million tonnes of ore grading 0.88 grams gold per tonne (containing 499,567 ounces) to produce approximately 350,000 ounces of gold over a twelve year period averaging 30,000 ounces per year.

Morgain Minerals Inc. is an emerging gold producer focused in Mexico. Its corporate strategy is to acquire properties with known resources that can be further developed to production status. Visit Morgain's website for the latest corporate information.


Christopher E. Babcock, President & CEO


The technical and pre-feasibility reports referred to above contain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the future price of metals, timing of exploration activities, mine life, economic viability and estimated internal rate of return, estimation of mineral resources, the results of drilling, estimated future capital and operating costs, future stripping ratios, projected mineral recovery rates and plans for developing, the projects. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "can", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the companies to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the exploration and potential development of the projects, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of metals. Although the companies have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The companies do not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

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