Mundoro Mining Inc.

Mundoro Mining Inc.

March 08, 2005 08:19 ET

Mundoro Announces Annual Financial Results for Year Ended December 31, 2004


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: MUNDORO MINING INC.

TSX SYMBOL: MUN

MARCH 8, 2005 - 08:19 ET

Mundoro Announces Annual Financial Results for Year
Ended December 31, 2004

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 8, 2005) - Mundoro
Mining Inc. (TSX:MUN) announces that the Company's annual financial and
operating results for the year ended December 31, 2004 have been filed
on the SEDAR system. The highlights provided in this release should be
read in conjunction with the Company's audited annual financial
statements and Management Discussion and Analysis, which are available
on SEDAR at www.sedar.com. All dollar amounts are in Canadian dollars
unless otherwise stated.

Highlights

- Significant financial highlights included:

- Mineral exploration costs for 2004 were $4,266,389 as compared with
$349,188 in 2003 and $519,559 in 2002.

- During 2004, the Company raised $633,221 from the exercise of warrants
resulting in total of 26,041,479 shares issued as at December 31, 2004.

- Income from cash management in 2004 amounted to $421,301, including
$149,980 gain on the sale of government bonds.

- By year-end Mundoro had transferred funds US$3,240,000 in aggregate to
its joint venture company in China, Liaoning Tianli Mining Company
Limited ("Tianli") as registered capital, an increase of US$1,400,000
over 2003.

- The Company ended the year with $7,931,922 in cash and marketable
securities, compared with $12,149,187 in 2003.

- The consolidated loss for the year was $6,477,850 or $0.25 per share
compared with a loss of $0.15 per share in 2003 and $0.09 in 2002.

- A new resource estimate by AMEC Americas Limited on the Zone 1 deposit
at the Maoling Gold Project was completed near year-end, and included
much of the data generated by the 2004 drilling program. The updated
estimate shows Indicated Resources of 81.6 million tonnes with an
average grade of 1.2 grams gold per tonne or 3.0 million ounces gold
using a 0.75 grams gold per tonne cut-off grade. This represents an
increase of approximately 1.9 million ounces of gold over the
corresponding number for 2003. Inferred Resources in the new estimate
amount to 45.4 million tonnes at a grade of 1.0 gram gold per tonne for
1.4 million ounces.

- The Company drilled almost 27,000 metres at Maoling during 2004 in 103
core holes in Zone 1 and Zone 4 deposit areas.

- Metallurgical testing has indicated gold recoveries averaging 94%
using conventional milling / CIL processing methods. AMEC is conducting
a pre-feasibility study on Maoling that is expected to be completed in
the second quarter of 2005, for a potential open-pit mining operation.

About Mundoro Mining Inc.

Mundoro Mining Inc. is a well-financed resource company focused on the
exploration and development of the large-scale, pre-feasibility stage
Maoling gold deposit in Liaoning Province, China. The Company has a 79%
interest in the project through a Sino-Foreign co-operative joint
venture with the corporate arm of the Liaoning provincial government,
and has been aggressively exploring the 20 square kilometer exploration
license area. Thus far, three deposits that outcrop at surface have been
outlined with Indicated Resources of 81.6 million tonnes at 1.2
grams/tonne (3.0 million ounces of gold) and Inferred Resources of 100.4
million tonnes at 1.1 grams/tonne (3.5 million ounces). The resource
estimates calculated by AMEC Americas Ltd. are presented using a 0.75
grams gold per tonne cut-off grade. Disseminated, free-milling gold
mineralization at Maoling occurs within a sequence of altered phyllitic
metapelite to meta-siltstone and is associated with sheeted quartz vein
sets and 3-5% disseminated sulphide mineralization. Metallurgical
testing has indicated gold recoveries averaging 94% using conventional
milling / CIL processing methods. AMEC is now conducting a
pre-feasibility study on Maoling that is expected to be completed in the
second quarter of 2005, for a potential open-pit mining operation.

The statements herein that are not historical facts are forward-looking
statements. These statements address future events and conditions and so
involve inherent risks and uncertainties, as disclosed under the heading
"Risk Factors" in the company's periodic filings with Canadian
securities regulators. Actual results could differ from those currently
projected. The Company does not assume the obligation to update any
forward-looking statement.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Mundoro Mining Inc.
    Colin H. McAleenan
    Chairman and CEO
    (604) 669-8055
    or
    Mundoro Mining Inc.
    Cyrus Ameli
    Vice President, Communications
    (604) 669-8055
    info@mundoro.com
    www.mundoro.com
    The TSX has neither approved nor disapproved of the information
    contained herein.