Neuer Kapital Corp.

March 17, 2005 15:10 ET

Neuer Kapital Announces Agreement on Matupa Gold Project in Mato Grosso State, Brazil


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NEUER KAPITAL CORP.

NEX BOARD SYMBOL: NEU

MARCH 17, 2005 - 15:10 ET

Neuer Kapital Announces Agreement on Matupa Gold
Project in Mato Grosso State, Brazil

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 17, 2005) - Neuer
Kapital Corp. (NEX:NEU.H) ("Neuer") announces that it has signed an
agreement (the " RFR Agreement") with Aurora Gold Corporation ("Aurora")
whereby, subject to regulatory approval, Aurora has granted to Neuer a
60-day right of first refusal (an "RFR") to purchase all of Aurora's
interest in a mineral property known as the Matupa Gold Project located
in northern Mato Grosso State, Brazil. Aurora has entered into an
agreement (the "Aurora Purchase Agreement") with the underlying property
owner (the "Vendor") of the Matupa Gold Project to purchase a 100%
interest in the project.

Highlights of the Matupa Gold Project:

- Widespread disseminated gold mineralization and artisanal open-pit
mining in an historically productive district

- Property partially explored by major companies

- Encouraging previous drill results and historical resource estimate

- Substantial quantity of high-quality data

- Good infrastructure and year round operating climate

- Neuer can acquire 100% interest

The Matupa Gold Project:

The property covers an area of approximately 6,000 hectares and previous
work on the property was conducted by Rio Tinto and Western Mining in
the late 1990's resulting in a large quantity of information including
geochemical, geophysical, trenching and drilling data. In 1999, Rio
Tinto conducted exploration activities on just part of the property
including 4,337 metres of diamond drilling. The best intersections
reported by Rio Tinto are as follows:



-------------------------------------------
Drillhole Interval (metres) Gold in g/t
-------------------------------------------
FSR-01 16.0 0.98
-------------------------------------------
FSR-03 12.4 2.01
-------------------------------------------
FSR-04 62.05 1.61
-------------------------------------------
FSR-05 49.54 1.24
-------------------------------------------
FSR-06 19.2 2.13
-------------------------------------------
FSR-07 37.37 1.20
-------------------------------------------
FSR-19 8.55 1.24
-------------------------------------------
FSR-24 29.75 0.83
-------------------------------------------

Note: The above assay results were quoted by Rio Tinto in a report
dated April 2000 and although they are considered relevant and
reliable Neuer has not independently verified these assays.


Rio Tinto only explored a small portion of the Matupa property (then
referred to as the Serrinha property) and in their final report entitled
"Prospecto Serrinha Relatorio Final" dated April 2000 concluded that the
geological controls of the gold mineralization were not well understood
but one area of the property (Serrinha 2) had the potential of
containing 17 million metric tonnes of gold mineralization at an average
grade of 1.3 grams per tonne gold equal to 22 tonnes (approximately
700,000 ounces) of contained gold (Investors are cautioned that this is
a conceptual estimate of exploration potential and there has been
insufficient exploration to define a mineral resource on the property
and it is uncertain if further exploration will result in the discovery
of a mineral resource on the property. This estimate of exploration
potential for the Serrinha 2 area is based on the results of 9 drill
holes completed by Rio Tinto in an area measuring approximately 200
meters by 150 metres.

Aurora Purchase Agreement

In order to maintain the Aurora Purchase Agreement in good standing,
Aurora is required to pay to the Vendors:

(a) US$20,000 on signing;

(b) an additional US$50,000 on the four month anniversary of the Aurora
Purchase Agreement;

(C) an additional US$80,000 on its nine month anniversary of the Aurora
Purchase Agreement;

(d) an additional US$150,000 on the 18 month anniversary of the Aurora
Purchase Agreement; and

(e) additional escalating annual payments until the final US$1,300,000
payment is made on the sixty-sixth month anniversary of the agreement.

On completion of the payment schedule the Vendor will have received
payments totaling $US3,350,000 over a five and one-half year period and
will then be entitled to minimum advance royalty payments of US$240,000
per year. The Vendor will receive a 2.25% net smelter return royalty
when the property is in production. The Aurora Purchase Agreement can be
terminated at any time after a 30-day notice is given.

RFR Agreement

Under the terms of the RFR Agreement, within 10 days following the
exercise of its RFR (the "Closing Date"), Neuer is required to:

(a) pay Aurora US$50,000;

(b) issue to Aurora 150,000 common shares of Neuer;

(c) pay to Aurora up to US$20,000 of direct out-of-pocket costs of
Aurora paid in connection with the Aurora Purchase Agreement; and

(d) pay to Aurora all other payments paid by Aurora to the Vendor up to
the Closing Date in connection with the Aurora Purchase Agreement

On the Closing Date, Aurora will assign all of its right, title and
interest in and to the Purchase Agreement to Neuer. Within six months
following the Closing Date, Neuer has agreed to pay an additional
US$50,000 and issue an additional 150,000 common shares of Neuer to
Aurora.

Management of Neuer anticipates exercising the Right of First Refusal
Agreement with Aurora as soon as legal due diligence work is completed
and regulatory approval is obtained.

Geological Setting of Matupa Gold Project:

The project is located in the northeast part of the Peixoto de Azevedo
gold district, one of the most productive gold producing regions in
Brazil in the 1980's. Extensive artisanal workings in alluvium and
saprolite occur over an area of approximately 80 kilometres by 30
kilometres. Gold occurs on the Matupa Gold Project in association with
blebs and clots of sulphide mineralization locally disseminated through
Proterozoic age syeno-granites. The project lies within the overall
setting of the Cachimbo Graben an important new focus of gold
exploration in Brazil. The granitic rocks underlying the property show
evidence of widespread alteration and outcrop to produce a series of
four small hills that form the southern limits of extensive artisanal
workings that cover a large part of the property. These inactive
artisanal workings extend over an area of approximately 2 by 5
kilometres and are focused mostly on the soft alluvial or highly
weathered bedrock (saprolite) that cover the flat low-lying ground of
the property. The artisanal mine workings are shallow, typically 2 to 5
meters deep, and field evidence suggests that primary gold
mineralization was discovered and mined beneath the alluvium and
saprolite horizons in some locations. In addition, there is evidence
that local miners have also mined a significant quantity of primary
sulphide gold mineralization from a series of small open-pits above the
valley floor on the sides of the hills.

Michael Hopley visited the property in December 2004. Mr. Hopley is a
director of Neuer and the Qualified Person as defined in NI 43-101 and
is the person responsible for the information in this news release. The
property visit concluded that the property held considerable potential
for hosting a large-scale gold deposit for the following reason:

- Previous work by other companies including by Rio Tinto had focused
mostly on gold mineralization outcropping in the hills but largely
ignored the large flat-lying areas underlying extensive artisanal
workings.

- The disseminated nature of the gold mineralization occurring at many
different locations on the property.

- Encouraging Rio Tinto drill results despite the lack of understanding
of the geological controls of gold mineralization.

- Open-pit mining on primary gold mineralization in numerous locations
by artisanal miners.

- Evidence of past large-scale gold mining production on the property
and in the region.

Infrastructure on the Matupa project is excellent as it can be easily
reached by mostly paved roads 8 kilometres east of Matupa, a town with a
population of approximately 5,000 and a local centre for large-scale
agricultural development. Matupa can be reached by daily scheduled
airline flights. The area has a year-round operating climate.

Plans for starting the first phase of exploration are currently being
formulated.

Brazil is emerging as a very attractive country for mineral exploration
for the following reasons:

- Proven mineral potential with recent discoveries and production

- The country has not been subject to extensive mineral exploration
activities

- Long history of mining - mining friendly

- Established modern mining code

- Stable democratic government with strong emerging economy

- Government now encourages both internal and foreign investment

- Government is committed to privatization and lower tariffs

- Good infrastructure

- Several major and junior mining companies operating successfully

Neuer Kapital is a new mineral resource exploration company with a
defined growth strategy of rapid project advancement through exploration
and adding value through discovery. The management team is very
experienced in the mineral resources sector through their involvement
with Sunridge Gold Corp., Nevsun Resource Ltd., Bema Gold Corp. and Bell
Coast Capital. Management continues to review several mineral resource
opportunities worldwide. Neuer Kapital currently has 8,082,442 shares
outstanding.

As part and parcel of this acquisition Neuer announces a non-brokered
private placement of up to 1,060,000 units at a price of $0.33 per unit
for total proceeds of $350,000 (the "Offering"). Each unit consists of
one common share and one share purchase warrant. Each share purchase
warrant entitles the holder to purchase a common share of the Company at
a price of $0.43 per share. The share purchase warrants expire eighteen
months from the closing of the Offering. The proceeds of the Offering
will be used for payments for the Matupa acquisition, costs to negotiate
and potentially acquire other mineral properties and for working
capital. The Offering remains subject to regulatory approval.

Neuer Kapital Corp.

Don Halliday, Director

WARNING: The Company relies on litigation protection for "forward
looking" statements. Actual results could differ materially from those
described in the news release as a result of numerous factors, some of
which are outside the control of the Company.


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Neuer Kapital Corp.
    Don Halliday
    Director
    (604) 899-1505
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of the content of this News
    Release.