Plexmar Resources Inc.

Plexmar Resources Inc.

March 29, 2005 09:45 ET

Plexmar to Install Processing Plant in Northern Peru


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: PLEXMAR RESOURCES INC.

TSX VENTURE SYMBOL: PLE

MARCH 29, 2005 - 09:45 ET

Plexmar to Install Processing Plant in Northern Peru

SAINTE-FOY, QUEBEC--(CCNMatthews - March 29, 2005) - Plexmar Resources
Inc. (TSX VENTURE:PLE), is pleased to announce that it has decided to
install a gold processing plant near its exploration properties located
in Northern Peru. Plexmar is currently looking at different potential
sites to install and operate the plant.

According to a survey, there are at least 700 miners working in the
districts of Suyo, Sapallica, Paimas and Ayabaca and there are at least
70 'quimbaletes' (big circular stone used like a grindstone to crush the
ore to a fine powder) in operation in those areas. We estimate that,
within a 15 kilometer radius of our projects, approximately 100 tons per
day is being mined with grades varying from 2 grams to 15 grams of gold
per 30 kg pail, equivalent to 67 to 500 g/ton Au or 2,15 to 4,82
ozs/ton, US$914 to $2,048 per ton. This number is expected to grow
significantly as more local people are becoming miners and more gold
rich veins are being found.

The artisan miners sell their gold rich ore between US$300 to US$350 per
ton to buyers who in return ship it to processing mills located as far
as Ica, Arequipa and Nazca, some 1,500 Km away. It is Plexmar intentions
to consolidate this market.

A number of sites are currently being considered to host the plant.
Budget quotes have been asked from engineering firms in Lima to design,
move and build the new plant. Ore material is currently being taken from
different workings and will be shipped to a metallurgical lab for
preliminary leaching tests. Once a site is selected, the permitting
process will be initiated.

Plexmar already owns a 100 ton per day plant located near the town of
Trujillo. The plant was designed to process sulphide ore using
flotation cells. Plexmar will dismantle and use as much equipment as
possible from this plant and move it to the new site.

For the local communities and the artisan miners, there are numerous
benefits on having a plant nearby. First the plant will train, employ
local people and create local economic windfalls. Second, the miners
will be able to mine lower grade ores, as of now, the material grading
under 1 ounce per ton is not touched and considered waste. Third, the
plant will eliminate the need for the miners to use mercury which is a
health and environmental hazard. Fourth, the Company will train the
miners in health, safety and help them improve their productivity.

Plexmar holds approximately 40 km2 of land that form the Bolsa del
Diablo property in Northern Peru. An alteration system of significant
size, a minimum of 4 km2, has been identified within the property. All
samples collected so far are anomalous in gold with values ranging from
14 ppb to 119,5 g/t Au. Preliminary observations suggest the presence of
a large scale epithermal system.

All the volcanic rocks in the area of interest show pervasive argillic
alteration and have developed very intense stockwork structures. Gold
mineralization occurs partly as fracture fillings in the stockwork and
also as dissemination throughout the rock. Limonitization is pervasive
throughout the rock. This intense stockwork was observed in numerous
places throughout the property.

The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release

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Contact Information

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