ECU Silver Mining Inc.
TSX VENTURE : ECU

ECU Silver Mining Inc.

November 02, 2005 10:57 ET

Press Release-ECU Silver Mining Inc.

TORREON, COAHUILA--(CCNMatthews - Nov. 2, 2005) - ECU Silver Mining Inc. (TSXV:ECU) -

ECU Silver Mining Inc. (the "Company" or "ECU") is pleased to announce that it has signed an agreement with Golden Tag Resources Ltd. ("GTR"), whereby GTR will have the option to earn a 50% interest in the Company's San Diego property by expending USD$1.5million, in increments of USD$0.5 million over the next three years. This agreement will accomplish two goals: Firstly, the Company will be able to focus its upcoming exploration program primarily on the "known veins", where it expects immediate results. Secondly, the Company will not have to wait another two or three years before being able to commit the financial resources necessary for exploration work at the San Diego property. Although the San Diego property comprises only a small fraction of ECU's total land claims, we expect that once the planned exploration work is completed, enough data will be collected to significantly enhance resources that are National Instrument 43-101 compliant.

Over the past six months, the Company has demonstrated its capacity to generate positive cash flows from operations, has stabilized its operating costs and has continued to improve mineral recoveries. Starting with the recommendations of the National Instrument 43-101 compliant technical report (dated July 10th, 2005) and completed by Roscoe Postle Associates Inc., the Company is now ready to begin an in-depth review of its mineral inventory as we now enter a new development phase.

This review will include a Pre-feasibility study, Underground Development and Diamond drilling to assess the extensions at depth and laterally of the known veins. This new data will then be used to update the Mineral Inventory in order to allow the Company to include both reserves as well as resources. Furthermore, this exploration program will include diamond drilling to continue the definition of several geological models normally associated with large deposits, including the skarn type below the Santa Juana mine.

Michel Roy, ECU's President and Chief Executive Officer added, "we feel this is a win-win situation for both ECU and Golden Tag shareholders. The San Diego property offers excellent potential and Golden Tag will have the opportunity to begin exploration work shortly. ECU shareholders can now look forward to having two major exploration programs taking place over the next few weeks and months. The Company is excited and looks forward to the data that will be collected from both programs".

Mr. Michel Roy, P. Geo., a "qualified person" within the meaning of NI 43-101, prepared the technical information disclosed in this news release.

ECU Silver Mining Inc is a junior Gold, Silver, Zinc and Lead producer in the prolific mining district of Velardena, Mexico where historically over 500,000 ounces of gold and 250,000,000 ounces of silver have been mined. Full scale profitable production began in May 2005 at the Company's Santa Juana mine. To ensure the Company is positioned for continued growth and expansion, and to take full advantage of the current record setting metals prices, the Company has a fully operational infrastructure in place, several months of planned production available from the current stopes, and ongoing exploration programs.

Statements in the release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially. We undertake no duty to update any forward-looking statement to conform the statements to actual results or changes in our expectations.

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

Contact Information