Sherwood Copper Corporation
TSX VENTURE : SWM

Sherwood Copper Corporation

August 26, 2005 10:02 ET

Sherwood Completes Acquisition of 100% of Minto Explorations

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 26, 2005) -

Not for distribution to United States newswire services or for dissemination in the United States.

Sherwood Mining Corporation (TSX VENTURE:SWM) is pleased to announce that it has increased its ownership in Minto Explorations Ltd. ("Minto Explorations") to 100% through the compulsory acquisition of the minority shares not tendered into Sherwood's earlier offer. As a result of this move, along with the transactions announced as completed on June 6, 2006, Sherwood now controls a 100% interest in the high grade Minto copper-gold project in the Yukon.

Compulsory Application

On June 6, 2005, Sherwood announced that a total of 5,589,700 Minto Explorations shares (94.54% of the issued and outstanding shares) had been tendered to Sherwood's takeover bid (the "Offer") for Minto Explorations Ltd. ("Minto Explorations"). As a result, the minimum condition was met under the Offer and Sherwood took up and paid for the Minto shares tendered in accordance with the terms of the Offer.

Since more than 90% of Minto Explorations' shares were deposited under the Offer, Sherwood exercised its statutory right to acquire the remaining 322,801 Minto Explorations shares (the "Minto Shares") held by shareholders who did not accept the Offer on the same terms, including price, as the Minto shares that were acquired under the Offer (the "Compulsory Acquisition"). Holders of Minto Shares had until August 17, 2005 to either elect to accept the terms of the Compulsory Acquisition or apply to the Supreme Court of British Columbia. Holders of 64,449 shares elected to take the Cash Election and holders of 74,000 elected to take the Share Election. Holders of the remaining 184,352 Minto Shares were deemed to have made the Share Election for all such Minto Shares in accordance with the terms of the Offer. As result, an additional 645,880 Sherwood common shares and 258,352 Sherwood preferred shares were issued.

Minto Project

The Minto Project is a high-grade copper-gold deposit located in the Yukon Territory of Canada. In the late 1990's, a feasibility study was completed by prior owners, permits obtained and construction commenced. Construction was suspended after expenditures of approximately $10 million, due to depressed copper prices. As announced June 27, 2005, the Minto Project contains measured and indicated resources of 9.2 million tons at a grade of 1.8% copper, 0.016oz/t gold and 0.2oz/t silver, and an additional inferred resource of 0.8 million tons grading 1.4% copper, 0.013oz/t gold and 0.2oz/t silver. The mineral resources for the Minto Project were estimated by Giroux Consulting. Gary Giroux, P.Eng. is the Qualified Person under National Instrument 43-101 responsible for the estimate.

Sherwood

Sherwood's successful consolidation of the ownership of the Minto Project provides a unique investment opportunity - participation in an already permitted, partially constructed, high-grade, open pit copper-gold project located in Canada with infrastructure and exploration potential on the property.

Additional details on the Minto project and the Offer are detailed in Sherwood's offer to purchase and takeover bid circular dated April 29, 2005 which is available on the Minto Explorations' profile on the SEDAR website at www.sedar.com.



ON BEHALF OF THE BOARD OF DIRECTORS

"D. Bruce McLeod
-----------------------------------
D. Bruce McLeod, P.Eng. President


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release. This news release may contain forward looking statements which are not historical facts, such as ore reserve estimates, anticipated production or results, sales, revenues, costs, or discussions of goals and exploration results, and involves a number of risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, metal price volatility, volatility of metals production, project development, ore reserve estimates, future anticipated reserves and cost engineering estimate risks, geological factors and exploration results. See the Company's filings for a more detailed discussion of factors that may impact expected results.



Contact Information

  • Sherwood Mining Corporation
    Bruce McLeod
    President
    (604) 687-7545 or (888) 338-2200
    or
    Sherwood Mining Corporation
    Investor Relations
    (604) 687-7545 or (888) 338-2200
    www.sherwoodmining.com