SOURCE: Simba Mines Inc.

October 20, 2005 08:00 ET

Simba Completes $5 Million Financing Agreement With Baxter Capital Company

BAY CITY, MI -- (MARKET WIRE) -- October 20, 2005 -- Simba Mines Inc. (OTC: SBAM) advises that it has entered into agreements with Baxter Capital Company Inc. for the funding of Simba's work program through to the completion of a bankable feasibility.

Baxter has agreed to initially subscribe for ten million restricted shares of Simba Mines Inc. at fifty cents per share, with no warrants attached, and has agreed to arrange subsequent financings as required.

Baxter has the right to nominate two directors to the Simba board. Both directors will assist Simba's application to list on the American Stock Exchange.

Commenting on the financing, Nik Zuks, President and CEO, stated "This financing will enable Simba to expedite the completion of a bankable feasibility study and the commencement of initial production at a rate of 20,000 tonnes per annum. The association with Baxter Capital is a key long- term relationship that will provide us with additional capital, as required. This will enable us to increase production to 40,000 to 50,000 tonnes per annum as well as allow us to act on some significant additional opportunities."

About Simba

Simba holds through its subsidiaries, an 80% interest in the Cachoeiras de Binga licence in Angola, covering 3615 sq. km in Angola, through its wholly owned subsidiary Sociedade Mineira Simba Jamba LDA. Work to date has established a measured and inferred resource of 58.1 million tonnes at 2.14% copper which is a contained copper resource of 1.3+ million tonnes. The sharing split is Simba 80% and Angolan nationals 20%.

Mining of the resources will be undertaken through conventional heap leaching plus solvent extraction electro mining SXEW to produce LME grade copper cathode.

Initial plant production capacity is planned to be 20,000 tonnes per annum (approximately 44 million lbs) with capital costs estimated at US $35 million. Following upgrading confirmation of the geological resource, it is anticipated that the plant capacity will be increased in Year 3 to 40,000 - 50,000 tonnes per annum (approximately 88 - 110 million lbs of copper). The mine is located near the coast with much infrastructure already in place.

Forward-Looking Statements

Certain statements contained in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on beliefs of management, as well as assumptions made by and information currently available to management. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from expected results. Forward-looking statements involve known and unknown risks and uncertainties, which may cause Simba Mines Inc.'s. actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, volatility of commodity prices, product demand, market competition, and risks inherent in Simba Mines Inc.'s operations.

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