Spirit Exploration, Inc.

Spirit Exploration, Inc.

March 06, 2008 12:44 ET

Spirit Exploration, Inc. Reports the Union Carbide Findings of 6,300,000 Tons of Measured and Indicated Ore Reserves at the Emerson Tungsten Mine in Nevada

BAKERSFIELD, CALIFORNIA--(Marketwire - March 6, 2008) - On February 20, 2008 Spirit Exploration, Inc. (PINK SHEETS:SPXP) announced that it has signed an agreement to purchase the Emerson Tungsten Mine near Rachel, Nevada from Nevada Minerals, Inc. As part of the due diligence process, Spirit has reviewed all the old reports and findings from Union Carbide, the owner of the property when the mine was in production. The most important of these reports was the original Scope Engineering Design Memorandum that detailed the ore reserves, mine design and the process engineering that ultimately led Union Carbide to construct the Emerson Mine and Concentrator at an estimated cost of $25 million. The mill started processing ore at a rate of 1000 tons per day in September 1977. At that time tungsten prices were rising steadily reaching levels of around $155 to $165 per STU by 1981 with occasional short peak to $195 per STU. In August 1981 the world tungsten market suffered a shock. China, with the world's largest tungsten reserves, entered the world market as a major low cost producer. There was also a recession in 1980-1981 and a general reduction in mining and oil drilling, both of which use tungsten carbide tipped drill bits. Furthermore, the US government decided to sell tungsten concentrates and compounds from the Strategic Stockpile. Within weeks the price fell to $100 per STU and within a few months to $32 per STU. After a review of mining costs and market conditions in 1982 the project was placed on "care and maintenance" and the work force was reduced to cover only site security, environmental monitoring, maintenance and related activities. Nevada Minerals acquired the property in August 2004.

Up to 2005 it was not economically feasible to consider opening the Emerson Mine with tungsten below $65 per unit. In 2005 Tungsten reached $270 USD and has remained at least $250 per unit since.

Union Carbide summarized the geology of the Emerson tungsten deposit: "There are two main tactite horizons found at Emerson Mine which is referred to as the Moody Zone and the Grabstake Zone. They are separated by a belt of hornfels having a variable width of 25 to 110 feet. The Moody Zone has been the most significant scheelite-bearing tactite. It has a strike length of 6,000 feet, varies in thickness from 15 to 110 feet and has a known vertical range of at least 1500 feet. The Grubstake Zone is not as persistent as the Moody, but thickness up to 100 feet is noted. This cone is most prominent around the 200 N. Callahan level and extends to the 900 level. Other tactite zones include the Middle Tactite Zone, the Contact Tactite Zones, and the Schofield Mine Tactite Zone." Union Carbide Corporation drilled and did extensive sampling and reported ore reserves of 6,303,300 tons that averaged 0.44% tungsten and 0.60% zinc. This equates to over 3,000,000 units (STU) of tungsten, which is priced at $250 per unit. The ore reserves also contain significant amounts of zinc.

Tons % WO3 (Pounds) %Zn (Pounds)
--------- ---------------- ----------------

Measured Ore 1,490,800 0.44 (14,430,944) 0.60 (19,668,000)

Indicated Ore 4,812,500 0.46 (48,702,500) 0.60 (19,668,000)

Total 6,303,300

Terry Fields, CEO of Spirit commented, "Spirit will be verifying these findings with an independent geologist as soon as possible but these are extraordinary reserve numbers, giving this project a minimum 25 year mine life based on a 1000 ton a day operation."

About Spirit Exploration, Inc.

Spirit Exploration, Inc., a Nevada Corporation, is an exploration stage mining company. Through its 99% owned subsidiary ECUADORGOLDCORP, S.A., Spirit Exploration is in the business of acquiring, exploring and developing mineral (gold, silver, copper) concessions in Ecuador. Spirit is in the process of bringing several mines into production. We have acquired, and we have additional options to acquire, a diverse range of mineral production and exploration properties in Ecuador.

Further information is available on the company website: www.spirit-exploration.com.

Forward-Looking Statements: Certain information and statements included in this release are intended to constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the company to be materially different from any future results, performance, or achievements expressed or implied in such forward-looking statements.

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