Sunburst Acquisitions IV, Inc.
OTC Bulletin Board : SBAQ

Sunburst Acquisitions IV, Inc.

August 25, 2005 16:52 ET

Sunburst Successfully Restructures its Property Rights and Seeks Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 25, 2005) - Sunburst Acquisitions IV, Inc. ("the Company") (OTCBB:SBAQ) is pleased to report that the Company has successfully restructured its rights to properties in Mexico.

The restructuring entailed incorporating a wholly-owned subsidiary, Sunburst de Mexico, S.A. de C.V. ("Sunburst Mexico"), which allowed the Company to take direct title to properties previously held beneficially through a joint venture with Minero Rio Tinto, S.A. de C.V. ("MRT").

Pursuant to the current agreements signed, the Company received an increased ownership of the Cieneguita concessions from 60% to 100% ownership, an option to purchase 7 of the Guazaparez concessions, two Encino Gordo concessions and the right of first refusal on two other Encino Gordo concessions from MRT.
All other interests were included in a previous joint venture agreement between Sierra Minerals and Mining, Inc, the Company's Nevada subsidiary, and MRT, which was attached as an exhibit to the Company's 8-K filing made on June 3, 2004. This joint venture has been superceded and replaced by the current agreements.

As part of this restructuring, Sunburst must adhere to certain funding requirements including providing a loan of US$1 million to Sunburst Mexico by December 31, 2005 and a further loan of US$1 million by April 30, 2006. These funds will be used for exploration or development expenditures on Sunburst Mexico's concessions. Failure to adhere to the schedule will allow MRT to acquire up to 100% of all outstanding shares of Sunburst Mexico for nominal consideration.

As consideration for these acquisitions, the Company agreed to issue 5 million shares to MRT (or its assignee) at the time of the transaction, and an additional 5 million shares at the time the Cieneguita property reaches production of 15,000 ounces of gold per year.

Sunburst is also seeking additional funds to payout its debenture holders by September 1, 2005, as recently announced.

On Behalf of the Board of Directors,

SUNBURST ACQUISITIONS IV, INC.

Terry Fields, President

The Private Securities Litigation Reform Act of 1955 provides a "Safe harbor" for forward-looking statements. Certain of the statements contained herein, which are not historical facts, are forward-looking statements with respect to events, the occurrence of which involved risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the company is detailed from time to time in the company's reports filed with the Securities and Exchange Commission.

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