May 16, 2005

Mano River Awarded Licences Over High Grade Kimberlite Dykes in Guinea and Signs Related Agreement with De Beers

  • Ex-De Beers licences awarded covering 405km2 in south-east Guinea
  • Agreement signed with De Beers for access to their exploration and modelling database, in exchange for cash payment and 2% production royalty
  • Four diamondiferous kimberlite dykes already identified by De Beers within licences
  • Grade modelling generated from De Beers’ microdiamond data indicates an average +1.5mm diamond grade between 100 and 230cpht

Mano River Resources Inc. (“Mano”) is pleased to announce that it has been awarded three contiguous exclusive exploration licences, covering a total of 405km2 in area, centred over the diamond producing town of Bouro in the Kerouane district of south eastern Guinea. The Bouro area, together with the Banankoro area immediately to the north, is one of the most prolific diamond producing areas of Guinea.

The licences are linked to an agreement with De Beers, the previous licence holders, who have agreed to cede to Mano their exploration and modelling data over the licences in return for a nominal cash payment and a 2% gross royalty on future diamonds sales. Mano retains 100% marketing rights for diamonds produced.

A review of the De Beers exploration data shows that:

  • The licences are host to four extensive diamond-bearing kimberlite dyke complexes.
  • One dyke, designated Bouro North, has been mapped and drilled discontinuously over a strike length of 5km.
  • Micro-diamond sampling by De Beers yielded excellent results, with 11 samples totalling 1,920kg being collected from along the strike length of the Bouro North kimberlite. These samples yielded 4,635 diamonds totalling 10.44 carats, including a large proportion of commercial sized diamonds in the +1.0mm and +2.0mm size fractions. Table 1 summarises the micro-diamond data.
  • Statistical modelling using the microdiamond data obtained from De Beers suggests that the Bouro North kimberlite could have an average +1.5mm macro-diamond grade between 100 and 230 carats per hundred tonnes.
  • Many kimberlite indicator anomalies remain unresolved, a number of which have high interest mineral chemistry.

Mano’s President and CEO, Dr. Tom Elder, comments: “Through Mano’s excellent relationship with the Guinean Ministry of Mines, and De Beers, the Company has been able to secure these exploration licences after De Beers had relinquished them. Mano also negotiated a royalty agreement with De Beers in return for exclusive access to its very extensive exploration and modelling database over these licences. This will save Mano a great deal of time and money in its follow-up programme. The Company now intends to advance exploration of the unresolved anomalies with the objective of discovering any associated blows or pipes and, at the same time, undertake a bulk sampling evaluation programme over the high grade Bouro North kimberlite, in order to determine its macro-diamond grade and value.”

The Company considers the acquisition of these three licences to be important additions to its current excellent portfolio of diamond and gold properties in the Mano River Union region.

About Mano

Mano is a well-funded exploration company focused on the discovery of diamond and gold deposits in the Archaean terrain of the highly prospective, under-explored, West African Mano River Union countries of Liberia, Sierra Leone, and Guinea. Mano considers the region has the potential to develop into a world-class diamond and gold-mining province. The Company has over 25,000km2 under licence, close to one million ounces of gold in resource, a cluster of diamondiferous kimberlite pipes in Liberia and joint ventures in place with BHP Billiton, Trans Hex Group, Crown (Petra) Diamonds, Golden Star and Navasota, which, if they are all fully exercised, would see a total of over US$16m in third party expenditure on Mano’s properties. With increasing market recognition of the recent positive evolution in the regional politics, Mano is starting to capitalise on its position as the pre-eminent diamond and gold explorer in the sub-region.

On behalf of the Board of Mano River Resources Inc.
Tom Elder
President and CEO

For further information on Mano River Resources and its exploration programme, you are invited to visit the Company’s website at www.manoriver.com or contact one of the following:

Tom Elder
President and CEO
UK +44 (0) 1235 810 740

Raz Hussein
Controller
Canada +1 (604) 689 1700

Gary Middleton
St Swithins
UK +44 (0)207 929 4391

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