Cash Minerals Ltd. TSX VENTURE : CHX

December 07, 2005 08:50 ET

Cash Minerals Plans New Exploration Targets To Expand Yukon Coal Reserves And Evaluates Coal Liquefication Projects

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 7, 2005) - Cash Minerals Ltd. (TSX VENTURE:CHX) announced that it has budgeted $736,000 for further coal exploration of the Braeburn and Carmacks areas in southwest Yukon, with a view to expand its coal resources. To date, coal exploration has been focused primarily on the Division Mountain deposit in the Braeburn area of the Coal Exploration Leases.

Basil Botha, President and CEO, stated "Cash Minerals' Division Mountain coal resource currently occupies only 5% of our coal properties in the area. Massive exploration and expansion potential exists on our property covering approximately 4,000 square kilometres and the 2006 drill program will make significant progress to enhance our data position here."

The 2006 exploration program includes drilling in eight target zones in the Whitehorse Trough and includes twenty-three drill holes, each of approximately 200 metres. The four target zones in the Braeburn area are the Nordenskiold River, Klusha Valley, Corduroy Mountain and Hull Mountain areas. Initial geological mapping and previous drilling and trenching indicate that coal of similar or better quality to Division Mountain may be present in one or more of these areas. The four target zones in the Carmacks area are the Tantalus Butte Mine, Five Finger Mountain, Horsefall Hills and Lone Pine Mountain areas. Information from previous mining and exploration activities indicates that coking and/or PCI quality coal may be present in one or more of these areas.

To view a map that outlines the exploration target locations please visit the Company's website and click on Projects.

Cash Minerals is also evaluating coal liquefaction projects; one to produce clean-burning liquid transportation fuels using Fischer-Tropsch technology and a second one to study a potential coal to methanol project in Inner Mongolia in which the company could become a partner. To support these evaluations, Cash Minerals has commissioned a conceptual study to develop information on the viability of the coal to Fischer-Tropsch liquids at plant capacities of approximately 12,000 and 50,000 barrels per day. Proven conversion methods include Fischer-Tropsch technology. Fischer-Tropsch technology has been utilized for over fifty years by Sasol in South Africa, who produce over 150,000 barrels of fuel per day from coal. Methanol is produced from a wide variety of hydrocarbon feeds in numerous plants throughout the world. Mr. Martin J. Van Sickels of MVS Consulting LLC has been retained to conduct the conceptual study of the Fischer-Tropsch base plants and to perform due diligence on the methanol project in Inner Mongolia. Mr. Van Sickels has extensive experience in the field of petrochemicals, refining and synthetic fuels. Prior to forming MVS Consulting, Mr. Van Sickels was Vice President and Chief Technology Officer for Kellogg Brown and Root, Inc. (KBR), one of the world's leading engineers and constructors of petrochemical, refinery and liquefied natural gas plants.

Mr. Botha continued "With the projected world-wide increase in energy demand, it is anticipated that alternative fuels such as clean-burning Fischer-Tropsch liquids will continue to gain strategic importance, which is why Cash Minerals is studying these opportunities. In particular, the project in Inner Mongolia may have the potential to be an important future source for alternative fuels and is one of more than six projects that are currently under evaluation in China."

About Cash Minerals Ltd.

Cash Minerals has a two-pronged exploration and development focus in the Yukon. Its Division Mountain Coal Project's five Coal leases measure 776.4 hectares and the 30 Coal Exploration Licenses cover approximately 360,000 hectares in coal-bearing stratigraphy. A recently completed NI 43-101 Report on the Project by T. C. Becker, B.Sc., P.Geo. of Norwest Group (first reported by the Company on March 31, 2005 and filed as a technical report on SEDAR on April 1, 2005) confirms resources of 38.6 million tonnes (Measured) and 13.0 million tonnes (Indicated) and a full bankable feasibility study is nearing completion.

Cash's uranium exploration projects boast major stakes in eight quality projects (Yukon and western Quebec). Four of the projects host Olympic Dam-type mineralization and two are modeled after the prolific Rossing Deposit in South Africa and one is testing possible unconformity-related, high grade, vein-and-fracture-controlled uranium mineralization. Cash Minerals Ltd. (www.cashminerals.com) is an emerging energy resource company listed on the TSX Venture Exchange under the symbol "CHX" and has approximately 60.0 million shares issued and outstanding.

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