King Solomon Mines

30 May 2007

Gold Project Acquisition Adds to King Solomon's Portfolio

King Solomon has acquired a controlling interest in 3 exploration licences totalling approximately 50 square km in the important Chifeng mineral district of Inner Mongolia. The acquisition has been made through its subsidiary Inner Mongolia Plate Mining Co Limited. Plate has entered into an agreement to acquire 85% of the shares in Chifeng Tianfeng Mineral Co. Limited, the current owner of the 3 tenements. The remaining 15% is held by King Solomon director Fu La under a trust agreement for King Solomon.

Mr. Stephen McPhail, the Company's Managing Director, stated that "The acquisition is a significant step forward in the company's strategy of establishing a presence in each of Inner Mongolia's main mining districts. The Chifeng area hosts a considerable number of Au, Ag, Cu, Mo, Pb and Zn mines and prospects. It lies within the North North west trending Yanshanian belt of intrusives and volcanics which further to the south, host a number of significant epithermal gold, porphyry copper and skarn copper deposits."

The acquisition takes in the Bu Dun Hua, Dong Gouzi, and Wang Giaying gold occurrences. Exploration Director Bruce Bell commented that " the principal of the three, the 25 square km Bu Dun Hua project, consists of gold-silver workings in veins within a large hydrothermal alteration system. The veins, varying from 2m to 5m wide, have been prospected and intermittently mined for Au and Ag via adits and shafts. Despite an indication from geophysical surveys (EM and IP) of increasing system strength with depth, there has been no physical exploration below the current near-surface levels apart from two vertical drillholes, one only 25m deep. The system is as at least 1.5+ km long and consists of widespread clay, hematite and pyrite alteration within an acid pyroclastic pile."

He also commented "The Dong Gouzi project is centred on a high-grade narrow vein occurrence from which illegal miners are reputed to be extracting up to 60g/t Au. The Wang Giaying project consists of intermittent open-cut workings along an anastomising fault zone up to 5m wide."

The company has also been active on its projects at Sonid Zuoqi. A drill rig is currently setting up on the Malachite prospect at Wuritu where a recently completed magnetic survey has produced strong anomalies associated with prominent copper mineralization at surface. At the nearby Marmot Ridge copper project, IP anomalies delimited at reconnaissance scale are now being followed up by more detailed surveys aimed at sharpening the target geometries prior to drilling. Reconnaissance exploration is also underway in the company's Sonid South tenements.

About King Solomon Mines

The Company has mining prospects in the semi-autonomous province of Inner Mongolia, China.

World class target area

  • King Solomon is exploring for minerals in the under explored Inner Mongolian section of a major fold belt that hosts world class Gold and Copper deposits.
Strong initial project portfolio

The Company has interests in the following projects

  • Marmot Ridge – Porphyry Copper-Gold prospect along geological trend from the Ivanhoe/RTZ owned Oyu Tolgoi Copper-Gold deposit
  • Wuritu – potential high-grade shear hosted Copper deposit
  • Amoyitele – Magnetite and Copper prospects; Nickel and Lead anomalies
  • Sonid North & South – Regional shear hosted Gold targets
7 years experience in China
  • The Company’s founding directors have worked on minerals projects in China for 7 years
  • Operating infrastructure is established in Inner Mongolia Experienced board and management
  • The Company’s board and management are experienced in exploration and capital raising:
    • John Quinn Chairman (Newcrest, Perserverance)
    • Stephen McPhail MD (Todd, Highlake)
    • Bruce Bell Exec. Dir. (Delta, Highlake)
    • Fu La Exec. Dir.
    • Chris Castle Non Exec Dir. (Widespread, Asian Mineral Resources)

For further information, please contact:
Stephen McPhail, Managing Director
+6421 897 667

John Quinn, Chairman
(0412) 381 081