Mindoro acquires remaining interest in Batangas Projects and resumes joint venture negotiations



    EDMONTON, July 2 /CNW Telbec/ - Mindoro Resources Ltd. (TSXV: MIO;
Frankfurt: WKN 906167) is pleased to announce that, through its wholly owned
subsidiary MRL Gold Phils., Inc., Mindoro has entered into a Letter of Intent
with Egerton Gold Philippines, Inc. to acquire the remaining 49% direct and
indirect interest in the company's Batangas Projects, located in southern
Luzon, the Philippines, in exchange for eight million Mindoro shares. Mindoro
previously had the right to earn up to a 75% interest in the Batangas Projects
and was vested at 51%. The acquisition will result in Mindoro acquiring an
immediate 100% direct and indirect interest in the Batangas Projects, as
described in About the Acquisition, below, and opening the door for greater
flexibility in structuring joint ventures; advanced stage negotiations have
resumed with several companies.
    Mindoro's target-rich Batangas tenements cover over 29,000 hectares in
the well-mineralized southern Luzon porphyry copper-gold belt. Projects
include Lobo and Archangel, where early-stage NI 43-101-compliant gold
resources have been defined (SWB and Kay Tanda), which are both open to
upgrading and extension, and at least fifteen promising porphyry copper-gold
prospects, including the Calo, Talahib, Pica and El Paso prospects (see About
the Batangas Prospects below).
    Mindoro has been in advanced joint venture discussions since early 2008
with several parties who have expressed strong interest in funding and
advancing the Batangas Projects. Acquisition of the residual Egerton interest
frees up sufficient equity to attract substantial joint venture partners, and
to leave Mindoro with a significant equity position at the feasibility stage.
    "We are pleased to have acquired the remaining interest in this
target-rich land package. In this resource-hungry world the Batangas Projects
have attracted considerable interest, but negotiations with potential partners
have been on hold for several months pending completion of the Egerton
agreement," noted Tony Climie, CEO of Mindoro. "We can now proceed to
consummate several joint venture deals that would allow multiple exploration
and drilling programs to advance simultaneously in 2008."

    ABOUT THE ACQUISITION

    Under the terms of the Letter of Intent, Mindoro and Egerton will have
90 days to execute a formal agreement, whereupon, subject to regulatory
approval, Mindoro will issue 500,000 shares to Egerton in exchange for an
undivided 24% direct and indirect interest in the Batangas Projects. This
would bring Mindoro's total direct and indirect interest in the Projects to
75%. For the remaining 25% indirect interest of Egerton in the Batangas
Projects, Mindoro will issue a further 7,500,000 shares to Egerton. These
shares would be subject to a hold period with 1,500,000 shares restricted from
trading for six months, two million shares restricted for 12 months, two
million restricted for 18 months and two million restricted for 24 months.
Egerton would also receive a one time payment of US$1,000,000 at the start of
production - applicable to the first deposit to start production only, and
will be granted a one percent net smelter royalty on all metals produced from
the Batangas Projects.

    ABOUT THE BATANGAS PROJECTS

    The Batangas projects encompasses over 29,000 hectares in a recognized
porphyry copper-gold belt. This belt includes the Taysan porphyry copper-gold
deposit of Freeport-McMoRan, adjacent to the Batangas Projects, as well as the
Dizon, Tapian, San Antonio, and Mogpog porphyry copper-gold deposits. The
Batangas Projects includes the following prospects:

    I. PORPHYRY COPPER-GOLD (Cu-Au) PROSPECTS

    1 Pica

    A 2 kilometer (km) by 1.5 km high chargeability anomaly with coincident
    resistivity and magnetic anomalies. Intensely altered andesitic volcanics
    and diorite intrusions. Drill hole Pica 2 confirmed porphyry Cu-Au
    system, intersecting significant mineralization (213 m @ 0.18% Cu,
    0.30 g/t Au, 1.19 g/t Ag)

    2 Calumpang

    Calumpang forms the northern extension of Pica. Strong, high
    chargeability anomaly over 700m by 600m, with coincident resistivity and
    magnetic anomalies. Intense argillic to advanced argillic-altered
    andesitic volcanics.

    3 Camo

    Moderate chargeability anomaly, not yet closed off. Structurally-
    controlled phyllic alteration in andesitic volcanics associated with
    greater than 0.1% Cu mineralization in narrow zones of several m wide.
    Proximal high-sulphidation epithermal vein breccia mineralization and
    intrusive diorite dykes suggest a porphyry target at depth.

    4 Talon-Balibago

    An 800m by 600m high chargeability anomaly with coincident resistivity
    anomaly; low mag anomaly also present (this is similar to the geophysical
    expression of the Taysan Porphyry Cu-Au Deposit). Strongly altered
    andesitic volcanics with multi-phase intrusive stocks. Two reconnaissance
    diamond drill holes 500m apart drilled in 2006. The holes intersected
    porphyry-related alteration that varies from argillic, sericite-clay-
    chlorite (SCC) overprinting propylitic alteration. Weak to moderate
    sulphides including pyrite, minor chalcopyrite, covellite, and bornite
    associated with galena and sphalerite. The holes bottomed at 500m-the
    rig's capacity.

    5 Kay Tanda

    Associated with Kay Tanda are strong coinciding chargeability and
    resistivity anomalies. Intensely silicified volcanics (silica cap?) in
    places with mineralized, multi-phase intrusives at depth. Deeper drilling
    below the epithermal Au resource intersected porphyry-related phyllic
    alteration at depth and disseminated and veinlet chalcopyrite +/-
    molybdenite mineralization, anhydrite and gypsum veining. An outcrop and
    boulders of potassic-altered diorite mapped immediately northwest of
    Pulang Lupa.

    6 Lumbangan

    500m by 300m moderate to high chargeability anomaly with coincident
    resistivity anomaly. Strong phyllic overprinted by high temperature
    illite (PIMA) alteration with significant Cu, Au and Ag values in
    trenches. Alteration and mineralization suggest porphyry Cu-Au target at
    shallow depth.

    7 Marita-Agas

    Marita-Agas is a 1km by 0.7km chargeability and resistivity anomalies
    with intense phyllic overprinted by argillic alteration. Strongly
    oxidized quartz-sulphides stockworks with significant Cu values from
    channel samples. PIMA analysis over outcrops in Marita shows illitic
    alteration with coinciding arcuate jarosite zone. Jarosite signifies
    weathering of sulphides and is commonly seen in porphyry systems. The
    intense alteration (showing zonation in places) and quartz veining, with
    coincident Cu showings within strong IP anomalies, suggest a porphyry
    system at shallow depths.

    8 Kalabasa-Bootin

    High chargeability anomaly coincident with strong phyllic, argillic to
    advanced argillic alteration. Outcrops of silica cap and hydrothermal
    breccia pipe with pyrite-rich matrix. Channel samples from altered zone
    yielded significant Cu and Au values. Near-surface epithermal Au target
    with porphyry target interpreted at shallow depth.

    9 El-Paso Hill

    Very favourable structural setting, 12km from Phelps Dodge Taysan
    Porphyry Cu-Au Deposit. Younger andesite porphyries intrude older San
    Juan hornblende quartz diorite and metavolcanic rocks. The younger
    intrusives form prominent topographic peaks, are phyllic-altered, and
    associated with weak to moderate chargeability anomalies. Extensive Cu
    mineralization associated with the andesite porphyry confirmed by
    trenching with over 10 trenches, many with lengths (greater than) 20m,
    gave excellent values in the range of up to 5.69% Cu, 1.02 g/t Au and
    24.10 g/t Ag. Orientation soil geochemistry line has defined strong and
    extensive Cu-in-soil anomalies.

    10 Calantas

    Strong chargeability anomaly defined over more than 1km by 500m; open to
    the east, and with coincident resistivity highs. Petrography confirmed
    porphyry Cu-related hydrothermal alteration, varying from quartz-
    sericite-chlorite to SCC affecting the younger medium-grained hornblende
    quartz diorite intrusive. This younger intrusive is believed to intrude
    the older San Juan hornblende quartz diorite and metavolcanic rocks.
    Quartz stringers +/-bornite and magnetite stringers +/-chalcopyrite are
    present in the younger intrusive. Within the metavolcanics, a +15-m long
    outcrop channel sample assayed 0.24% Cu, while a trench sample gave
    0.14 g/t Au, 0.88 % Cu and 57 ppm Mo over 15 meters. Another 10-m long
    channel sample from an outcrop of the medium grained diorite gave
    806 ppm molybdenum (Mo).

    11 Mulawin

    Large, strong chargeability anomaly measuring approximately 1km by 2 km.
    Similar to Calantas, the area is underlain by altered medium-grained
    hornblende quartz diorite that believes to intrude the older San Juan
    hornblende quartz diorite and fine-grained metalvolcanics. The medium
    grained diorite is variably altered to quartz-chlorite-sericite-epidote
    (SCC) and more texture-destructive quartz-clay-sericite-pyrite
    (intermediate argillic) with associated fracture fill malachite and
    azurite (after sulphides), minor pyrite-chalcopyrite specks and locally
    occurring magnetite stringers/veinlets. Copper in soil gives up to
    1000 ppm in places.

    12 Santol Hill

    Partly covered by moderate chargeability anomaly. Surface mapping
    identified younger fine to medium grained diorite outcrops altered to
    quartz-sericite-chlorite-pyrite (phyllic) with associated significant
    pyrite (up to 5%) and minor chalcopyrite along micro fractures.

    13 Calo

    A cluster of unusually large chargeability anomalies measuring at least
    4km by 6 km in extent overlain by younger cover rocks. The anomalies are
    interpreted to be related to sulphides associated with porphyry Cu-Au
    mineralization. High-sulphidation epithermal Cu-Au showings, along with
    advanced argillic alteration - which are usually indicative of proximity
    to porphyry mineralization in the Philippines - as well as diatreme
    breccias and porphyry-type alteration, occur around the margins of the
    chargeability anomalies, and in erosional windows. Seven scout drill
    holes were drilled in this large area and all bottomed in unmineralized
    zones, except hole 7 which intersected transported clasts of porphyry
    copper mineralization in a lithic tuff.

    Potassic-altered dirorite and chlorite-clay-altered volcanic clasts
    contain up to 1% chalcopyrite and are believed to have been transported a
    relatively short distance from source. This new porphyry mineralization
    occurrence, along with Freeport McMoRan's Taysan porphyry Cu-Au prospect
    8km to the north, and the Pica porphyry Cu-Au prospect 4km to the south,
    are confirming the potential of the very large target area for a cluster
    of porphyry Cu-Au deposits.

    14 Palacpac

    Potassic-altered medium grained diorite intrusives with abundant Cu-Au
    showings. Boulders of quartz-clay-pyrite altered rock fragments common on
    ridges and spurs. Interpreted as partly eroded porphyry Cu-Au system.

    15 San Nicolas

    Reconnaissance to semi-detailed mapping identified hydrothermal breccias
    and quartz-clay-pyrite (argillic) altered outcrops with associated
    malachite staining and minor chalcopyrite. Structurally controlled SCC
    alteration, with copper showings, in metavolcanics and younger intrusives
    also mapped. The younger intrusives include andesite porphyry and medium
    grained diorite that grades to medium grained hornblende quartz diorite.
    Quartz-chlorite-sericite-epidote-pyrite (QSC) and chlorite-sericite-
    quartz (SCC) common replacement within the younger intrusives.

    16 Talahib

    Reconnaissance work has identified significant Cu and Au mineralization
    in hydrothermal breccias in area of phyllic alteration. Stream sediment
    samples analyzed up to 650 ppm Cu and 468 ppb Au. Rock channel samples
    include 6% Cu over 20m; 1.66 g/t Au over 10m, 1.80% lead (Pb) over 20m,
    2.5% zinc (Zn) over 20m; and 143 ppm Mo over 20m.


    II. EPITHERMAL GOLD (Au) PROSPECTS

    1 Kay Tanda

    Epithermal Au-Ag mineralization at Kay Tanda is associated with extensive
    and intense quartz stockworks, veins and hydrothermal breccias, with
    accompanying base metal sulphides. Kay Tanda is reflected by an induced
    polarization chargeability anomaly that is about 1.5km by 1.4km in
    extent, which is part of a much larger chargeability anomaly which
    extends over 6km along strike to the NE. To date, drilling has been
    conducted only on the Kay Tanda part of the trend.

    Mindoro has completed 147 reverse circulation (RC) and 26 core drill
    holes at Kay Tanda. Almost all holes have encountered near-surface,
    generally flat-lying to gently- dipping blanket-like low-grade stockwork
    mineralization. This is strongly to partially oxidized to depths of 40 to
    160m and non-oxide below this. Drilling, especially at deeper levels, has
    encountered at least 5 steeply-dipping, much higher-grade zones with
    bonanza grades to 246 g/t Au and over 1,000 g/t Ag, which are interpreted
    as structurally controlled upflow, or "feeder" zones.

    Structural studies are in progress to determine the nature and controls
    of the high-grade zones, and the latest hole (KTDH-24) has helped
    considerably in this regard. The high- grade mineralization appears to
    occur preferentially at elevations below 250m (ASL) interpreted to be a
    paleo-boiling zone. Few holes have penetrated to this depth to date. Such
    upflow zones can be associated with bonanza mineralization and constitute
    some of the world's best epithermal Au-Ag deposits.

    Examples of high grade intercepts include: 52m in Hole KTDH 04 with
    11.50 g/t Au and 1.40 g/t Ag including 21.3m of 23.50 g/t Au and
    2.07 g/t Ag; 61.0m in Hole KTDH 20 with 5.12 g/t Au and 0.98 g/t Ag
    including 1.0m of 246.41 g/t Au and 2.15 g/t Ag; and 99.20m in Hole
    KTDH 24 with 2.72 g/t Au and 1.03 g/t Ag including 1.0m of 192.09 g/t Au
    and 1.70 g/t Ag.

    To date, 40%-67 % of the previously defined Exploration Target, at a cut-
    off of 0.5 g/t Au, has been converted to resources. Summary results are:

    
      Total Inferred Resource: 11,599,000 @ 0.70 g/t Au, 3.0 g/t Ag
      (262,000 contained oz Au);
      Total Indicated Resource: 3,365,000 @ 0.88 g/t Au, 8.0 g/t Ag
      (95,000 contained oz Au)
    

    2 SW Breccia

    Past work outlined from 5 to 7km of NE-trending vein/breccia trends on
    the Lobo Project. Mineralization along these epithermal trends occurs as
    both low-sulphidation Au and high-sulphidation Cu-Ag, with lesser Au
    mineralization shoots. Two such mineralization shoots are SW Breccia,
    where Mindoro has drill-defined a near-surface Au resource and the old
    Lobo Mine, where Cu was mined during the 1960s. The SW Breccia
    vein/breccia trend is open in two directions. High Au-Cu-Ag values occur
    at surface in a number of areas along these trends. There are likely
    other mineralization-shoots not exposed at surface that will require
    drilling to discover. 25 drill holes completed by Mindoro from 2003-2004
    defined an National Instrument (NI) 43-101 compliant indicated resource
    of 270,000 tonnes at 6.49 g/t Au containing 56,380 ounces (oz) Au and
    additional inferred resource of 61,000 tonnes at 5.35 g/t Au containing
    10,540 oz Au.

    Programs are carried out under the supervision of Tony Climie, P.Geol.,
CEO and COO of Mindoro, who is a qualified person as defined by National
Instrument 43-101 and who is responsible for the technical disclosures in this
release.

    ABOUT MINDORO

    Mindoro is a Tier 1 Issuer trading on the TSX Venture Exchange (MIO) and
the Frankfurt Stock Exchange (WKN 906167). Mindoro has initial 43-101
compliant resources on the Kay Tanda gold-silver project and on the Agata
nickel laterite project. The company has also identified 22 porphyry
copper-gold prospects in the Philippines and is currently involved in several
advanced joint venture discussions.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.

    This release may contain forward-looking statements including
management's assessments of future plans and operations, and expectations of
future production. These statements are based on current expectations that
involve a number of risks and uncertainties, which could cause actual results
to differ materially from those anticipated. These risks include, but are not
limited to, the risks associated with the mining and exploration industry
(e.g. operational risks in development, exploration and production; delays or
changes in plans with respect to exploration or development projects or
capital expenditures; the uncertainty of reserve estimates; the uncertainty of
estimates and projections relating to production). The assumptions used in the
preparation of such statements, although considered reasonable at the time of
preparation, may prove to be imprecise and, as such, undue reliance should not
be placed on forward-looking statements.




For further information:

For further information: Investor Relations - Canada: Mindoro Resources
Ltd.: Penny Gould, President: penny@mindoro.com, (780) 413-8187, Toll Free:
1-877-413-8187, www.mindoro.com; Renmark Financial Communications Inc.:
Barbara Komorowski: bkomorowski@renmarkfinancial.com; Jason Roy:
jroy@renmarkfinancial.com, (514) 939-3989, Fax: (514) 939-3717,
www.renmarkfinancial.com; Investor Relations - Europe: Richard Mayr:
info@argentuminvest.com, Argentuminvest GmbH, +49-9421-785250, Fax:
+49-9421-785255

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