Canadian Mining Completes Option and Joint Venture Agreement on Bullard Pass Gold Project to Focus on Development of Zeolite Property

Symbol:  CNG - TSX.V

VANCOUVER, July 5, 2012 /CNW/ - Further to Canadian Mining's news release dated May 7, 2012, President and CEO, Ray Paquette is pleased to announce that the Company has finalized and entered into an Option and Joint Venture Agreement (the "Agreement") with Aureus Resources Inc. ("Aureus") on the Company's Bullard Pass Gold Project ("Bullard Pass").  The NI 43-101 compliant Bullard Pass Gold Project represents a project of merit for Aureus.

The Agreement provides that Aureus Resources can acquire an undivided 60% interest in the Bullard Pass Gold Project by issuing Canadian Mining an aggregate of 2,400,000 common shares in its capital stock and incurring a total of $1,250,000 in exploration expenditures on the Bullard Pass Gold Project.  Thereafter Aureus may elect to form a 60/40 joint venture with Canadian Mining to further explore and develop the Bullard Pass, or purchase Canadian Mining's remaining 40% interest by the payment of US $750,000.

Upon Aureus Resources having earned a 100% undivided interest in the Bullard Pass Gold Project, Aureus will be subject to a 2% Net Smelter Royalty (NSR) due to Canadian Mining.  The NSR may be purchased by Aureus in 1% increments for the amount of US $1,000,000 per each 1% increment. Aureus has also agreed to pay the 2012 Bureau of Land Management maintenance fees and assume all land payments to the Bureau of Land Management through to the joint venture.

The Bullard Pass property is in the vicinity of the Harcuvar and Harquahala Mountains in Arizona.  In 1992, the Arizona Geological Survey Open-File Report 92-1 stated, "the mineralogic and structural similarities of the Bullard Pass and Copperstone districts suggests that potential exists for a major gold deposit in the area of the Bullard district."

President and CEO, Ray Paquette, stated; "we are pleased to have completed the Agreement and are looking forward to working with Ian Lambert and the management team at Aureus.  Their experience in exploring and developing precious metals properties provides Canadian Mining confidence in their abilities to realize the full potential of the Bullard property.  This Agreement will enable Canadian Mining to free up capital and focus our full attention on the further development of the Sun Group Zeolite Project in British Columbia which is presently garnering worldwide attention."

On behalf of the Board                                                            
Ray Paquette CEO 

Zachary Puznak Investor Relations

Please see our web site for additional details:

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Canadian Mining Company Inc.

For further information:

Ray Paquette CEO 

Zachary Puznak Investor Relations

Profil de l'entreprise

Canadian Mining Company Inc.

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