Absolut Resources Inc: Strategic Alliance With Monterrico Metals On Emerging Gold Belt In Central Peru; Drilling Underway At Pico Machay.

TORONTO -- Absolut Resources Inc ("Absolut" ) (ABS.TSX.v) and Monterrico Metals ("Monterrico") (MNA.LSE) are pleased to announce the Ferro Corteza Gold Alliance ; a joint initiative for precious metal exploration within a 25km wide corridor of prospective geology bearing northwest and bound to the north and south by Monterrico's Carisla and Pico Machay projects.

E[acute accent]Carisla Gold project (New acquisition)

E[acute accent]Monterrico has signed a Letter of Intent granting Absolut the option to earn up to a 75% interest in the Carisla high-sulphidation epithermal gold project. Absolut may vest an initial 60% interest by spending a minimum of $2,000,000 on exploration over four years, with an option to secure a further 15% interest by spending a cumulative $4,000,000 on exploration within five years.

E[acute accent]Newcrest Mining Limited ("Newcrest") operated Carisla from 1996 to 1999 through an option agreement with the Peruvian subsidiary of Queenstake Resources that Monterrico acquired in 2001. Newcrest identified three target styles and managed to drill two of these with 15 widely-spaced holes totaling 2,346 meters. Results were low grade but anomalous in gold (and copper).

E[acute accent]The host rocks to the mineralization are layered Tertiary volcanic sediments, andesite flows and sills, strongly altered in places to a high-sulphidation silicia-clay-alunite assemblage. Altered rocks are intruded by a mineralized dacite porphyry rock. Small polymetallic veins containing quartz, galena, sphalerite and stibnite cut altered volcanic rocks adjacent to the porphyry stock.

E[acute accent]Absolut will immediately focus on the untested Cerro Carisla target which is interpreted as a package of shallow dipping vuggy silica altered pyroclastics cut by series of steep dipping quartz-clay-alunite ribs. Conditional to the terms of the agreement, Absolut have the obligation to drill a minimum 1,000 meters within 12 months.

E[acute accent]Pico Machay Property (Update)

E[acute accent]Absolut currently operates the Pico Machay gold project via an option agreement with Monterrico to earn up to a 75% interest in the property. Both parties have exchanged final amendments to convert the original Letter of Intent into a formal Joint Venture Agreement.

E[acute accent]Absolut completed the Phase I drilling campaign and reported the results from the six new holes (990m). See ABS press release 08 July 2004. As a result of the impressive, near-surface gold assays, Absolut secured a C$3,365,000 capital raising to advance the project. See ABS press release 09 July 2004.

E[acute accent]Absolut wishes to announce that a Phase II program, consisting of approximately 20 holes or 3,000 meters of percussion drilling commenced at Pico Machay on 02 October.

E[acute accent]Absolut's President & CEO, Dan Noone, when asked about the Ferro Corteza joint venture, Mr. Noone said, "We are pleased to expand our working relationship with Monterrico via a mechanism to unlock value by pooling mutual resources in parallel to regional reconnaissance in an emerging gold belt. We are also pleased that a second round of drilling has begun at Pico Machay. This drilling is designed to step out from the previous 1st phase as well as test a number of additional geophysical targets that occur on the project"

E[acute accent]Absolut Resources Corp. is a precious metals exploration and development company based in Toronto, Canada. The Company's primary asset is the Pico Machay Gold Project, Peru. The project's geological features are comparable to other established mines in the Peru. Absolut strongly believes in an international best practices approach, and implements this on a company wide basis for all its social and environmental decisions.

For inquiries please contact:

Absolut Resources Corp.
Exchange Tower
130 King St West, Suite 3680 Box 99
Toronto, Ontario, M5X 1B1

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

E[acute accent]ABSOLUT RESOURCES CORP. (TSX VENTURE:ABS)