Cambridge Mineral Resources plc Announces Exercise of Option to Acquire Patacancha Gold Claims in Peru.

BRISTOL, England -- Cambridge Mineral Resources plc (LSE:CMR)("Cambridge" or "the Company") is pleased to announce that it has exercised an option to acquire a 50 per cent equity interest in the Patacancha project located in the gold-rich Ayacucho volcanic belt of southern Peru. Cambridge's Peruvian subsidiary, Minera Peru Gold SAC, and its operating partner, Minera Argento SRL, have formed a new joint venture company, Minera Sucre S.A., which will direct the production, development and exploration of the Patacancha claim group.

A production management company has been appointed and bids are currently being received from contract mining groups. In addition, negotiations are underway with relevant parties to determine whether initial ore production will be sold at the mine head or trucked and toll processed at a nearby facility.

The Patacancha claim group covers approximately 15 square kilometers and is characterised by high-grade precious metal veins and breccias. The Marcelita-2 vein, averaging one meter in width with average grades exceeding 16 g/t Au and 100 g/t Ag, will be the first target for development. The mineralization outcrops on surface and extends to a known depth of 70 meters remaining open ended. Surface sampling over the Marcelita-2 vein returned values up to 1.30 metres of 45 g/t Au.

Production will commence following selection of a contract mining company. Initial development and production on the Marcelita-2 vein will consist of two raises from the access level to the surface where the highest grades have been encountered to date. Project advancement will be similar to other small mine operations in Peru where development headings will provide the initial production.

Multiple additional veins and breccias on the claim group will be explored concurrently with development and production at Marcelita-2. Additionally, porphyry copper potential has been recognized on the claim group and is being evaluated. New gold targets currently under evaluation include the following zones with their respective surface sample results:

Veta Rasuhuilca         2.40 metres at 26 g/t Au and 11 oz/t Ag
Veta Punto Triple       0.60 metres at 75 g/t Au
Veta Baritina           0.61 metres at 13 g/t Au and 17 oz/t Ag

Cambridge's Chairman, Michael Thomsen, stated today in London: "We are very pleased to advance our partnership with Minera Argento in developing the Marcelita-2 gold deposit. This will represent the first gold production for the Company and we expect this purchase of equity in the Patacancha gold claims to be followed by further acquisitions in Peru and elsewhere."

Ore samples and technical information from the project will be displayed at the Prospectors and Developers Conference in Toronto, Canada on March 6 and 7. The Marcelita gold deposit will be displayed at the Core Shack located on the lower level of the Toronto Convention Centre.

A technical summary of the Patacancha project has been posted on the Company's website at www.cambmin.co.uk

Cambridge Mineral Resources plc (LSE:CMR)

Cambridge Mineral Resources plc (LSE:CMR)