Continental Inks Revised Xietongmen Agreement.

VANCOUVER, British Columbia -- Continental Minerals Corporation (TSX VENTURE: KMK)(OTCBB: KMKLF)

Ronald W. Thiessen, President and CEO of Continental Minerals Corporation is pleased to announce that Continental has signed a revised formal agreement (the "Formal Agreement") in connection with its previously announced option to earn a controlling interest in the Xietongmen Gold-Copper Property. The Xietongmen Property is located 240 kilometres southwest of Lhasa in Tibet, People's Republic of China ("PRC"). The Formal Agreement supersedes the February 2004 interim option and is subject to Canadian regulatory approvals.

The Formal Agreement reflects a revision of the legal structure of the transaction as a consequence of a reorganization of the property optionors, which are affiliates of China NetTV Holdings Inc., the original optionor. Under the Formal Agreement, Continental has acquired options to purchase 50% or 60% of the shares of Highland Mining Inc. ("Highland"), the British Virgin Islands parent company of the private Chinese corporation which owns the property, Tibet Tianyuan Minerals Exploration Ltd. The option exercise price is the same as previously announced, which is a total of US$7 million for 50% (or US$10 million for 60%), payable as to US$2 million for 50% of the currently outstanding Highland shares, providing that Continental completes a further investment of US$5 million in Highland to fund exploration of the Xietongmen Project. Continental can increase its interest in Highland to 60% within the following year through the investment of a further US$3 million in Highland to fund exploration. In order to exercise the option to acquire 50% of Highland, the first US$2 million is required to be paid as to US$1.2 million on regulatory approval and the US$800,000 balance one year later. The next US$3 million must be funded by November 9, 2005, and the final US$2 million funded by November 9, 2006. Continental will primarily manage Highland during the option period, subject to a shareholders' agreement with the other shareholders of Highland. Once the option is exercised, further equity and/or loan funding of Highland, as the project warrants, would be proportional to interests held in the project, with a proportionate reduction in shareholdings of any shareholder which fails to match the funding of the others. If the other parties' shareholdings in Highland fall below 15%, those parties may elect to convert their holdings to an entitlement to 12.5% of the after pay-back profits of Highland. The parties have allowed 90 days to obtain the requisite Canadian approvals and to complete further documents.

The Xietongmen Property hosts disseminated and stockwork gold and copper mineralization. A four kilometre long alteration zone has been tested by two vertical diamond drill holes and a 200-metre long underground adit completed by previous PRC operators. Long continuous intervals of gold and copper mineralization with good grades were encountered in drill hole ZK0301 - 235 metres @ 0.58 g/t Au and 0.47% Cu, drill hole ZK0701 - 207 metres @ 1.43 g/t Au and 0.68% Cu and a cross-cut accessed by adit PD 04 - 76 metres @ 1.91 g/t Au and 1.23% Cu, respectively. The alteration zone is open in all directions, indicating excellent potential to outline a higher-grade porphyry-style mineral deposit.

ON BEHALF OF THE BOARD OF DIRECTORS

Ronald W. Thiessen, President & CEO

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continuing availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's Annual Information Form in Canada and its annual filing on Form 20-F with the United States Securities Commission.

No regulatory authority has approved or disapproved the information contained in this news release.