DSM Drills Good Holes & Outlines Extensive Gold Belt.

Business Editors

TORONTO--(BUSINESS WIRE)--Jan. 21, 2003

DESERT SUN MINING CORP. (TSX.V:DSM) is delineating a major gold district at Jacobina, State of Bahia, Brazil, along what has long been recognized as an extensive geological belt. Phase I of the program comprised twelve NQ diamond drill holes, totaling 2,247 metres, in six initial target areas on DSM's large property position. Significant results have been obtained on all six of these target areas. This press release reports the results of the first six holes in three of the targets, namely the Serra do Corrego, Morro do Cuscuz and Joao Belo Sul. These targets are from 2 to 8 kilometres from the existing Jacobina plant. The drill results, combined with the previous data and drilling at the Joao Belo and Itapicuru mines, indicates a continuous mineralized zone up to 10 kilometres long of low grade, potentially economic material within 50-60 metres of surface, ideal for bulk open pit mining. Although the current drill program consists of shallow holes (less than 100 metres true depth), historical drilling and data from this belt indicates the system runs to a depth of at least 500 metres.

The Company's work to date has also generated a substantial increase in the number of known mineralized zones both along strike from the original mining area and in other parallel areas within the geological belt. DSM is now mapping and sampling the numerous workings of local miners, known as garimpos, (358 at last count) which trace the favorable horizons for up to 100 kilometres along the zones that are being collectively labeled the Bahia Gold Belt.

"The results are encouraging and confirm that we have a continuous, potentially economic large gold belt on our hands that has tremendous upside potential. Previous scoping studies by SRK Consultants confirm that, partly due to the present favourable currency rates in Brazil, we can mine the existing reserves at below U.S. $190 per oz cash cost. The additional expansion of the belt means we may be able to start open pit mining earlier and enhance economics further," said Gerry McCarvill, Chairman of DSM. "In light of the new results, we are in the process of retaining a large consulting firm for a pre-feasibility study on Jacobina and we also plan to significantly expand the drilling program."

The emerging geological picture is one of extensive and repetitive sequences of wide horizons of steeply dipping sedimentary rocks hosting low-grade gold mineralization of sedimentary origin. However, DSM is recognizing that within these beds are high-grade zones that are related to structural features such as shearing and faulting. The gold in these zones show characteristics of a hydrothermal origin, suggesting that there was a secondary influx, or remobilization, of gold along major zones through the rocks. This zone of hydrothermal overprinting extends for over 100 kilometres.

This has major implications for the property as it could likely yield several lower grade, bulk mineable orebodies, similar to the existing Joao Belo open pit and underground mine, as well as several high grade, selective mining operations like the Itapicuru and Canavieiras mines. These three mines produced approximately 700,000 ounces of gold until their closure in 1998 due to the then extremely low gold prices coupled with a strong Brazilian currency. These mine zones currently host all of the 1.4 million ounces of measured and indicated mineral resources and most of the 2.2 million ounces of inferred mineral previously referenced by DSM.

This press release reports on results of six holes along a portion of the Bahia Gold Belt's westernmost stratigraphic horizons, the Serra do Corrego Formation, which hosted the Joao Belo and Itapicuru mines. Three target areas had been selected for drilling, namely; Joao Belo Sul, located 2 kilometres south of the Joao Belo mine; and the Serra do Corrego and Morro do Cuscuz targets, about 5 kilometres to the north and quite close to the existing 3,000 tonne per day processing plant.

Major New Extension of Joao Belo Mine

Two holes, totaling 266 metres, were drilled in the current drill campaign. JBA-292 was drilled 100 metres south of a hole drilled several years ago that returned 2.03 grams gold per tonne over 9.1metres true width, and JBA-293 was drilled 350 metres north of this hole.

JBA-292 intersected 3.75 grams gold per tonne over a true width of 14.6 metres at a depth of about 69 metres below surface. This intersection included a high-grade section of 10.62 grams gold per tonne over 3.6 metres true width.

JBA-293 returned 1.69 grams gold per tonne over a true width of 11.4 meters at a depth of about 94 metres below surface with a higher grade section of 3.68 grams gold per tonne over 2.8 metres true width. Both intersections in JBA-292 and 293 correlate well with surface exposures of the quartz pebble conglomerates that have garimpos along the horizon and are in the same stratigraphic units as the reefs previously mined at Joao Belo. This work establishes more than a 3 kilometre horizontal continuity of the favorable horizon from the Joao Belo open-pit. The underground workings and drilling at Joao Belo, which extended down to 500 metres below the surface, give an indication to the down-dip potential of these rock units. The horizon was still open at the base of the Joao Belo mine.

The mineralized horizons intersected in the holes at Joao Belo Sul continue to the south for an additional 9 kilometres of strike length to the Campo Limpo area. Eight wide spaced holes were previously completed over a strike length of 1000 metres at Campo Limpo in the 1980's that returned several significant results including 3.76 grams gold per tonne over 9.5 metres true width and 2.65 grams gold per tonne over 7.4 metres true width.

Potential Major Open Pittable Zone Identified Near Plant

Serra do Corrego, located 2 kilometres north of the processing plant, is a 900 metre long target zone. Here the reefs form a zone approximately 50 metres wide with extensive garimpos on the surface. Previous drilling focused on the higher-grade portions in the footwall and hanging wall of this zone. Three holes totaling 362 metres were completed to test the grade of the wider zone.

SCO-82 returned 1.29 grams gold per tonne over 36.5 metres true width at an approximate depth below surface of 40 to 50 metres. This intersection included a high-grade portion grading 17.52 grams gold per tonne over 1.8 metres true width or 9.76 grams gold per tonne over 3.4 metres true width.

Hole SCO-80, drilled 50 metres north of SCO-82, returned 0.85 grams gold per tonne over 36.0 metres true width including 4.26 grams gold per tonne over 4.2 metres true width. Hole SCO-81 drilled a further 100 metres north returned 1.66 grams gold per tonne over a true width of 6.1 metres.

The third target area, Morro do Cuscuz is located approximately 300 metres north of the plant in the Itapicuru mine area. Work by DSM identified a 300 metre gap in previous drilling into horizons that are the southern continuations of the same units as at Serra do Corrego. This target was tested by one 208 metres long hole.

MCZ-78 intersected 0.76 grams gold per tonne over 50.8 metres true width including 6.98 grams gold per tonne over 4.0 metres true width.

These results from drilling at Serra do Corrego and Morro do Cuscuz clearly demonstrate that there is excellent potential for defining significant open pittable resources in the reefs which are typically 40 to 50 metres wide. This would apply not only within a few kilometres of the plant but also elsewhere along the 30 kilometre strike length. Previous mining focused only on the higher grade portions of the rock units and the bulk mining potential has not been evaluated.

Dr. Bill Pearson, Vice President of Exploration added, "I am very excited about these results. It is clear that we have identified an emerging gold camp which has the potential to host substantial open pittable as well as higher grade underground gold deposits. We have just scratched the surface with this program but our understanding of the geology and controls on mineralization has significantly increased."

Assaying for the program was carried out by Lakefield Geosol, an ISO 9002 laboratory based in Brazil, using fire assay on 50 gram pulps. Check assaying is routinely carried out, by ALS Chemex in Vancouver, on 10% of sample pulps and 5% of sample rejects. Security is maintained at the core logging and sampling facility. Dr. Bill Pearson, P.Geo. is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the program.

Results are still pending for some of the drill hole and surface samples for the Canavieiras, Maneira and Rio Coxo areas and these results will be released in February. Further results on work in the North Area will be released when additional ground acquisition is completed.

                 TABLE OF SIGNIFICANT DRILLING RESULTS

Hole No.     From (m)  To (m)   Gold   Interval  True Width  Depth
                                (g/t)     (m)        (m)     Below
                                                             Surface(a)
                                                                (m)
JOAO BELO SUL
JBA-292
Dip -58 deg.   104.75   121.20   3.75    16.45      14.6        69
       incl.   108.32   121.20   4.46    12.88      11.5        70
       incl.   112.71   121.20   6.15     8.49       7.6        72
       incl.   115.24   119.29  10.62     4.05       3.6        72

JBA-293
Dip -57 deg.    35.23    36.47   4.92     1.24       1.1        45
                94.07   106.55   1.69    12.48      11.4        94
       Incl.   103.48   106.55   3.68     3.07       2.8        96

SERRA DO CORREGO
SCO-80
Dip -61 deg.    30.85    33.24   0.97     2.39       2.1        25
                59.44   101.32   0.85    41.88      36.0        51
       incl.    62.80    67.62   4.26     4.82       4.2        42

SCO-81
                10.60    16.82   2.23     6.22       5.8        15
Dip -49 deg.    85.18    91.70   1.66     6.52       6.1        61
       Incl.    90.20    91.70   4.99     1.50       1.4        63

SCO-82
Dip -65 deg.    30.25    75.32   1.29    45.07      36.5        39
       incl.    60.68    62.95  17.52     2.27       1.8        49
       incl.    60.68    64.85   9.76     4.17       3.4        50
                97.90   100.33   1.00     2.43       2.0        77

MORRO DO CUSCUZ
MCZ-78
Dip -41 deg.    27.41   190.80   0.76   163.83      50.8        56
       incl.   170.51   183.25   6.98    12.74       4.0        87
       incl.   170.51   189.64   5.04    19.13       5.9        90

(a) depth calculated based on midpoint of intersection

Desert Sun Mining is a Canadian gold exploration and development company listed on the TSX Venture Exchange. (www.desertsunmining.com).

NOTE: A map is available on CCNMatthews' website at: http://172.26.6.82/database/fax/2000/DSM012003.jpg

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