DSM Hires SNC Lavalin & Dynatec for Jacobina Pre-Feasibility.

Business Editors

TORONTO--(BUSINESS WIRE)--Jan. 28, 2003

Desert Sun Mining Corp. (TSX VENTURE:DSM) has entered into a contract with SNC-Lavalin Engineers & Constructors Inc., to complete a pre-feasibility study on the Jacobina Mine in northeastern Brazil. The Jacobina mine area includes three past producers known as the Itapicuru, Joao Belo and Canavieiras mines which collectively produces 700,000 ounces of gold primarily from 1983 to 1998. These mines, which are located in the southern part of the Bahia Gold Belt, 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 resource previously referenced by DSM and reviewed by Micon International Limited. There is a processing plant at the site with one million tonne per year capacity.

The preliminary scoping study on Jacobina was completed by SRK Consultants Inc. This indicated that at US$300 gold, the mine was economic and could produce at the rate of 73,000 ounces per year at a cash cost of US$188/ounce, based on the current resource and infrastructure with start up capital expenditure of US$16 million. The current limitation is the plant capacity. Expansion of the plant should lead to a higher production rate.

SNC-Lavalin will now advance this project by completing a pre-feasibility that will determine the capital and operating costs and develop a detailed time line to put the mine into production. The capital and operating cost estimates will be produced at 25% accuracy and a financial analysis will be prepared. SNC-Lavalin will also investigate the open pit potential of certain of the resources in the Jacobina area, particularly in light of the recently announced drill results in and around the Serra do Corrego area.

The project will be headed by Mr. Tim Mann, of SNC-Lavalin. Mr. Mann has over 25 years of experience in mining and prior to joining SNC-Lavalin was Vice President of Operations for Goldcorp Inc., and General Manager for the Campbell Mine for Placer Dome in Red Lake, Ontario. He was also involved with the exploration and feasibility study work for Placer Dome's Musselwhite Mine, and feasibility study work and operation of their Detour Lake Mine.

Under the overall coordination of SNC-Lavalin, the mining study will be carried out by Dynatec Corporation. Dynatec is a leading international provider of mining services, drilling services and metallurgical technology to the mining industry. Dynatec have extensive experience in mine access design, pre-production development and contract mining. Dynatec is listed on the Toronto Stock Exchange (DY:TSX). The Dynatec work will be completed by its Mining Division which is headed by Mr. W.M. Shaver, Vice President.

The previously completed review of mineral resources by Micon International Limited will be updated by Micon as part of the pre-feasibility. Micon provides consulting services to the international mining industry, specializing in the areas of financial analysis, technical analysis, production feasibility studies, project monitoring, litigation support and environmental management. The Project Manager for Micon International is Mr. Terry Hennessey.

Mr. Hennessey is a senior geologist with over 22 years of experience in mining with over 10 of those years in mineral resource estimation, ore reserve reporting and grade control at several open pit and underground mines in Canada.

"This is a major milestone for our Jacobina Mine in Brazil," said Stan Bharti, President, Desert Sun Mining. "The appointment of SNC-Lavalin and Dynatec is especially important because both of these companies have the capability not only to complete the pre-feasibility study but also to construct the mine and eventually put it into production and operate it on an ongoing basis. SNC-Lavalin has completed Engineering, Procurement. and Construction Management (EPCM) for numerous major projects around the world and will bring their specialized processes and overall mining construction expertise to bear on Jacobina. Dynatec, in addition to contracting, operates underground mines for its clients."

Desert Sun recently released results from exploration drilling on three target areas located 2 to 8km from the existing plant that tested the same stratigraphy as the Joao Belo and Itapicuru Mines. The drill results, combined with the previous data and drilling at the mines, indicate 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.

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

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

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