Desert Sun Orders Mobile Equipment and Concludes a Supplier Credit Agreement with Atlas Copco.

TORONTO -- DESERT SUN MINING CORP. (TSX:DSM) is pleased to confirm that it has finalized an order for mobile equipment in the amount of US$3.8 million (ex works) from Atlas Copco. Atlas Copco has agreed to provide financing for this equipment over a period of 24-months, with the first payment for each piece of equipment due nine months after its shipment. The equipment financing effectively defers an up-front cash requirement of approximately US$3 million until the point where the company has reached a steady state of production. Delivery of the units will take place starting September 2004, with the final loader being delivered in January 2005.

Desert Sun is initially purchasing three ST 1520 Loaders, two RB 282 Rocket Boomers and two M6C ITH Simbas. Atlas Copco will establish a Parts Warehouse at Jacobina and has entered into a Full Service Agreement with the Company. To ensure that Desert Sun meets its production timetable, Atlas Copco has agreed to provide appropriate bridge units. Two loaders and two electric hydraulic jumbos will be delivered to Jacobina in July and August 2004. These units will later be available as backup units in support of Atlas Copco's guarantees, and thereafter can be released or retained on a rental basis at the option of Desert Sun.

In conjunction with an extensive exploration program, the refurbishment of the 4200 tpd mill at Jacobina is well underway, the underground workings have been de-watered and production is expected to commence in the first quarter of 2005. The mine plan contemplates average annual production of approximately 75,000 ounces of gold in 2005 and 108,000 ounces of gold per year from 2006 to 2011, at a cash cost of approximately US$190 per ounce.

About Atlas Copco

The Atlas Copco Group manufactures products on 51 production sites in 17 countries on five continents. Atlas Copco companies develop and manufacture electric and pneumatic tools, compressed air equipment, construction and mining equipment, assembly systems, and offer related service and equipment rental. The products are sold and rented under different brands through a worldwide sales and service network reaching 150 countries, half of which are served by wholly or partly owned sales companies. Head office is in Stockholm, Sweden.

Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements."

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