Desert Sun Reports Further Increase in Total Measured and Indicated Resources at Jacobina to 2 Million Ounces of Gold.

TORONTO -- DESERT SUN MINING CORP. (TSX:DSM)(AMEX:DEZ) has completed an updated mineral resource estimate incorporating new drilling results for all zones at the Jacobina Mine on the Bahia Gold Belt in northeastern Brazil. This provides a final statement of updated mineral resources as at December 14, 2004 as shown in Table 1 below. Figure 1 shows the location of the major zones.

Measured and indicated mineral resources for all zones at Jacobina now total 24,800,000 tonnes grading 2.53 g Au/t containing 2,050,000 ounces of gold. This is a significant increase of 690,000 ounces of gold compared to the August 2003 measured and indicated resource of 14,800,000 tonnes at 2.86 g Au/t containing 1,360,000 ounces of gold. Most of this increase has been at the Joao Belo Zone where an additional 3,500,000 tonnes grading 2.48 g Au/t containing 280,000 ounces of gold was added to indicated resources (see press release November 17, 2004) and in the Morro do Vento area where 5,000,000 tonnes grading 2.07 g Au/t containing 350,000 ounces of gold above the 800 level were added to the indicated category.

Inferred mineral resources in all zones now total 22,200,000 tonnes grading 2.61 g Au/t containing 1,900,000 ounces of gold. This is a reduction of 600,000 ounces compared to the August 2003 inferred resource of 29,500,000 tonnes grading 2.62 g Au/t containing 2,500,000 ounces of gold. This reduction reflects the successful achievement of the drilling program's objectives to upgrade inferred resource blocks to the indicated category.

Desert Sun owns 100% of the Jacobina Mine and the 155 km long Bahia Gold Belt in the state of Bahia, in northeastern Brazil. The mine will re-start operations in the first quarter of 2005. The SNC  Lavalin Feasibility Study, completed in September 2003, indicates that the mine can produce at a rate of 102,000 ounces of gold per year at an average cash cost of US $189 per ounce.

DSM previously released (see press release of February 12, 2004 and report filed on SEDAR) the results of a scoping study by SRK Consulting that extended the SNC Lavalin Feasibility Study mine plan an additional 11 years by scheduling the potentially "mineable tonnes" resulting from the conversion of inferred resources based on historical data. SRK Consulting considered that Jacobina has the potential to deliver "economically mineable tonnes" containing 2 million recoverable ounces of gold and that the optimum production rate at Jacobina was likely 5,200 tonnes per day or 154,000 ounces of gold per year. While, it must be cautioned that the SRK study is not adequate to definitely confirm the economics of the inferred mineral resources, the 2004 drilling program has successfully upgraded a substantial amount of the existing inferred resource to the indicated category which can now form the basis for an expanded feasibility study.

Mr. Bruce Humphrey, P.Eng., President said: "The Desert Sun mine staff is currently completing a mine plan and mineral reserve estimate for the new indicated mineral resource at the Jacobina Mine (Joao Belo Zone). In early 2005, we will be initiating an evaluation of all of the indicated resources to assess their economic potential following the guidelines of the SRK Consulting study. It is our expectation that reserves will increase significantly and that a future expansion of the production rate could be possible. "

Dr. Bill Pearson, P.Geo., Vice President, Exploration commented: "The 2004 drilling program was very successful in upgrading inferred mineral resources to the indicated category. The conversion rate was very high reflecting our success in not only confirming the original inferred blocks but also extending the mineralized zones along strike and downdip. Drilling will re-start in early 2005 to further expand mineral resources. We feel strongly that we are just beginning to evaluate the full geological potential of this major mineralized belt."

The updated resource estimate has been reviewed and confirmed by Terry Hennessey, P.Geo. of Micon International. Mr. Hennessey, who is an independent qualified person as defined under National Instrument 43-101, visited the site from November 30 to December 2, 2004. The resource estimation methodology and classification used is the same as outlined in the August 2003 report by Mr. Hennessey filed on SEDAR.

Assaying for the 2004 drilling program was carried out by Lakefield Geosol, an ISO 9001, 2000 laboratory based in Brazil, using fire assay on 50 gram pulps. Check assaying was routinely carried out, by ALS Chemex in Vancouver, on 10% of sample pulps and 5% of sample rejects. Independent standard reference samples are also inserted at regular intervals into each batch of analyses. 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.

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 and the American Stock Exchange. (www.desertsunmining.com).

Table 1
                        Summary of Mineral Resources
               Updated by DSM and reviewed and confirmed by Micon
                      as at December 12, 2004(A)

---------------------------------------------------------------------
Category              Area       Tonnes      Grade          Contained
                                                                 Gold
                                          ---------------------------
                                          (g/t Au)           (ounces)
---------------------------------------------------------------------
Measured          Joao Belo   2,300,000       2.41            180,000
               Itapicuru(B)     250,000       5.70             45,000
           Serra do Corrego      10,000       7.50              3,000
                Canavieiras      56,000       6.73             12,000
           ----------------------------------------------------------
                   Subtotal   2,620,000       2.83            240,000
           ----------------------------------------------------------
Indicated         Joao Belo  10,300,000       2.37            790,000
               Itapicuru(B)   9,390,000       2.63            790,000
          Serra do Corrego      910,000       2.39             70,000
               Canavieiras      850,000       3.61            100,000
             Joao Belo Sul      770,000       2.55             60,000
           ----------------------------------------------------------
                  Subtotal   22,200,000       2.49          1,810,000
           ----------------------------------------------------------
Total            Joao Belo   12,600,000       2.38            970,000
Measured      Itapicuru(B)    9,630,000       2.71            840,000
and       Serra do Corrego      920,000       2.44             72,000
Indicated      Canavieiras      900,000       3.80            110,000
             Joao Belo Sul      770,000       2.55             60,000
           ----------------------------------------------------------
                     Total   24,800,000       2.53          2,050,000
           ----------------------------------------------------------
Inferred         Joao Belo
     Joao Belo-other reefs    1,000,000       3.88            120,000
              Itapicuru(B)    3,800,000       3.17            390,000
          Serra do Corrego    1,800,000       2.95            170,000
               Canavieiras    3,700,000       2.41            290,000
          Joao Belo Sul(C)    3,900,000       1.67            210,000
               Other Areas    2,700,000       3.23            280,000
           ----------------------------------------------------------
                     Total   22,200,000       2.61          1,900,000
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(A)Totals have been rounded
(B)Itapicuru includes Morro do Vento, Morro do Vento Extension and
   Basal/Main Reef
(C)Previously included in Other Areas

A Geological Plan Map of Jacobina Mine Area showing locations of Major Areas with Mineral Resources is available at: http://www2.ccnmatthews.com/database/fax/2000/dsmap.pdf

Desert Sun Mining Corp. (TSX:DSM) (AMEX:DEZ)