Elgin Increases Interest to 75% in 1.9 Million Ounce Mareesburg Platinum Project, South Africa.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--Feb. 26, 2004

Mr. Ian Rozier, President of Elgin Resources Inc. ("Elgin") (TSX VENTURE:ELR), is pleased to report that Elgin has entered into two agreements whereby it can increase its interest in the joint venture with Lion's Head Platinum (Pty) Ltd ("LHP") to purchase the mineral rights at Mareesburg from Samancor Limited. On February 12, 2004 Elgin reported that it had acquired the rights to a 50% interest in the 1.9 million ounce Mareesburg Platinum Project ("Mareesburg"). The two new agreements enable Elgin to purchase a 51% interest in Lion's Head Platinum (Pty), Elgin's joint venture partner which holds a 50% interest in the project, thus increasing Elgin's interest in Mareesburg to 75.5%.

The consideration paid to acquire the 51% interest in Lion's Head will be by way of the issuance of 2,650,000 common shares of Elgin to acquire 100% of the shares of Royal Anthem Investments Pty (Ltd) ("RA"). RA is owned 62.5% by Boulder Investments Ltd ("Boulder") and 37.5% by Red Sea International Ltd ("Red Sea"). The consideration to be paid by Elgin for these interests are 1,786,654 and 863,346 new common shares respectively to the shareholders of Boulder and Red Sea.

LHP is a private South African black empowerment company that is fully compliant with the South African Mining Charter, and these transactions further strengthen a mutually beneficial empowerment model created between a major South African mining company and Historically Disadvantaged South African entrepreneurs and mining professionals backed by international capital.

"We believe Mareesburg has the potential to become a stand-alone PGM mine. PGE grades are comparable to that of other major platinum mine developments in the area and the UG2 reef outcrops on the property so will be amenable in part to open-pit mining methods. We are extremely pleased to have increased our interest and we now have a significant control position at Mareesburg," commented Mr. Rozier.

The acquisition of the Mareesburg property interests are subject to closing conditions normally associated with transactions of this nature. The acquisitions are expected to close by March 30, 2004.

Elgin is committed to building a substantial portfolio of PGM exploration and mining projects in South Africa in various development stages. A number of other Platinum Group Metals projects and properties in South Africa are currently under evaluation and further acquisitions are anticipated in the near future.

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