Elgin Resources Inc.: Private Placement Funds Released from Escrow.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--May 12, 2004

Further to its news release of April 30, 2004, Elgin Resources Inc. (TSX VENTURE:ELR) (the "Company") is pleased to announce that all of the conditions to the release of the net proceeds from the Company's private placement (the "Private Placement") of subscription receipts have been satisfied, including receipt of Exchange acceptance to the Company's previously announced acquisitions (the "Acquisitions") respecting the Mareesburg platinum project (the "Mareesburg Project"). As a result a total of $36,219,456, together with accrued interest, has been released to the Company, being the funds held in escrow less $1,320,194 representing the balance of the Agents' commission payable in respect of the Private Placement.

Concurrent with the release of funds a total of 22,747,000 common shares and 11,373,500 share purchase warrants (the "Warrants") of the Company, each such Warrant entitling the holder to acquire a further common share in the Company at $2.40 per share for a term expiring May 11, 2007, have been issued to the investors in the Private Placement. The Company has also issued 1,364,820 Agents' warrants, each such warrant entitling the holder to acquire a common share of the Company at $1.80 for a term expiring May 11, 2007. These securities are restricted from transfer until August 30, 2004.

In connection with the completion of the Acquisitions the Company will also be issuing a further 2,650,000 common shares as consideration for all of the shares of Royal Anthem Investments Pty (Ltd.), a company the sole asset of which is 51% of the shares of Lion's Head Platinum (Pty) Ltd., the Company's 50/50 joint venture partner in the Mareesburg Project. The shares are issuable to Boulder Investments Ltd., as to 1,786,654 shares, and Red Sea International Ltd., as to 863,346 shares, and will be restricted from transfer for a period expiring September 12, 2004.

As detailed in the April 30, 2004 news release, the net proceeds of the Private Placement will be used to pay 101,000,000 Rand (approximately CAD$21,000,000) to exercise the option to acquire the mineral rights which are the subject of the Mareesburg Project and to fund costs of approximately CAD$7,000,000 to further define the measured and indicated resources at the Mareesburg Project and to advance the project to bankable feasibility. The balance of the proceeds will be applied to the costs of the Private Placement, working capital and for general corporate purposes.

Elgin is well financed and building a substantial portfolio of Platinum Group Metals ("PGM") mining and exploration projects in South Africa in various development stages. Mareesburg is an advanced PGM project which could be placed into production quickly and at a relatively low cost. Rooikraal is a very prospective PGM project situated adjacent to Southern Era's Millenium project and Cluff Mining's Blue Ridge Project. A number of other PGM projects and properties in South Africa are currently being evaluated by the Company for further acquisition.

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