Franconia Minerals Corporation: Mahoney Property Update.

SPOKANE, Wash. -- FRANCONIA MINERALS CORPORATION (TSX VENTURE:FRA)(OFEX:FRA) ("Franconia") is pleased to announce that it has signed a Property Acquisition Agreement (the "Acquisition Agreement") with Teck Cominco American Incorporated ("Teck Cominco") regarding Franconia's Mahoney property ("Mahoney") in Luna County, New Mexico.

In 2000, Franconia acquired Mahoney from third parties following the review of data provided by Teck Cominco under the terms of an Exploration and Option Agreement ("E&O Agreement") with Teck Cominco. Under the terms of the E & O Agreement, if Franconia secured interests in properties based on the data provided by Teck Cominco, the parties would negotiate the terms regarding the exploration of those properties. The Acquisition Agreement calls for Franconia to spend US$2,000,000 over four years on exploration on Maloney, including an expenditure of US$500,000 in the first year.

Upon Franconia completing its full expenditure obligations on the property, Teck Cominco will have a one-time option to earn a 75% interest in Mahoney by spending an additional US$5,000,000 on the property within four years. If Teck Cominco does not exercise this earn-in right, it will have no further rights to the property except for a 2% net smelter royalty. Franconia will also have the right to reduce the royalty to 1% by paying Teck Cominco US$1,500,000.

In accordance with the Acquisition Agreement and subject to TSX-V approval, Franconia will issue to Teck Cominco 250,000 units of Franconia. Each unit will consist of one common share of Franconia and one-half of one common share purchase warrant. Each whole Warrant will entitle Teck Cominco to purchase one common share of Franconia at an exercise price of Cdn$0.60 on the earlier of: a) 15 trading days after receiving notice from Franconia that the weighted average price of the common shares of Franconia has been equal to or greater than $0.70 for a period of 15 consecutive trading days and b) the second anniversary of the date of issuance.

In July 2005 Franconia completed 4,000 feet of reverse circulation drilling in seven vertical drill holes focused on the patented claims (134 acres) on Mahoney. Only minor amounts of zinc were encountered and Franconia recently terminated its lease on the Mahoney patented claims but continues to hold 54 unpatented mining claims covering 1,080 acres.

Franconia Minerals Corporation trades on both the TSX-V in Canada and OFEX in the UK under the symbol FRA. (For additional information see www.franconiaminerals.com.) The directors of Franconia Minerals Corporation accept responsibility for this announcement. Franconia currently has 28,298,385 shares issued and outstanding.

This document, which has been issued by Franconia Minerals Corporation (Franconia), has been approved solely for the purposes of Section 21 of the Financial Services and Markets Act 2000, by Lion Capital Corporation Limited (Lion), 4th Floor, 2 Cromwell Place, London SW7 2JE, who is authorised to carry on Investment Business by the Financial Services Authority. Lion is acting as advisers to Franconia and to no-one else and will not be responsible to anyone other than Franconia for providing protections afforded to customers of Lion for providing advice in relation to any investment made pursuant to this announcement and makes no recommendation for the suitability of any investment, which is the subject of this announcement.

FORWARD-LOOKING STATEMENT: Although Franconia Minerals Corporation believes many of its properties have promising potential, its properties are in the early stages of exploration. None have yet been shown to contain proven or probable mineral reserves. There can be no assurance that such reserves will be identified on any property, or that, if identified, any mineralization may be economically extracted. Incorporated in Alberta Canada No. 207953670.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESP ONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Franconia Minerals Corporation (TSX VENTURE:FRA) (OFEX:FRA)