Magnum Discovers up to 1.7% Copper and .729 g/t of Gold in Rock Chip Samples on Khul Morit.

TORONTO -- Magnum Exploration Update August 23, 2004

MR. RENO J. CALABRIGO, President and CEO of Magnum (OTCBB:MAGR) is pleased to announce an additional update for the rock chip samples and soil geochemistry on the Khul Morit license. It was discovered that many of the trace elements normally associated with porphyry copper deposits such as copper-arsenic-gold were present in above average quantity from 85 rock chip samples taken from the Khul Morit. The samples which returned significant base (copper) up to 0 1.77 %, precious (gold) up to .729 g/t, and indicator elements (arsenic) metal content are listed as can be seen on the Company's website.

SOIL GEOCHEMISTRY

Soil sampling was carried out on north-south trending grid lines spaced at 100-meter intervals with 50-meter stations. Samples were taken from hand-dug pits with a depth of 30-50cm. Approximately 700 grams of soil was scooped out with a hand trowel and placed in marked Kraft envelopes. Soil samples were sent to SGS Labs in Ulaanbaatar, Mongolia for Au geochemical analysis and pulps were shipped to SGS Labs, Toronto for 30 element ICP geochemical analysis. The soil profile on the Khul Morit property is typical of a sierozem soil (also referred to as aridisol and/or xerosol soil types). These soil types are common in desert and semi-desert conditions of middle latitudes and occur in areas where there is greater than 250mm annual rainfall. These soils feature a limited amount of organic material and contain free calcium carbonate and/or gypsum at or just below the surface. A compilation of significant base, precious and indicator metals from geochemical analysis of soils are summarized as can be seen on the Company's website.

The initial soil survey outlined moderate-strong gold with low arsenic and copper in the south part of the grid, which is underlain by fractured, limonitic rhyolite tuff. The north portion of the grid contains higher copper and arsenic anomalies with lesser gold anomalies.

Soil geochemistry identified several areas of gold enrichment. There is a widespread gold in soil anomaly on the south part of Line 5000E and Line 5100E (between stations 4350N to 4800 N). This location is the southwest portion of the 2004 grid area. Another interesting area of gold in soil is located on Line 5400E between station 5150N and 5300N. This area also contains extensive copper mineralization (trench T-9) and is located adjacent to Line 5400E at station 5300N.

Due to the coincident gold in soil (as well as high arsenic) and high copper values in rock chips, this area of L 5400E (station 5150N to 5300N) is a high priority follow-up target for exploration and development work. Another area of anomalous gold geochemistry is the southeast portion of the grid (Line 5500E to 5700E, stations 4400N to 4700N). This area is underlain by limonitic and fractured rhyolite, and although the anomaly is weak in strength, gold geochemistry exhibits a grouping of elevated values.

Due to the presence of anomalous gold geochemistry in soils and limited rock chip samples, detailed mapping/trenching and IP/magnetometer geophysics on the south and west portion of the property is recommended. For example, rock sample 184024 which returned 729 ppb Au, is hosted in silicified, limonitic, and fractured rhyolite tuff/flow sampled from a 15 X 20 meter area, and is located in the west portion of the Khul Morit mineral license. The areas to the west, as well as the south portion of the 2004 grid area are underlain by clay altered rhyolite tuff/flow.

These results further demonstrate the significant potential to host an economic deposit of copper and/or gold. Management is very pleased with the results and the fact that significant potential that has been identified in the Khul Morit property.

A number of statements contained in this press release are forward-looking statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve a number of risks and uncertainties including but not limited to: competitive market conditions, successful integration of acquisitions, and the ability to secure additional sources of financing. The actual results that Magnum may achieve could differ materially from any forward-looking statements due to such risks and uncertainties.