Initial Kola results

Eurasia Mining PLC 02 August 2004 Initial exploration results underline promise of Russia's Kola Peninsula Eurasia Mining plc is pleased to announce encouraging initial exploration results from two licences on the Kola Peninsula in north-west Russia. The results come from the Volchetundra and West Imandra licence areas, where Eurasia will hold initial interests of 81% for five-year periods dating from mid-2003 and the spring of 2004, respectively. Eurasia Managing Director Christian Schaffalitzky said: 'We are extremely encouraged by these early successes, which provide a sound basis for the further early exploration work now continuing. We believe the Kola region holds highly promising potential for Eurasia.' Eurasia announced last year it was planning a major platinum group metals (PGMs) exploration program on three areas on the Kola Peninsula, under an exclusive agreement with local companies and in collaboration with the Central Kola Expedition (CKE). At Volchetundra, new trenching work has now identified ore grades of 0.7 grams per tonne (g/t) of PGMs over a thickness of 10 metres, and 4.7g/t of platinum, 4.6g/t of palladium and 2g/t of gold over a thickness of 2.6 metres. The area covers a major intrusion with a strike length of 40 kilometres. The 229 square-km West Imandra licence covers a large intrusion hosting important layered units of chromitite towards the base and magnetite with anorthosite towards the top, often associated with PGM mineralization. A drill hole on a chromitite unit has assayed platinum at 1g/t. A recent trench on anorthosite below the magnetite layers gave 2.94g/t of PGMs over a 1 metre-thick zone. The Kola region has a long history of mining and metal refining, principally of nickel and copper with PGM as by-product, but PGM exploration has only been carried out in recent years. The target for this activity is a major group of ultramafic and mafic rock intrusions of the kind that are the main geological host for PGM mineralisation worldwide, including the commercially-productive Bushveld Complex of South Africa. Administrative changes and a large backlog in the licensing procedures have delayed completion of the final agreement, which will include a third licence area, and which Eurasia wishes to put in place before commencing full-scale exploration For further information contact: Christian Schaffalitzky, Eurasia Mining PLC: +44 (0) 20 7976 1222 Allan Piper, First City Financial Public Relations: +44 (0) 20 7436 7486 +44 (0) 7736 064 982 This information is provided by RNS The company news service from the London Stock Exchange