Metallurgy Results Support In-Situ Recovery At Gunnison Project 

VANCOUVER, BC - Excelsior Mining Corp. reported results from the initial metallurgical tests on the 100% owned North Star Deposit of the Gunnison Copper Project, located in southern Arizona. Initialcolumn leach tests indicated that acid consumption and copper recovery at North Star will support in-situ recovery ("ISR") mining.

"We are very pleased that the results from the recent test work confirm our view that the recovery rate and acid consumptions are favorable for ISR mining of the North Star deposit," says Stephen Twyerould."These results, as well as the encouraging hydrological testing completed last month, will be used to complete our Preliminary Economic Assessment expected later this year."

The North Star Deposit currently contains an indicated oxide copper resource of 3.21 billion pounds (511 million tons at 0.31% copper) and an additional inferred oxide copper resource of 0.88 billion pounds (159 million tons at 0.28% copper).

The metallurgical tests involved loading 6-inch diameter clear PVC pipe with three representative samples from the North Star deposit and leaching them with a dilute sulfuric acid solution for 164 days. The three samples were from the Martin formation (Met 1: high acid consumer), Upper Abrigo (Met 2: moderate acid consumer) and Lower Abrigo (Met 3: low acid consumer). The Martin formation sample is representative of the higher acid consuming rocks that make up approximately 50% of the mineralization; whereas, the Abrigo samples are representative of the lower acid consuming rocks (making up the remaining 50% of the mineralization). Given that the copper mineralization is essentially all chrysocolla and other silicates occurring on natural fracture planes and surfaces, the core fragments of the higher acid consuming rocks were epoxy-coated to seal off any unnatural surfaces and fractures created by drilling and core handling.

The results indicate that within the fractured oxide copper zone, approximately 65% to 80% of the copper will dissolve if contacted by dilute sulfuric acid solutions at a pH of approximately 1.5. These results are consistent with typical metallurgical recoveries of copper oxide deposits in the southwestern USA and northern Mexico. These results represent metallurgical recovery and not overall copper recovery, which is expected to be in the range of 40% to 50%, as is typical of ISR-based mining operations.

Estimates for acid consumption in terms of pounds of acid consumed per pound of copper recovered (lb/lb) were also completed for the recent test work. The results for each sample are as follows; Met 1, 8.9 lb/lb; Met 2, 5.0 lb/lb; and Met 3, 3.9 lb/lb. These results were very encouraging and generally superior to historical results, further demonstrating the potential for the Gunnison Project to become a low-cost copper producer.

The results of the recent metallurgical test work will be combined with historical test work and other important data to complete a Preliminary Economic Assessment on the North Star deposit scheduled to be completed later this year.

The company's address is 1240, 1140 West Pender Street, Vancouver, BC

V6E 4G1, 604-681-8030, fax: 604-681-8039.