Marlowe Regulatory News (MRL)

31 May 2007 07:00

Medoro Resources Announces 2007 First Quarter Results

TORONTO, May 30 /CNW/ - Medoro Resources Ltd. announced today results for the quarter ended March 31, 2007.

Medoro reported a net loss of $1.0 million or $0.02 per share as compared to a loss of $0.1 million or $nil per share in the previous year. The 2007 loss in the quarter largely reflects general and administrative costs of $1.0 million to support the increased exploration activities compared to the previous year. At March 31, 2007 the company had cash and short-term investments of $10.7 million and no debt.

The Company has commenced a 10,000 metre diamond drilling program at the La Cruz, La Sofia and El Tapon prospects to provide the basis for reclassifying the existing historical resources and to identify additional reserves and resources. The first phase of drilling will be in-fill drilling at the La Cruz, La Sofia and El Tapon prospects on 12.5 and 25-metre spacing with the objective of upgrading the existing 390,000 ounces of indicated resources and 505,000 ounces of inferred resources respectively. Included in this phase will be a number of deep holes to test the down-dip potential of the mineralization at the three prospects. Initial diamond drilling results confirmed the historical data in La Cruz where two sub-parallel shear-hosted mineralized bodies have been better defined. Mineralization remains open to the north-east and an upper zone has been intercepted to the south-west at La Sofia. Highlights of this program include hole No.L106-014 which encountered 48.6 metres grading 2.5 grams per tonne (g/t) and L106-023 which intercepted 8.5 metres with a gold grade of 7.1 g/t.

As previously announced, the company entered into an option agreement to acquire rights to nine gold exploration and exploitation areas totaling more than 1,200 square kilometers in two major Birrimian greenstone belts in Mali. Eight of the properties are located in the Bougouni Region, Southern Mali, where producing Morila (Randgold Resources-Anglo Gold Ashanti) and Syama (Resolute Resources) gold mines are located.

Medoro Resources is a gold exploration and development company focused on acquiring properties of merit for potential joint ventures with senior producers. The company holds a 100% interest in the Lo Increible 4A and 4B concessions in Venezuela. Additional information on Medoro Resources can be found by visiting the company's website at www.medororesources.com.

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For further information: Nelson Lee, Chief Financial Officer, (416) 603-4653, nlee(at)medororesources.com (MRL)