Statement re Medoro Resources Ltd. - Q2 results

Medoro Resources Announces 2006 Second Quarter Results

    TORONTO, Aug. 29 /CNW/ - Medoro Resources Ltd. (TSX-V:MRS, AIM: MRL)
announced today results for the quarter ended June 30, 2006.
    For the quarter ended June 30, 2006, Medoro reported a loss of $703,000
or $0.02 per share as compared to a loss of $423,000 or $0.00 per share in the
second quarter of last year. The current loss largely reflects corporate costs
of $908,000, partially offset by net interest and other income of $205,000.
For the six months ended June 30, 2006 the company reported a loss of $844,000
or $0.00 per share as compared to a loss of $935,000 or $0.01 per share for
the same period last year. At June 30, 2006 the company had cash and
short-term investments of $15.8 million and no debt. Complete financial
statements are available on the Company's website or on SEDAR at
www.sedar.com.
    As previously announced, Medoro completed the acquisition of the Lo
Increible 4A and 4B properties in Venezuela on July 10, 2006. Upon closing of
the acquisition, the company also completed a private placement with Gold
Fields Ltd. of 2.15 million units, for additional proceeds of $3 million,
bringing their ownership in the company to 9.9%. Each unit consisted of a
share and one-half of a warrant, with each whole warrant being exercisable for
two years at a price of $2.80. On August 11, 2006, Medoro announced that it
had completed the sale of its remaining assets in Sardegna, resulting in
additional proceeds to the company of approximately $3 million.
    At the Lo Increible property, the company has started a 10,000-metre
drilling campaign designed to provide the basis for reclassifying the existing
historical resources and 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.

    Medoro Resources is a gold exploration and development company focused on
acquiring properties of merit for potential joint ventures with senior
producers. Further information is available on our website at
www.medororesources.com.

    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE

   

For further information: Robert Doyle, Executive Vice President, (416)
603-4653, rdoyle(at)medororesources.com
(MRL.)