In July 2004, Magnus established a joint venture to explore the 83.29 square kilometer Huidong gold/copper property, which lies immediately north and northwest of Southwestern Resources' most significant gold discoveries, collectively known as the Boka Gold Project.

The Huidong Property is on trend, or in alignment with Southwestern's extensive, richly mineralized Boka structure, which is hosted by a structural and stratigraphic geological setting very similar to that of the Huidong Property. Various fault zones on Magnus' joint venture property bear a strong resemblance to faults that host Boka's multiple discovery zones. Faults are structural weaknesses in the earth's crust that often allow gold and other metals to migrate towards the surface from much greater depths. The fact that fault zones at Huidong have also yielded encouraging gold and copper values strengthens the comparison

Highlights:

*Located in under-explored, yet geologically fertile region of Sichuan Province, China
*83.29 square kilometer Huidong property situated adjacent to world-class gold discoveries of Southwestern Resources' Boka Gold Project
*To date, the Boka Trend has yielded twelve known significant gold mineralization zones over a 25 kilometer plus corridor, and Southwestern Resources recently reported a current combined indicated and inferred resource at the Boka project of over 5 million ounces of gold, which is expected to grow as drilling continues
*Huidong's gold-in-soil anomalies and similar shear zones suggest that the Boka Trend continues onto the Huidong property. Southwestern has confirmed the "positive association between mineralization at the Boka Gold Project and gold-in-soil anomalies."
*Long Teng Mining Co., a Chinese corporation, is the Sino-Foreign joint venture company between Magnus and China Yunnan Province Nuclear Industry Brigade 209, known as Team 209
*Team 209 exploration group played a key role in Boka Project gold discoveries
*Project operator Magnus can earn up to a 90% interest in Huidong by spending US $5 million on exploration and development over 48 months. Team 209 receives a 10% non-dilutable interest.
*To date, joint venture exploration program has included comprehensive geochemical soil sampling, structural and stratigraphic mapping, and surveying to define targets for follow-up trenching and tunneling.
*Results of our geochemical survey identified three targets showing evidence of large zones of high-gold mineralization.
*Exploration program is well underway, and drilling is expected to commence in 2006