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Minco Silver Announces a 31% Increase in the Indicated Resource on Its Fuwan Silver Project

Updated: 2008-05-13 10:40

Minco Silver Corporation (the "Company" or "Minco Silver") (Toronto:MSV.TO - News) is pleased to report the results of an updated resource estimate for the Fuwan Silver Project located in Guangdong Province, China. Recent drilling has been successful in expanding the overall resource through step out drilling and upgrading a significant amount of the Inferred resources to Indicated through closely spaced step out drilling on the outer boundaries of the mineralized zones and with very limited amounts of in-fill drilling. The Indicated resource increases from 11.9 million tonnes containing 71.6 million ounces of silver to 16.0 million tonnes containing 93.5 million ounces of silver, or a 31% increase. The Fuwan deposit remains open along strike to the southwest and down dip to the southeast.

The purpose of this resource estimate was to:

- Expand the Indicated resources for inclusion in the ongoing Feasibility Study.

- Expand the overall Fuwan deposit resource base.

- Estimate silver resources that reflect Minco Silver's current exploration permit holdings.

- Estimate silver resources on Minco Silver's 51% interest in the adjoining Changkeng licence area.

The resource estimate is based on assay results from a total of 422 holes and includes gold (Au), lead (Pb), and zinc (Zn) credits and is reported as an Indicated resource of 15,975,000 tonnes at 182 g/t Ag, 0.20 g/t Au, 0.20% Pb, and 0.57% Zn and an Inferred resource of 11,290,000 tonnes at 174 g/t Ag, 0.26 g/t Au, 0.27% Pb, and 0.73% Zn. Details of the resources residing on the Changkeng and Fuwan properties are shown in Table 1.


Table 1. Resource Estimate(1) @ 40 g/t Ag Cut-Off Grade.

Resource Area &        Tonnes      Ag          Ag      Au     Pb      Zn
 Classification                  (g/t)        (oz)   (g/t)    (%)     (%)
Fuwan Permits
 Indicated         13,948,000     188   84,268,000   0.17   0.20    0.56
Changkeng Permit
 Indicated(ii)      2,027,000     142    9,235,000   0.40   0.20    0.61
Total Indicated    15,975,000     182   93,503,000   0.20   0.20    0.57

Fuwan Permits
 Inferred          10,241,000     171   56,147,000   0.26   0.26    0.72
Changkeng Permit
 Inferred (iii)     1,049,000     212    7,136,000   0.29   0.37    0.86
Total Inferred(2)  11,290,000     174   63,283,000   0.26   0.27    0.73

(ii) The Indicated resources reported on the Changkeng permit represent 51%
of the actual Indicated resources reflecting Minco Silver's proportional
ownership. Total Changkeng Indicated silver resources are 4,054,000 tonnes
and 18,470,000 ounces of silver.

(iii) The Inferred resources reported on the Changkeng permit represent 51%
of the actual Inferred resources reflecting Minco Silver's proportional
ownership. Total Changkeng Inferred silver resources are 2,098,000 tonnes
and 14,272,000 ounces of silver.

(1) Mineral resources which are not mineral reserves do not have
    demonstrated economic viability. The estimate of mineral resources may
    be materially affected by environmental, permitting, legal, title,
    taxation, sociopolitical, marketing, or other relevant issues.

(2) The quantity and grade of reported Inferred resources in this
    estimation are conceptual in nature and there has been insufficient
    exploration to define these inferred resources as an Indicated or
    Measured mineral resource and it is uncertain if further exploration
    will result in upgrading them to an Indicated or Measured mineral
    resource category.

The mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council December 11, 2005. The resource was defined using April 2008 24-month trailing average metal prices of US$13.69/oz Ag, US$710/oz Au, US$1.01 per pound (/lb) Pb, and US$1.48/lb Zn. Operating costs of $12.00/tonne for mining, $11.50/tonne for processing/tailings management, and $5.50/tonne for G&A for a total of $29.00/tonne and a process recovery of 97% for Ag, along with Au, Pb & Zn credits of approximately $10.00/tonne were utilized to derive a cut-off grade of 40 g/t Ag.

Dr. Ken Cai, Chairman and CEO commented: "We are very pleased with the 31% increase in the Indicated resources and this will significantly increase the proposed mine life. The Company continues to expand the overall resources with the deposit which remains open along strike and down dip. We are also excited to begin to explore other top showings along the Fuwan Silver Belt."

The resource update was prepared by Qualified Persons, Eugene Puritch, P.Eng., Antoine Yassa, P.Geo. and Tracy Armstrong, P.Geo. of P & E Mining Consultants Inc. of Brampton, Ontario. The authors of the current resource estimate reviewed original assay certificates from core samples and check samples and collected their own site visit verification samples. It is the authors' opinion that the data have been adequately verified for the purposes of an NI 43-101 resource estimate and all historic and current data were found to be accurate, with an acceptable level of precision.

Mr. Dwayne Melrose, P. Geo, Vice President Exploration for Minco Silver, has reviewed this news release and is the Qualified Person responsible for verification and quality assurance of the Company's exploration data and analytical results.


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