FOCUS MINERALS LTD — M&A Activity 2005

AUSTMINEX, MATADOR COMMENCE HISTORIC COOLGARDIE GOLD PUSH AFTER COMPLETING ACQUISITION OF COOLGARDIE GOLD PROJECT FINAL A\$3.6M SETTLEMENT PAYMENT CLEARS THE WAY FOR INTENSIVE EXPLORATION PROGRAM

WA-based gold group Austminex Limited (ASX: ATX) (soon to be renamed Focus Minerals Limited) and its Canadian-based partner Matador Mining Pty Ltd (TSX-V: MXN) will shortly commence the most intensive and comprehensive exploration $\&$ development program ever seen in the history of the Coolgardie region after today completing the acquisition of the Coolgardie Gold Project (CGP) from Leviathan Resources Limited and Herald Resources Limited.

Austminex and Matador said today (Monday) that drilling was scheduled to commence later this month at key targets within the newly acquired CGP after the newly established Joint Venture made an outstanding aggregate settlement payment of A\$3,464,053 to the vendors (less rehabilitation costs for the CGP), plus the issue of 5 million Austminex shares.

The final payment follows the receipt of all regulatory approvals for the acquisition and recent announcements by both companies regarding funding arrangements. Matador has secured C\$6 million in funding through a secured convertible debenture from fellow TSX-V listed Committee Bay Resources Limited (TSX-V: CBR), while Austminex has lodged a Prospectus to raise up to A\$5.88 million through the issue of 140 million shares at 4.2 cents. Austminex today issued 80,825,689 shares pursuant to this prospectus raising. The company has also extended the closing date for applications under the prospectus from the original $8^{th}$ August 2005 date to Friday 19^th August, 2005.

The ioint acquisition of the CGP signals the most significant regional amalgamation of tenement holdings in the Eastern Goldfields since the Kalgoorlie Super Pit concept was first envisioned in the 1980s, and is expected to revitalize gold exploration and development at Coolgardie by bringing a coordinated, regional approach to the newly consolidated tenement holdings for the first time in history.

Earlier this year, Austminex and Matador jointly exercised their options to acquire the CGP from Leviathan and Herald, and paid the initial purchase instalment of \$0.5 million in June 2005 plus the issue of 4.1 million Austminex shares to the vendors. A final cash payment of A\$500,000 plus interest is in February 2006.

Following the acquisition, the Joint Venture – known as the Redemption Joint Venture after one of the major regional gold structures at Coolgardie – controls a $210 \text{km}^2$ consolidated regional tenement holding (including Austminex's original ground holdings in the Coolgardie-Widgiemooltha region), a 1.4 million ounce resource inventory (Indicated Resources 5.3 million tonnes at 1.85 g/t and Inferred Resources of 13.93 million tonnes at 2.4 $g/t$ gold, refer Austminex prospectus dated 14 July 2005), plus the 1.2mtpa CGP treatment plant (currently on care and maintenance).

Austminex's Managing Director, Mr Peter Williams, said the Joint Venture would pursue an intensive and systematic exploration program at Coolgardie to establish a long-term reserve and resource inventory, bringing to fruition a concept for consolidation of the historically fragmented region first conceived by Austminex's Exploration Manager, Chuck McCormick, over a decade ago.

"This is an exciting period for Coolgardie and for both companies," Mr Williams said. "We will also have the benefit of significant technical and geological input from Matador, with a team of geologists from Canada currently in Coolgardie working on our extensive database for the region and prioritizing key targets. Matador has extensive experience in exploring prolific greenstone belts such as Coolgardie, where we believe there is significant potential for the discovery of further multi-million ounce orebodies."

Peter Williams Managing Director