FOCUS MINERALS LTD — Capital/Financing Update 2005

AUSTMINEX ADVANCES \$5.88M RAISING AS MATADOR SECURES FUNDING FOR COOLGARDIE ACQUISITION

REDEVELOPMENT OF HISTORIC GOLD FIELD SET TO COMMENCE

WA-based gold company Austminex Ltd (ASX: ATX) today confirmed that its Canadian-based joint venture partner, Matador Exploration Inc (TSX-V: MXN), has secured C\$6 million in financing to fund its share of the Coolgardie Gold Project ("CGP") acquisition, a transaction that will establish unified ownership of the historic Coolgardie gold belt for the first time and lay the foundation for its redevelopment.

To fund its share of the acquisition cost, Austminex lodged a Prospectus with the Australian Securities and Investments Commission (ASIC) on 14 July 2005 to raise up to \$5.88 million through the issue of 140 million shares at an issue price of 4.2 cents each. The issue, which is being managed by Perth-based merchant bank, Azure Capital Pty Limited, has a minimum subscription level of A\$3 million.

Completion of the respective capital raisings will represent the final step in the most significant regional amalgamation of tenement holdings in WA's Eastern Goldfields since the Kalgoorlie "Super Pit" concept was first envisioned in the 1980s, Austminex – soon to be renamed Focus Minerals Limited – and Matador last month exercised options to jointly acquire the CGP from Leviathan Resources Limited and Herald Resources Limited.

Matador has secured funding for its A\$3.3 million share of the acquisition related costs, and to cover the A\$2.7 million it has committed to spend on exploration at Coolgardie during the first 12 months, via a C\$6 million secured convertible debenture from fellow TSX Venture Exchange-listed company, Committee Bay Resources Limited (TSX- $V:$ CBR).

On 12 July, Committee Bay and Matador announced plans to merge through an all-scrip transaction, with Committee Bay agreeing, subject to conditions, to provide financing to Matador by way of a secured C\$6 million convertible debenture. Drawdown on this debenture was contingent on Committee Bay closing a C\$6 million private placement arranged through a syndicate of investment dealers led by Canaccord Capital Corporation. This placement has now been finalised, enabling Matador to draw down on the C\$6 million convertible debenture to meet its share of the acquisition costs and exploration commitments at Coolgardie.

Austminex and Matador paid an initial purchase instalment for the CGP in June 2005 of A\$500,000 to Herald and Leviathan and issued the vendors a total of 4.1 million Austminex shares. The outstanding A\$3.6 million aggregate settlement payment - plus 5 million Austminex shares less the estimated costs of rehabilitation required for the Coolgardie Gold Project operations $-$ to complete the acquisition is due by 8 August 2005, subject to regulatory approval and financing. A final cash payment of A\$500,000 plus interest, is due 6 months later.

At settlement, the joint venture between Austminex and Matador - known as the Redemption Joint Venture after a major regional fault structure which hosts some of Coolgardie's best known gold deposits – will have the mineral rights to more than 210km² of under-explored tenements including Indicated and Inferred Resources totaling 1.4 million ounces of gold (Indicated Resource of 5.32 million tonnes at 1.85 g/t gold and Inferred Resource of 13.93 million tonnes at 2.47 $g/t$ gold (refer to Prospectus announced on 14 July 2005)) and a 1.2mtpa processing plant in one of the world's most significant mining regions.

Austminex's Managing Director, Mr Peter Williams, welcomed the merger of Matador and Committee Bay, saying the combination of the two companies would provide Austminex with a larger partner with a market capitalisation of some C\$27 million, with enhanced access to capital markets. "The funding and technical input the Redemption Joint Venture already has in place will enable us to do justice to the exploration potential of the project, and will enable a coherent regional exploration program to be implemented," he said.

Peter Williams Managing Director