Magnus International Resources Updates on Exploration Progress in Uganda: Financial News

Magnus International Resources Updates on Exploration Progress in Uganda
Thursday August 21, 2008 12:01 am ET

VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Aug 21, 2008 -- Magnus International Resources, Inc. ("Magnus" or the "Company") (OTC BB:MGNUE.OB - News) is pleased to provide an update on its exploration activities in Uganda.

Mashonga Project (gold and PGE's):

The initial stage of the RC drilling at the Mashonga Project is now complete, with 7 holes drilled at the Mashonga open-slot mine and artisanal workings, where high grade gold, together with high grade platinum, palladium and silver grades, were recorded from a shear zone. A total of 667m have been completed and some 89 samples have been submitted to the labs at SGS Mwanza in Tanzania for fire assay for gold, platinum and palladium. A further 252 samples are awaiting dispatch to the laboratory. Magnus anticipates that the results will be received within the next three weeks.

Two holes were drilled beneath the open pit itself, while four holes were drilled to the east of the pit, along the interpreted strike extension of the mineralised zone. A seventh hole was planned to target artisanal workings west of the main Mashonga pit, but this hole was abandoned at about 25m after some buried artisanal workings were intersected. The company had no previous knowledge of these workings, and although disappointed that the hole could not be completed, we are nevertheless encouraged by this further evidence of historical gold mining activity in the area.

The holes completed indicate a sequence of sericite schist in contact with a mafic schist and granite-pegmatite-quartz veining. Sulphide mineralisation in the form of disseminated pyrite has been observed within each of the holes. This geological setting is similar to the mineralised schists that host the high grade gold and PGM's in the shear zone at the Mashonga mine.

The next stage of drilling at Mashonga will target a gold soil anomaly trending in a south-east direction, located about 1km east of the mine site. Due to the difficult drill conditions encountered at Mashonga, the drill contractor is taking the opportunity to undertake maintenance and this planned 1,200m program will commence in early September.

Generative Projects (diamonds, phosphates, vermiculite, uranium and tantalum):

Over the last few months, Magnus has also identified new mineral opportunities covering virgin exploration regions in central Uganda. These targets have resulted from detailed interpretation of airborne magnetic and radiometric data, from a geophysical survey flown by Fugro which will eventually cover 80% of the country. The airborne survey is part of a sustainable development program in Uganda, funded by the World Bank, African Development Bank and Nordic Bank.

At the Kigumba licence, with an area of 363 sq km, a large linear uranium anomaly was identified which measures 22km in length and up to 400m wide. The geophysical interpretation is that the anomaly is related to a shear zone along the limb of a major fold structure.

The Kidera licence covers an area of 485 sq km, and will target possible diamonds and industrial minerals such as phosphate, tantalum and vermiculite, from interpreted kimberlites and carbonatite complexes. A large circular radiometric anomaly has been identified, measuring 7km by 5km, situated within an identified 50km by 35km circular domal feature. This significant anomaly has similarities to the Sukulu Hills and Tororo carbonatite complexes in south-eastern Uganda, which host important vermiculite and phosphate deposits.

Magnus has also acquired a licence covering 23.28 sq km over the Nyanga tantalum target, which is one of the largest tantalum deposits in Uganda. This represents a significant opportunity for evaluating the tantalum resources at Nyanga and for discovering additional satellite tantalum pegmatite deposits on the property.

A reconnaissance program at each of these new project areas outlined above is planned for the next quarter.

Lugazi Project (gold):

The Lugazi Project is located within a northeast trending section of the Buganda-Toro belt, an early Proterozoic sequence of sericitic schists, quartzites and intercalated mafic rocks. The drilling at Lugazi investigated a 300m - 700m wide gold-in-soil anomaly at three localities over a distance of at least 3.5km. This anomaly is coincident with a magnetic rich horizon along a NE strike direction.

The drill program comprised a total of 31 holes for 2,037m and was completed along three lines at the Kiyola, Nantula and Katente targets. The RC holes were drilled at about 50m intervals along a fence across the soil anomaly, and were designed to investigate the nature of the weathered profile to an average depth of some 65m. As no previous gold mineralisation has been reported from this belt the Company thought it would be important to understand the source of the anomalous gold in soils and attempt to identify possible structures that could be followed up during subsequent phases of exploration. This drilling is the culmination of early stage exploration at Lugazi which commenced in May 2006. Composited 3m samples were initially submitted to an analytical laboratory in Mwanza, Tanzania. Intersections which reported gold values in excess of 0.3g/t over 3m were identified and the 1m split samples were re-submitted to the laboratory.

The most significant RC drill results include:

 

- 4m at 0.98g/t gold from 18m in LUG006 at the Kiyola target
 (incl. 2m at 1.3g/t)
- 2m at 0.50g/t gold from 64m in LUG007 at the Kiyola target
- 2m at 1.50g/t gold from 2m in LUG017 at the Nantula target
- 2m at 1.20g/t gold from 9m in LUG028 at the Katente target

A program of ongoing regional soil geochemistry covering the remaining 1,359 sq km of the Lugazi project has uncovered an additional zone of anomalous gold in soils over a length of 2.4km along a north-south line with gold values averaging 20ppb. The regional lines were spaced at 4km intervals, so a detailed infill program is planned to investigate the extent of this new gold anomaly.

Mr. Gavin Conway, Magnus' VP Exploration, commented on the Lugazi results, "We are encouraged by some of the results from the RC drill program at Lugazi. The Lugazi belt has shown no historical gold exploration, and the Company has been at the forefront in discovering potential new zones of gold anomalism on surface. Due to the scarcity of any rock outcrops on the project, and with no direct means to identify sources of the gold-in-soil anomalies, the RC program was designed to investigate the distribution of anomalous gold in the upper 50m and to profile any anomalous gold patterns in this upper weathered zone. We feel that the mineralised intersections may point to supergene gold, but that a primary source for this gold requires investigation through a second phase of deeper holes. We are also encouraged by the results of our regional geochemical program which have uncovered potential new gold targets on other parts of the Lugazi belt. The Company will continue to explore these anomalies in more detail."

About Magnus International Resources, Inc.

Magnus International Resources, Inc. (OTC BB:MGNUE.OB - News) (www.magnusresources.com) specializes in identifying, acquiring and developing precious and base metal properties. Magnus' objective is to develop a balanced portfolio of early-to-advanced stage projects. Through its wholly-owned subsidiary, African Mineral Fields, Magnus has rights to ten Ugandan gold projects. The Company has a 100% interest in eight of the projects, is earning a 60% interest in a further property and has the right to earn an 80% interest in the tenth property. Subject to the consummation of the agreement described in the news release on June 4th, 2008, Magnus also retains a 90% interest in a Sino-foreign joint venture gold exploration project at Huidong in China.

For further information please refer to the Company's filings with the SEC or on SEDAR or refer to Magnus' website at www.magnusresources.com.

If you would like to receive regular updates on Magnus please send your email request to info@magnusresources.com.

The qualified person under National Instruments 43-101 is Gavin Conway, VP-Exploration for Magnus International Resources, who is responsible for the contents disclosed in this news release.

FORWARD LOOKING STATEMENTS: This news release may include "forward-looking statements" regarding Magnus International Resources, Inc., and its subsidiaries, business and project plans. Such forward looking statements are within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the United States Securities and Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor created by such sections. Where Magnus expresses or implies an expectation or belief as to future events or results, such expectation or belief is believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to price volatility of gold and other metals; currency fluctuations; political, operational, and governmental approval and regulation risks in China and certain African countries. For a more detailed discussion of such risks and other factors, please see "Risk Factors" in our Form 10K for our most recently completed fiscal year, on file with the SEC at www.sec.gov. This document also contains information about adjacent properties on which Magnus has no rights to explore or mine. Investors are cautioned that mineral deposits on adjacent properties are not necessarily indicative of mineral deposits on Magnus' properties.