Planet Exploration (fka PXI.V)

[Tackler]

Planet Exploration to acquire interest in Wulanbulang

2004-03-26 07:10 ET - News Release

Mr. Ranjeet Sundher reports

PLANET SIGNS FORMAL CHINA CONTRACT; ADDS SECOND DRILL RIG TO THE SIDACE LAKE PROGRAM

Planet Exploration has signed the formal agreement to acquire an 80-per-cent interest in the Wulanbulang gold property, as well as an option to acquire three mining licences and a mill located within the property. The property is located in the Jiuyuan district of Baotou, 20 kilometres from the city of Baotou, which is 600 kilometres west-northwest of Beijing.

Ranjeet Sundher, president of Planet Exploration, has recently returned from Beijing, where he signed the formal agreement with Planet's Chinese partner, China National Gold Group Corporation, represented by its subsidiary Jinyou Geological Exploration Ltd.

Mr. Sundher comments: "The signing of the formal contract is a major milestone for Planet. Recent months have seen an influx of Canadian juniors into China signing preliminary deals but very few to my knowlege have reached a formal agreement. Planet began reviewing projects in China over one year ago, and after our field visit and due diligence, began negotiations and was ultimately successful in acquiring Wulanbulang." Mr. Sundher continued, "Given the abundance of mineralized and altered shear zones, including the several producing areas, the Wulanbulang property would appear to offer good potential to host larger-scale economic gold mineralization." For full project details see Planet's news in Stockwatch dated Nov. 24, 2003.

Planet's initial exploration program on the Wulanbulang project will commence within the next 10 days under the supervision of Planet's Canadian geologist. Initial work will focus on geological mapping and sampling in addition to providing a compilation of existing data.

Sidace Lake

Planet has commenced a new program of diamond drilling on the Sidace Lake project and has commissioned a second drill rig scheduled to begin drilling within the next 10 days in order to pursue the numerous targets identified.

Planet also wishes to clarify results reported for hole RL-04-37 (see news in Stockwatch dated March 8, 2004). The interval 579 metres to 587.10 metres reported 14.47 grams per tonne over 0.8 metre. The reported grade and width are accurate, however, the entire interval should have been reported as follows:

 
  
   From         To        Gold      Width 
      m          m         g/t          m 
  
 579.00     581.00        2.53       2.00 
 586.30     590.00        3.45       3.70 
 586.3      587.10       14.47       0.80