Gold Exploration in West Africa

[FL]

Ghana-Midlands Minerals granted new gold concession on Asankrangwa gold belt

[ Note: Midlands Minerals has been traded on the Toronto Venture Exchange as "MEX" for about a month. The board header has been altered to show this. The price of MEX declined from C$0.50 to about C$0.20 during the month. FL ]

Kim Harris, Chief Executive Officer of Midlands Minerals Corporation (TSX VENTURE:MEX - News; "Midlands" or the "Company") is pleased to announce the company has been granted a Reconnaissance License for gold exploration in Ghana. The Kaniago Concession is located on the Asankrangwa Gold Belt in Ghana, and is approximately 25 km east of AngloGold Ashanti's Bibiani Mine with a recorded historical production of 3.2 million oz of gold and reported current reserves of 1.9 million oz. The property is located about the same distance from Obuasi Mine which is to the east of Kaniago and Ayanfuri which is to the south-east of this new Midlands concession. AngloGold Ashanti's Obuasi/Ayanfuri mines have a recorded historical production of over 29 million oz of gold and recorded current reserves of 34 million oz of gold. Kaniago concession is contiguous to Resolute Mining Company's Obotan Mine.

This concession is in addition to Midlands' 109 sq km Kwahu Praso Gold property which is located on the northeast end on Ashanti Gold Belt. Kwahu Praso is approximately 30 km northwest of Newmont Mining Company's Akyem gold deposit which is reporting at least 4.3 million oz of gold. Kwahu Praso is 6 km from the Sian Goldfields open pit mine which is reporting reserves of 500,000 oz of gold.

The license was granted on 45.14 sq km. Midlands holds 100% right title on the concession with no local partners. The government of Ghana holds the right to a statutory 10% free-carried interest.

The concession is underlain by Birimian metasediments intruded by basic epidiorite, gabbro and dolerite as well as granitoids made up of dixcove granite and quartz porphyries. The mineralization, as observed by Geodita Resources Limited, is located within shear zones along margins of the intrusives and zones of alteration.

Previous work on the property includes geochemistry carried out in 1997 by Kiwi Goldfields Limited. At that time, 2,529 soil samples were collected and three regional mineralized corridors were identified within which 13 mineralized trends were defined. Average results, as reported by Kiwi Goldfields in the Terminal (1997) Report, ranged from 50 Au ppb to 100 Au ppb.

Midlands continues to regard Ghana as a good location for gold prospects given the amount of foreign direct investment going into the mining sector in Ghana. The company's selection of new acquisitions for mineral rights in Ghana is based on an assessment of the prospective geological potential of each area selected as well as proximity to known gold deposits.

The TSX-V has in no way passed upon the merits of the new concession and has neither approved nor disapproved the contents of this Press Release.

Contact:
Midlands Minerals Corporation
Kim Harris
Managing Director and CEO
[phone]
Fax: [phone]
[e-mail]
http://www.midlandsminerals.com
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