Mr. Mario Stifano reports

CORDOBA MINERALS AND HPX DISCOVER SIGNIFICANT LATERAL EXTENSIONS OF COPPER-GOLD MINERALIZATION AT THE ALACRAN DEPOSIT IN COLOMBIA

Continuing drilling by Cordoba Minerals Corp. and its joint venture partner, High Power Exploration Inc., a private mineral exploration company indirectly controlled by mining entrepreneur Robert Friedland's Ivanhoe Industries LLC, at the Alacran copper-gold deposit has discovered significant new lateral extensions to known copper-gold mineralization, indicating significant potential for a large-tonnage open-pit copper-gold resource.

Drilling in the northern area of the Alacran deposit, within the company's San Matias copper-gold project in Colombia, has outlined significant widths of high-grade copper-gold mineralization starting near surface. Mineralization now extends over 250 metres laterally and remains open in all directions, highlighting the significant potential for further resource expansion over the 1.3 kilometres of strike drilled to date. Two active drill fences over 500 metres and 700 metres to the south of the initial lateral step-out drilling, and east of previous diamond drilling where ASA-037 intersected 42 metres of 2.83 grams per tonne gold and 0.43 per cent copper, have identified large zones of visible chalcopyrite-pyrite-magnetite mineralization, indicating the potential for similar lateral extensions including prospective gold-rich zones, significantly adding to the overall size of the copper-gold mineralized system.

Alacran drilling highlights:

• ACD-012 -- 224 metres at 0.5 per cent copper and 0.17 gram per tonne gold, including 78 metres at 0.74 per cent copper and 0.35 gram pert tonne gold;
• ACD-010 -- 171 metres at 0.51 per cent copper and 0.18 gram per tonne gold, including 35 metres at 0.8 per cent copper and 0.23 gram per tonne gold;
• ACD-013 -- 160 metres at 0.47 per cent copper and 0.11 gram per tonne gold, including 78 metres at 0.71 per cent copper and 0.15 gram per tonne gold;
• ACD-014 -- 109 metres at 0.51 per cent copper and 0.31 gram per tonne gold, including 54 metres at 0.9 per cent copper and 0.49 gram per tonne gold.

Mario Stifano, president and chief executive officer of Cordoba, commented: "The ongoing 10,000-metre drilling program at Alacran is continuing to successfully expand the size and scale of the deposit both on strike and laterally, and remains open, making Alacran potentially a large-tonnage open-pit deposit in what we believe is a prolific copper-gold system at San Matias. We have started phase two of the proprietary Typhoon technology deployment that will cover 14 square kilometres of the San Matias copper-gold project, including the southern area of Alacran, as we continue to aggressively explore the district with a total 20,000-metre diamond drilling program."

The Northern Alacran area was the focus of the five drill holes that were targeting both lateral and vertical extensions from previous drilling. Four holes successfully intersected large zones of copper-gold mineralization associated with both shallow and high-grade zones, and the mineralization remains open in all directions. The following is a discussion of each intersection:

• Drill hole ACD-010 was located on Section 855720mN where it tested the up-dip extensions of drill hole ACD-007 (169 metres at 0.48 per cent copper and 0.33 gram per tonne gold) as a 50-metre step-out. ACD-010 successfully intersected a large, continuous zone of copper-gold mineralization of 171 metres at 0.51 per cent copper and 0.18 gram per tonne gold, including 35 metres at 0.8 per cent copper and 0.23 gram per tonne gold, that remains open both up dip and down dip on section. This mineralization remains open to the south down plunge and up dip on section.
• Drill hole ACD-012 was also collared on Section 855720mN and tested between drill holes ASA-025 (down dip -- 68 metres at 0.5 per cent copper and 0.09 gram per tonne gold, and 131 metres at 0.52 per cent copper and 0.24 gram per tonne gold) and ACD- 007 (up dip -- 169 metres at 0.48 per cent copper and 0.33 gram per tonne gold). ACD-012 successfully intersected a large and continuous zone of copper-gold mineralization of 224 metres at 0.5 per cent copper and 0.17 gram per tonne gold, including 78 metres at 0.74 per cent copper and 0.35 gram per tonne gold, and indicates that the copper-gold mineralization on this section has good continuity with respect to grade and thickness.
• Drill hole ACD-013 was located on Section 855760mN where it has tested the up-dip lateral extensions to known copper-gold mineralization in drill hole ACD-009 (150 metres at 0.73 per cent copper and 0.49 gram per tonne gold) with a 50-metre step-out. ACD-013 successfully intersected a large, continuous zone of copper-gold mineralization of 160 metres at 0.47 per cent copper and 0.11 gram per tonne gold, including 78 metres at 0.71 per cent copper and 0.15 gram per tonne gold.
• Drill hole ACD-014 was also located on Section 855760mN and was collared 100 metres east of ACD-013 to test the lateral up-dip extensions. ACD-014 successfully intersected a large and continuous zone of copper-gold mineralization of 109 metres at 0.51 per cent copper and 0.31 gram per tonne gold, including 54 metres at 0.9 per cent copper and 0.49 gram per tonne gold, that remains open to the east and up dip.
• Drill hole ACD-011 was located on Section 855960mN and was designed to test a large induced polarization chargeability anomaly. Drilling intersected a large interval of altered sediments, volcanic rocks and diorite intrusive with abundant disseminated pyrite but no significant intersection of copper-gold mineralization. Interpretation of the geology and alteration suggests the drill hole was located on the northern side of an east-west-trending fault structure that offsets the copper-gold deposit at the most-northern parts of the known mineralization. The copper-gold mineralization is interpreted to be located farther east, where a coincident gold- and copper-in-soil anomaly is located.

Together, drill holes ACD-013 and ACD-014 indicate the lateral extent of the Alacran copper-gold deposit is significantly larger to the east than previously suggested, demonstrating potential for additional lateral extensions along the entire strike of the Alacran deposit.

Alacran copper-gold system

The Alacran copper-gold system is located within the company's San Matias copper-gold project in the department of Cordoba, Colombia. The Alacran system is located on a topographic high in gently rolling topography, optimal for potential open-pit mining. Access and infrastructure are considered favourable. Alacran is approximately two kilometres southwest of the company's Montiel porphyry copper-gold discovery, where drilling intersected 101 metres of 1 per cent copper and 0.65 gram per tonne gold, and two kilometres northwest of the Costa Azul porphyry copper-gold discovery, where drilling intersected 87 metres of 0.62 per cent copper and 0.51 gram per tonne gold. The copper-gold mineralization at Alacran is associated with stratabound replacement of a marine volcano-sedimentary sequence in the core of a faulted antiformal fold structure. The deposit comprises moderately to steeply dipping stratigraphy that is mineralized as a series of subparallel replacement-style or skarn zones and associated disseminations. The copper-gold mineralization is composed of multiple overprinting hydrothermal events with the main ore phase comprising chalcopyrite-pyrrhotite-pyrite that appears to overprint a large-scale early magnetite metasomatic event.

High-temperature potassic feldspar-biotite-amphibole-albite alteration in the host geological sequence indicates that the copper-gold mineralization is proximal to a source intrusion. At least two intrusive phases, locally occurring as sills, confirm an intrusive source for the mineralizing fluids. The overall size and complexity of the hydrothermal system indicate a significant mineralization event. Mineralization occurs within all members of the sedimentary and volcanic sequence, where it can be traced over a strike length of greater than 1,300 metres and local thickness of more than 90 metres of true width and upwards of 180 metres of true width from the current drilling and surface sampling.

Alacran exploration

A soil sampling program covering the entire Alacran project area has been completed consisting of 50-metre-spaced sampling centres on 100-metre-spaced sampling lines. The results for both copper-in-soil and gold-in-soil anomalism indicate the copper-gold mineralized system at Alacran to be much more extensive than previously suggested with dimensions of coincident copper and gold enrichment of significant levels being evident over plus 1,500 metres of strike length and with lateral widths of over 800 metres. The soil anomalism is particularly evident to the east of the previous drilling programs carried out at Alacran and has been the incentive for the lateral step-out drilling that has successfully located significant lateral extents to the Alacran copper-gold mineralization. The accelerated and expanded diamond drilling program at Alacran is to test these lateral extensions over the entire strike length of known mineralization and additional targets as an continuing aggressive drilling campaign.

About the San Matias project

The San Matias copper-gold project comprises a 20,000-hectare land package on the inferred northern extension of the richly endowed Mid-Cauca belt in Colombia. The project contains several known areas of porphyry copper-gold mineralization, copper-gold skarn mineralization and vein-hosted, gold-copper mineralization. Porphyry mineralization at the San Matias project incorporates high-grade zones of copper-gold mineralization hosted by diorite porphyries containing secondary biotite alteration, and various orientations of sheeted and stockwork quartz-magnetite veins with chalcopyrite and bornite. The copper-gold skarn mineralization at Alacran is associated with stratabound replacement of a marine volcano-sedimentary sequence. The nature of mineralization encountered at San Matias is similar to other large high-grade copper-gold deposits.

Technical information

The technical information has been reviewed, verified and compiled by Dr. Christian J. Grainger, PhD, a qualified person for the purpose of National Instrument 43-101. Dr. Grainger is a geologist with over 15 years in the minerals mining, consulting, exploration and research industries. Dr. Grainger is a member of the Australian Institute of Geoscientists and Australian Institute of Mining and Metallurgy.

All samples have been prepared and assayed at ALS laboratory in Medellin, Colombia, with gold assays being carried out as 50-gram fire assays with AAS finish, and all trace elements and base metals being assayed using four-acid digest with ICP-MS (inductively coupled plasma-mass spectroscopy) finish. Copper-equivalent values have been calculated using a $1,350-(U.S.)-per-ounce gold price and $2.20-(U.S.)-per-pound copper price. The company utilizes an industry-standard quality assurance/quality control program. HQ and NQ diamond drill core are sawn in half with one-half shipped to a sample preparation lab. The remainder of the core is stored in a secured storage facility for future assay verification. Blanks, duplicates and certified reference standards are inserted into the sample stream to monitor laboratory performance, and a portion of the samples are periodically checked for assayed result quality.

Joint venture agreement

The San Matias project is a joint venture between Cordoba and HPX, a private mineral exploration company founded by mining entrepreneur Mr. Friedland. HPX has entered phase two of the joint venture agreement, whereby HPX can earn a 51-per-cent interest in the San Matias project by spending an additional $10.5-million, bringing total expenditures to $19-million, and can earn up to a 65-per-cent interest in the project by carrying it to feasibility.

          INITIAL DIAMOND DRILL HOLE RESULTS AT THE ALACRAN PROJECT (1)     
                                                                           
                     From      To     Interval     Copper      Gold          Copper
Drill hole             (m)     (m)      (m) (2)        (%)     (g/t)   equivalent %

ACD-010                 6     177          171       0.51      0.18            0.68
Including               6      64           58       0.39      0.33
                       77     123           46       0.73      0.08
                      142     177           35       0.80      0.23
And                   202     221           19       0.23      0.03
ACD-011               NSI
ACD-012                11     235          224       0.50      0.17            0.66
Including              11      40           29       0.80      0.09
                       46      65           19       0.36      0.08
                       70      99           29       0.57      0.13
                      115     193           78       0.74      0.35
                      217     235           18       0.25      0.10
ACD-013                 0     160          160       0.47      0.11            0.57
Including               0      78           78       0.71      0.15
                      123     160           37       0.45      0.13
ACD-014                 1     110          109       0.51      0.31            0.79
                       39      93           54       0.90      0.49
        
(1) True-width intervals of the mineralization are interpreted as being between
90 per cent to 100 per cent of true widths from oriented diamond drill core and      
sectional interpretation.                                              
(2) Intercepts calculated at 0.35-per-cent copper equivalent cut-off with maximum
internal dilution of five metres.                                         
(3) Bulk intercepts calculated at 0.35-per-cent copper equivalent cut-off, no
maximum internal dilution.  

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