Mr. Anton Drescher reports

XIANA MINING INC. ANNOUNCES $700,000 FINANCING, DEBT SETTLEMENT AND EXPLORATION ON DEBORAH PROPERTY

Xiana Mining Inc. has arranged a non-brokered private placement of common shares in the capital of the company at a price of five cents for gross proceeds of up to $700,000.

Finders' fees may be payable in connection with the completion of the private placement in accordance with the policies of the TSX Venture Exchange.

In addition to the private placement, the company and various creditors, including certain related parties, have agreed to the restructuring and settlement of outstanding debts totalling approximately $1.3-million. The $1.3-million of the debt will be restructured into long-term obligations of the company, without interest or payment obligations, and will be settled into shares at a deemed price of five cents per share, subject to shareholder and regulatory approval as may be required in connection with the policies of the TSX Venture Exchange. The remaining company debts will be retired from the proceeds of the private placement.

The closing of the private placement and the shares for debt are subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the exchange.

The net proceeds of the private placement after retiring debt will be used on a new work program on the company's Deborah property in the Cajamarca region of the northern Peru copper-gold porphyry-epithermal belt. The work program will consist of trenching, sampling and geophysics. It is anticipated that the work program will require $100,000 to complete and will take approximately 30 to 45 days.

We seek Safe Harbor.