Mr. Ronald Coombes reports

PROVIDENCE GOLD MINES INC. OPTIONS LA DAMA DE ORO GOLD PROPERTY

Providence Gold Mines Inc. has entered an option agreement to acquire La Dama de Oro gold property. The property is a historical gold mine 100 per cent owned by the optionor Mohave Gold Mining, a private company incorporated under the laws of the State of California.

Providence recently commissioned Ethos Geological Inc. of Bozeman, Mont., to complete a National Instrument 43-101 technical report, written by Zachary Black, SME-RM, acting as the qualified person under NI 43-101. The NI 43-101 technical report has been submitted for exchange review and approval. A cautionary note: The property is at an early exploration stage and does not have sufficient data for a mineral resource.

La Dama de Oro property is situated in the Silver Mountain mining district within the structurally complex eastern California shear zone and the intersection with the San Andreas fault zone. Bedrock geology includes Mesozoic quartz monzonite that intrudes the Jurassic sidewinder volcanics. The structural history of the region implies a sequence of compressional and extensional events that reactivated favourably oriented zones of weakness for the circulation of hydrothermal fluids. The main zone of mineralization is hosted by La Dama de Oro fault, a shallow northeast-dipping oblique-slip fault.

The mineralization at the property is classified as a structurally controlled, low-sulphidation epithermal gold-silver vein system. Gold and silver mineralization is associated with multiphase quartz veining, brecciation and pervasive hydrothermal alteration along La Dama de Oro fault. The largest known vein is 4.5 feet at its widest point and remains open to exploration, with the potential for additional undiscovered veins along the fault system. The property has an approved exploration permit that includes a bulk sample.

The option entitles the company the right to purchase 100 per cent of La Dama de Oro gold property under the following terms.

Year 1

Within 15 days of regulatory approval, the company shall issue two million common shares from treasury and incur $20,000 in expenditures within 12 months of the effective date.

Year 2

The company shall issue an additional two million common shares from treasury and incur $250,000 in expenditures before the second-year anniversary of the effective date.

Year 3

The company shall issue an additional 500,000 common shares from treasury and incur a further $250,000 in expenditures before the third-year anniversary date of the effective date.

Year 4

The company shall incur an additional $250,000 expenditures before the fourth-year anniversary of the effective date.

Ronald A. Coombes, president and chief executive officer of Providence, commented: "The best place to explore for gold is where gold is. With the rich historical history of past gold production at the La Dama de Oro mine, there remains very good discovery potential."

The scientific and technical information contained in this news release has been reviewed and approved by Zachary Black, SME-RM, a qualified person as defined under NI 43-101. Mr. Black is a consultant and is independent of Providence.

We seek Safe Harbor.