Mundo Minerals Limited (ASX: MUN)

Mundo Minerals Limited (ASX: MUN - "Mundo") is pleased to advise that it has completed the maiden gold pour at its 100%-owned Engenho Gold Mine in Brazil. The gold pour (see photo below) was completed yesterday evening, representing effective completion of all commissioning processes.

The Engenho Gold Mine is now assessed as being fully operational, completing Mundo's transition to full production and cash flow.

This gold has now been sent for refining prior to delivery to the bank.

Plant availability continues to be excellent and mine development is approximately 9 months ahead of actual mining, ensuring that maximum flexibility of access to the ore body is maintained. Decline development has progressed to enable the main Engenho ore body to be accessed under the existing open pit, with the second level from this access currently being developed. This will enable current production from the existing open pit wall to be supplemented by production from the primary underground orebody over the next two months.

The successful commissioning of the Engenho Project and maiden gold pour represent significant milestones for Mundo Minerals, establishing the Company's first production asset and providing a strong foundation for its growth strategy in South America.

John Langford

Chief Executive Officer

Competent Person's Statement

The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr Jean-Marc Lopez who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Lopez is employed by Mundo Minerals Limited and is the Company Exploration Manager. Mr Lopez has sufficient experience which is relevant to the style of mineralisation and the type of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.

Background Information

Mundo Minerals Limited is an Australian-domiciled international gold company focused on the exploration and development of a portfolio of advanced, high-quality gold assets in South America.

Mundo is aiming to commence initial production at its flagship asset, the Engenho Gold Project in Brazil, by April 2008, laying the foundations for its growth strategy as a mid-tier Australian-domiciled producer focused on small-to-medium sized high-grade ore bodies in South America.

The A$13 million Engenho Project, which is located in the State of Minas Gerais in Brazil, was previously operated by AngloGold Ashanti Limited which closed it in 2004 after treating some 171,257 tonnes of ore from an open pit through a conventional Carbon-in-Pulp (CIP) treatment facility.

Mundo's other assets in South America include the 100%-owned Torrecillas Gold Project in Peru and the Tocantins Gold Project in Brazil. These projects have the potential to yield multiple resources to underpin the Company's long-term growth.

The Torrecillas Project comprises some 9,000ha of tenements with a history of high-grade gold production in south-eastern Peru, a region which hosts a number of small-to-medium sized gold mines, including the Area, Capitana, Arirahua, Alcapay and Laytaruma operations - each of which have a production range of 25,000 - 80,000oz per annum. An exploration decline is currently being developed to assess the high-grade, narrow vein gold mineralization at Torrecillas.

The Tocantins Project is a joint venture between Mundo (51% interest) and Gamaleira Prospeccao E Geologia Ltda (a Brazilian joint venture between AngloGold Ashanti and IAMGOLD Corporation) (49%). Mundo can increase this equity to 80% by taking any gold resource to a bankable feasibility study. The Tocantins tenements are located in a highly prospective region which includes three greenstone belts with the potential to contain multiple mid-size gold deposits.

Exploration to date has identified significant zones of gold mineralization at Concei??o, within the Tocantins Joint Venture. Mundo Minerals has also secured a strategic new gold exploration project at Nova Prata as part of the Tocantins Joint Venture, and is assessing an advanced gold production opportunity at the Jaqueira Project in Bahia State, Brazil.

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