Drill Program starts on San Jose high-grade shoot, looking to increase 68.8 million ounce Ag-Au resource prior to start of production
April 3, 2007: Continuum Resources Ltd. (TSX-V: CNU) is pleased to announce the start of an aggressive Diamond drill program at the San Jose silver-gold deposit located in Oaxaca, Mexico. San Jose is being explored and developed under a joint venture between Continuum Resources Ltd. (24%) and Fortuna Silver Mines Inc. (76%). The drill program follows on a very positive resource calculation carried out after the completion of the 2006 drill program which has proven San Jose to be a significant silver-gold resource with much upside on the deposit, and district scales.
The joint venture expects to drill over 20,000 meters of core during the course of the year. Two surface drill rigs are currently working on site and a third rig is expected in the coming weeks. Underground drilling is also planned to start in the near future.
The drill program has, as its objectives:
� Expand the size of the existing resource in the Trinidad zone, which remains open in two directions. In a previous press release (see press release dated March 12, 2007) the following resource was reported based on drilling to that time:
Indicated Mineral Resources: 1.47 million tonnes grading 262.6 g/t Ag + 2.19 g/t Au containing 17.7 million Ag equivalent oz
Inferred Mineral Resources: 3.9 million tonnes grading 260.6 g/t Ag + 2.57 g/t Au containing 49.1 million Ag equivalent oz
� In-fill drilling of the Trinidad zone to increase the size of the measured and indicated resource;
� Continue exploring and drill testing over two kilometers of vein structure along the longitudinal extent of the mineralized system within the joint venture property.
In addition to the drill program focused on San Jose's Trinidad ore shoot, and the concurrent drill testing to discover other, associated ore shoots in the San Jose deposit, the joint venture will now begin exploring its large land package in the San Jose area. Field crews are now conducting geological mapping and prospecting, and geochemical sampling on the 30,000 hectare Monte Alban II concession which holds multiple untested exploration targets. Monte Alban II covers a large area around the San Jose claims that host the Trinidad zone and vein system.
Concurrent with the exploration programs the joint venture is advancing with engineering design, mine planning and mine contractor selection for the underground development that is scheduled to start in the second quarter of the year.
Lawrence Dick, Ph.D., P.Geo., Vice President of Exploration for Continuum states " We are very excited about launching this aggressive program which includes advanced exploration activities such as infill drilling, and also pre-development activities such as underground work, towards making San Jose a significant gold and silver producer in an area of excellent infrastructure. These activities, combined with a more regional approach to exploring our large landholdings surrounding San Jose, bode well not just for the success of the project, but also for providing our shareholders with a flow of exploration results throughout the coming year."
Qualified Person
The Qualified Person for this project, under the definition established by National Instrument 43-101, is Lawrence Dick, Ph.D., P.Geo., Vice President Exploration for Continuum Resources Ltd. Geochemical assays are carried out by ALS Chemex in North Vancouver, B.C.
Background
Continuum Resources Ltd is a gold-silver exploration company who's principal focus is the discovery and definition of gold and silver-bearing, epithermal deposits in the state of Oaxaca, in southern Mexico. The Company's other major asset is the Natividad gold-silver deposit, where underground drilling and tunneling, and surface exploration are currently being carried out. For more information please visit our web site at www.continuumresources.com.
The TSX Venture Exchange has not reviewed and does not take responsibility for the adequacy or accuracy of this release.
ON BEHALF OF THE BOARD,
"Lawrence A. Dick"
Lawrence A. Dick, Ph.D., P.Geo.
Vice President Exploration and Director
Continuum Resources Ltd.
Renmark Financial Communications Inc.
Christina Lalli : clalli@renmarkfinancial.com
Barry Mire : bmire@renmarkfinancial.com
Tel. : (514) 939-3989
Fax : (514) 939-3717
www.renmarkfinancial.com
