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Pencari Options Significant Uranium Prospective Land in
Madagascar
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Pencari Mining Corp ( Pencari) (TSX-V: PMC) is pleased to announce that
it has increased its land holdings in Madagascar. Pencari now holds a
total of 12 properties, 8 of which are prospective for uranium for a
total land size of approximately 32,000 square kilometers or 3.2
million hectares.

Pencari has acquired four properties collectively called the Morondava
uranium properties, covering approximately 2,718 square kilometers in
western Madagascar. The Morondava form four separate contiguous
properties covering segments of the 600 kilometer long Morondava
sedimentary basin. This is a sandstone-dominated Jurassic-Cretaceous
aged basin forming part of the Karoo Supergroup and is considered
highly prospective for uranium deposits. Extensive uranium exploration
was undertaken in the Morondava basin by the French government agency
Commisariat de L'Energie Atomique (CEA) in the period 1958--1962. This
was resumed by OMNIS, a Madagascar government organization, in the
period 1976-82. Work included aerial surveys, ground detailing and
drilling. In 1999-2000 COGEMA, a wholly owned subsidiary of CEA,
continued uranium exploration in the southern part of the Morondava
Basin. It was concluded from this historic work that the Karoo system
of Madagascar is considered to have the potential for several
sedimentary sandstone type uranium deposits.

Pencari has increased its Betroka property to 18,925 square kilometers.
The majority of this property forms a contiguous unit. Recent
geological mapping by GAF, AG and BGR (a UN funded geological mapping
program) has revealed uranium-thorium mineralization in association
with several metamorphic units.

Pencari has acquired several uranium properties in the Betafo-Antsirabe
and Fianarantsoa area of west central Madagascar. These properties
cover a collective total of 5,744 non-contiguous square kilometers. The
CEA began exploring for uranium in this area in the early 1900's with
the discovery of concentrated uranium mineralization in a lacustrine
basin (lake bottom) near Antsirabe. A small mining operation produced
uranium from these for the French government intermittently over the
period 1909 -- 1952. Historic exploration has revealed the presence of
uraniferous niobo-tantalite mineralization, including rare specimens of
betafite. Some of these bodies have been exploited by small mining
operations.

Several samples were taken from the Betafo property, over a distance of
2.5 kilometers, and from the Betroka property. A geological and
geochemical program including radiometric analysis is currently
underway on several of our properties. The company will release results
as they become available.

>From 1960 until 2002 very little exploration activity took place until
new mining laws were adopted in 2005. The current leadership of
Madagascar has moved forward with new legislation that is designed to
encourage exploration and development by creating a stable and
attractive political environment conducive to foreign investment.

There are two major projects underway. Dynatec has committed to a $2.5
billion development of the Ambatovy nickel deposit. Rio Tinto is in the
process of developing the $1 billion Limonite titanium deposit. These
projects will improve the basic infrastructure in Madagascar,
increasing the viability of future exploration successes.

Pencari Mining made an initial investment in Madagascar by way of an
option agreement with Itea Minerals Inc. Under the option agreement any
properties owned by Itea Minerals Inc., along with any additional
properties acquired, will be included in the option agreement. Pencari
has assembled a highly experienced team for Madagascar. This team is
led by Chief Geologist Marc-Andre Boudreau, PGeo, who has been working
in the region since the mid-1990's. Some of the team members include
Lalaina Robson, a Malagache geologist with over twenty years of
experience and Tovo Ratimbarison, an administrator who is familiar with
the Malagache government institutions and corporate laws. In addition,
Jerry Blackwell, PGeo., a director, and Jack Charlton, PGeo., a
consulting geologist, are providing technical assistance to our
exploration programs.

Our team has been active in Madagascar since 1997, evaluating,
prospecting and acquiring land. Pencari currently holds four
prospective gold properties totaling 3,387 square kilometres and eight
properties that are prospective for uranium totaling 29,019 square
kilometres. Pencari has begun a comprehensive geological and
geochemical program including radiometric analysis of its properties.
Information for this new release was provided by Marc-Andre Boudreau,
P. Geo., a qualified person under NI 43-101.

Pencari is a gold exploration and development company publicly traded
on the TSX Venture Exchange.

PENCARI MINING CORPORATION

For further information contact Mr. Adrian Rollke at the Company:
Telephone: 604-683-2808, Facsimile: 604-683-2286, e-mail:
info@pencarimining.com.

The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release. This
news release may contain forward looking statements based on
assumptions and judgments of management regarding future events or
results that may prove to be inaccurate as a result of exploration and
other risk factors beyond its control, and actual results may differ
materially from the expected results.

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Copyright (c) 2007 PENCARI MINING CORPORATION (PMC) All rights
reserved. For more information visit our website at
http://www.pencarimining.com/ or send mailto:info@pencarimining.com
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