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May 26, 2003
Initial Drill Results From Lobo Project
Excellent Gold Grades and Widths Intersected

Tony Climie, P. Geol., President of Mindoro Resources Ltd. ("Mindoro"), is pleased to advise results for the first four drill holes, and partial results of a fifth, from a diamond drill program on the Lobo Project ("Lobo"), Philippines. Mindoro may earn a 75% interest in Lobo from Egerton Gold Philippines Inc., a private Philippine company.

As previously reported (release of September 16, 2002), there are two major epithermal vein / breccia trends at Lobo: the Sampson and Camo Trends, about 0.8 km apart, and each extending for at least 2 km. Reconnaissance rock sampling indicates that high gold-(copper-silver) values occur widely distributed along these trends, as well as associated with several other trends that have been only partially defined to date. Work is currently focusing on the SW Breccia Zone ("SWB"), in the southwest of the Camo Trend (see accompanying figure), where high gold values were previously reported (March 19, 2003) from trench sampling.

Drill results received include a weighted average grade of 8.32 grams per tonne (g/t) gold over 13.30 meters (m) from hole LB-03; 9.62 g/t gold over 17.35 m from LB-04, and 14.28 g/t gold over 13.75 m from LB-05 (partial results only-ended in mineralization). Holes LB-01 and LB-02 drilled into a locally eroded part of the mineralized breccia zone and did not encounter significant mineralization. Drill hole locations appear on the accompanying figure. A full listing of all drill results is available with this release on Mindoro's website (select this link to access complete drill results).

LB-01 (10100N, 10016E, minus 45 degrees grid east) was drilled to test the depth extension of high-grade gold mineralization in Dita Trench 1. Minor values were encountered (maximum 2.84 g/t gold over 0.9 m). A reinterpretation of geology indicates that this hole, and LB-02, were drilled into an erosional window on the steep hillside; ie, from which the main body of mineralization had been eroded, leaving only a remnant keel that was sampled in Trench 1. It is believed that drilling further down, and along, slope will intersect the mineralization (see accompanying Schematic 3D Model).

LB-02 (10101N, 10041E, vertical) was drilled from the Trench 1 site, and passed though a very thin (less than two m) keel of the eroded quartz-barite-sulphide breccia. As with LB-01, it was within the erosional window. Both LB-01 and 02 encountered non-siliceous hydrothermal breccias and hydrofractured zones in intensely altered andesitic volcanics, consistent with being within a strongly mineralized system. LB-03 (10172N, 10041E, minus 45 degrees grid east) was drilled to test high-grade gold mineralization encountered in Dita Trench 2 (19.1 g/t gold over 11 m).

LB-03 was collared within the mineralized quartzbarite- sulphide breccia, and continued in this until 13.30 m. This section assayed 8.32 g/t gold over 13.30m (0.00 to 13.30 m), including 17 g/t gold over 4.1 m (2.20 to 6.30 m). The hole continued on into non-siliceous hydrothermal breccia, and strongly- altered andesitic volcanics. LB-03 was drilled at right angles to interpreted dip; however, because it was collared in the mineralized breccia, the true width is actually greater than the 13.30 m of mineralization intersected.

LB-04 (from the same collar as LB-03, was drilled at minus 70 degrees grid east) encountered the mineralized quartz-barite-sulphide breccia from collar to 17.85 m. This section assayed 9.62 g/t gold over 17.35 m (0.5 to 18.85 m), including 23.56 g/t gold over 2.85 m (13.30 to 16.15 m). Non-siliceous hydrothermal breccia and altered andesite were encountered in the footwall. Because LB-04 was drilled slightly oblique to the dip of the mineralized breccia, the intercept of mineralization is exaggerated; but as in LB-03, the hole was collared in mineralization, so true width cannot be calculated in any event, but is believed to be in excess of 13.30 m.

LB-05 (drilled at the same collar as LB-03/04 at minus 70 degrees grid west) was designed to test orientation of the mineralized breccia zone and explore it down-dip. It encountered mineralized quartzbarite- sulphide breccia from 0.00 to 5.90 m, infaulted, altered andesite, gouge and hydrofractured andesite to 24.50 m. Quartz-barite-sulphide breccia was again intersected from 24.50 to 68.0 m, which is the footwall to the breccia zone. LB-05 then encountered altered andesite, with patchy silicification from 68.00 to 74.00 m . A zone of sulphidic siliceous breccia, with base-metal sulphides, was intersected from 74.00 to 84.00 m, and then footwall altered andesite from 84.00 to present depth of 94.00 m. Partial assay results have been received and include; 3.43 g/t gold from 0 to 5.95 m and 14.28 g/t gold over 13.75 m from 24.5 to 38.25 m (end of assays received; the mineralized quartz-barite-sulphide breccia continues to 68 m).

Assay results from 38.25 m to end of hole (in progress) will be reported when received.

Since LB-05 was drilled sub-parallel to dip of the mineralized breccia zone, the intercept does not relate to true width in any way, but illustrates continuity down-dip and gives information on the dip and nature of mineralization (see accompanying Schematic 3D Model). The mineralization within SWB is classical epithermal, gold-rich, low-sulphidation mineralization overprinted onto an earlier, copper-gold high sulphidation style. Porphyry copper-gold style of mineralization is envisaged beneath SWB.

Core recovery in the mineralized breccia is difficult, and is poor in places. In particular, there is strong core loss from the friable sulphide-rich matrix. It is thought that gold grade in the drill core may therefore be under-reported, and that this explains a major part of the grade discrepancy between Trench 2 and the underlying drill holes. Surface enrichment is not thought to be significant (fresh sulphide is common at surface). Ultimately it is likely a reverse circulation rig will be used at Lobo to provide more accurate grade data.

Mindoro management is highly encouraged by the initial drill results. A considerable amount of drilling will be required to define and evaluate the mineralization at SWB, which has been traced via mineralized breccia boulders for at least 600 m along strike. This forms just part of the overall Camo Trend that extends at least 2 km. Drill targets are also being developed on the adjacent Sampson Trend, as well as elsewhere at Lobo. However, in the near term, drilling will continue to focus on defining mineralization in SWB. It is planned to add a second drill rig to Lobo in the next few months.

Quality Control
The drill program is being carried out under the direct supervision of Tony Climie, P. Geol., who is a qualified person as defined by National Instrument 43-101. Drill core is transferred from drill rig to core boxes under supervision of Mindoro employees; the core boxes are security-strapped and transported to a secure core processing area, where core is logged and split by diamond saw under direct supervision of Mindoro geologists. Samples are transported in sealed bags to McPhar Geoservices of Manila (an ISO 9002 accredited laboratory) where samples are assayed using standard techniques. McPhar has a rigorous quality control system of internal checks and blanks. One out of twenty samples are being check assayed at Intertek Testing Services, Jakarta, Indonesia. Any significant discrepancies will be reported at a later date. Mindoro is a Tier One Company listed on the TSX Venture Exchange (symbol MIO). The Company is exploring for gold and gold-copper in the high-potential magmatic arcs of the Asia-Pacific Region and is presently focussed on six promising projects in the Philippines.

For further information, contact Penny Gould, Executive Vice President:
Phone: (1-780) 413-8187
Fax: (1-780) 426-2716

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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