EXCALIBUR CONFIRMS ZONES OF HIGH GRADE

) (“Excalibur” or the “Company”) is pleased to provide

an update on the sampling program at the Catanava property in Pinos, Zacatecas, Mexico.

Pinos has been mined since 1546 and was one of only three bonanza gold districts discovered

by the Spanish in Mexico. It is located in the historic Fresnillo – Guanajuato Trend of Mexico,

characterized by world-class precious metals mines. The program includes mapping and

sampling of old mines and workings, surface mapping and sampling and re-logging of drill holes

completed by previous operators. The program is directed at expanding the resources at the

Catanava property and providing data for mine planning.

Exploration at the past producing El Camino Mine has expanded the known high grade gold

veins there. Additionally, surface and underground exploration at the El Camino and San Gil

veins has lead to the discovery of new high grade silver and gold mineralization, while

underground exploration at the San Miguelito area has confirmed the presence of high grade

gold mineralization.

Gold – silver mineralization occurs as veins and breccias related to a low sulphidation

epithermal system. This bonanza style mineralization appears to occur as quartz veins and

breccias. Several mineralized structures such as horsetails, cymoid loops, etc., are evident on

the property, and include epithermal quartz textures (Ginguro, blade, crustiform veins, etc.). The

mineralized zone may be controlled by a sigmoidal fault that cuts the capping limestones and

shales.

Sampling in the old mine workings returned sample intervals up to 13.2

grams/tonne (g/t) gold and 28.2 g/t silver over 0.5 metres and 6.7 g/t gold and 47.8 g/t silver

over 0.66 metres.

The sampling program intercepted high grade gold mineralization about 5 to 10 metres below

surface. The Company´s geologist infers the zone could continue 150 metres in a northerly

direction, where the vein was intercepted recently by Ramp-02 of the San Miguelito Mine and

160 metres north, where an anomaly of over 1 g/t Au was detected at surface.

The zone is best illustrated by samples 31501 to 31507 that were taken across the strike of the

two parallel veins. These samples cover a vein-block of approximately 35 metres, close to the

vein´s surface expression. Continuous vein-channel sampling yielded values ranging up to 13.2

g/t gold. The most particular feature of this vein is the change of azimuth and dip, which appears

The sampling program detected high grade gold mineralization at Levels

01 and 02 of the past producing San Miguelito Mine at 10 to 25 metres below surface. The San

Miguelito Vein belongs to the Cinco Estrellas – Tanous vein system, a major mineralized trend

that extends over a 5 km distance at Pinos. At the Catanava property it has a length of 700

metres and is composed of several sub-parallel gold quartz veins with historic mines, pits and

workings.

The zone is best illustrated in the middle portion of the workings, where values up to 0.97 m @

7.69 g/t Au and 32.6 g/t Ag were obtained. This mineralized ore shoot may correlate with both

levels of San Miguelito Mine and subsurface. The Company has an underground development

program at the San Miguelito Mine, and at this time, Ramp-02 is advancing towards the San

Miguelito Vein.

Surface vein-channel samples outlined high grade silver mineralization,

including silver values up to 457 g/t silver and 1.23 g/t Au over 0.8 metres. Silver mineralization

occurs as disseminated sulphides in quartz veins. At San Gil, the ongoing mine development

has advanced by 40 metres, confirming the lateral continuity of the mineralized vein.

Core from drill holes left by previous operators have been re-examined and re-logged and new

zones of silicification and alterations related to mineralized systems were found. The old

excavations of the Tanous and San Miguel mines were completely mapped and sampled and

assay results are pending.

Tim Gallagher, CEO of Excalibur, stated:

“The systematic sampling information combined with

the results from the underground development will provide guidance for mine planning. We are

, P.Geo. is a "Qualified Person" for the purpose of National Instrument 43-101, and has

reviewed and verified the technical contents of this news release.