Amazon Commences Exploration at Madeira Gold Project and Elects to Discontinue Exploration at Tocantins Gold Project

Friday, July 25, 2008 9:59 AM

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TORONTO, July 25 /CNW Telbec/ - Amazon Mining Holding plc ("Amazon" or the "Company") (AMZ: TSX-V) reports that it has elected to discontinue exploration at the Tocantins Gold Project ("Tocantins") located in Tocantins state and that exploration has commenced at the Madeira Gold Project ("Madeira") located in the Amazonas Province, Brazil.

Amazon's Board of Directors has determined that recent exploration results do not indicate that Tocantins is likely to host a gold resource of the size initially targeted. Amazon has notified the underlying owners and has also ended property payments.

In line with the Company's exploration strategy, Amazon has commenced exploration at the 100% owned Madeira gold project. The Company is outlining drill targets for a Phase 1 drilling campaign planned to start during Q3-2008.

It is the Company's view that Madeira makes an attractive opportunity for the Company for the following reasons:

- Amazon staked the claim;
- It is 100% controlled by Amazon;
- Potential near surface gold-rich conglomerates ("Targets"), can be
  easily drilled via RAB drilling;
- The property is in a historic gold producing region: Gold-rich
  conglomerates exposed by the Madeira River officially produced
  1.7 million ounces between 1975 and 1995.
- In such a geological setting and presuming drilling is successful, gold
  could be recovered using gravity techniques utilizing scalable, low
  cost operations that could be constructed in a relatively short period
  of time.

The Company's focus remains on exploration of major geological structures in regions of significant past gold production. The strategy involves low cost entry into prospective gold properties where mineral potential can be quickly assessed. An important aspect of this strategy is to cease exploration investment and property payments if exploration results fail to delineate a structure that appears capable of hosting a significant economic resource. This allows Amazon to re-allocate its cash resources towards new prospective projects. Amazon believes this prudent strategy to be the best use of its treasury whilst at the same time providing attractive opportunity for value creation.

About Amazon

Amazon is listed on the TSX Venture Exchange and is a mineral exploration company engaged in acquiring and developing gold exploration properties in Brazil.

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