Canadian International Minerals Inc. (CIN: CNQ)( http://www.cdnintlminerals.com) has entered into an option agreement to purchase 100 per cent of the Deadhorse Creek (DHC Property) rare earth element (REE) property. The DHC Property consists of 52 units in Walsh Township in the Thunder Bay mining division, is approximately 25 kilometres northwest of Marathon, Ont., and is traversed by Provincial Highway 17. The DHC property is underlain by Archean metasedimentary rocks that have been intruded by the Neohelikian Deadhorse Creek volcaniclastic breccia. Within these formations are a "granitic main mineralized zone" (GMMZ) and an associated "hydrothermal alteration zone" (HAZ) together with a "dolomitic carbothermal dike" (DCD). These geological formations all host various degrees of rare earth elements (REE) and associated minerals including other valuable metals including yttrium, zirconium, beryllium, niobium and uranium.

The GMMZ consists principally of a primary granitic assemblage of quartz, albite, potassium feldspar together with accessory or trace calcite, zircon, phenacite, magnetite, hematite, rutile, monazite-(Cerium), xenotime-(Yttrium), fluorite, thorite, uraninite, thortveitite and barylite. The DCD consists principally of dolomite-ankerite and calcite with minor zircon, xenotime-(Yttrium), thorite, monazite-(Cerium) and pyrite. Calcite is the principal host to the heavy REE-rich accessory mineralization. REE-hosting minerals at the DHC Property are xenotime and monazite, phosphate minerals with favourable chemical characteristics for economic REE extraction. In particular interest are the heavy REE`s erbium, gadolinium, dysprosium and ytterbium which have been identified in the xenotimes. The previous exploration programs did not establish a genetic model for the mineralization as it was not recognized that the mineralization was essentially A-type granitic in character.

The DHC Property has been intermittently evaluated (Gulf Minerals, Highwood Resources, Unocal Canada), with respect to its Yttrium, Beryllium and REE potential since its discovery in 1977. None of this work has led to complete geological delineation of the prospect at depth or along strike, as neither a comprehensive diamond-drilling program nor a regional radiometric survey was undertaken. A non-NI 43-101 compliant mineral inventory report on the GMMZ was filed by Unocal Canada (Moly Corp.) in 1987 with the Ontario Ministry of Mines; however, this had been delineated only by surface trenching and a small drill program. The limited work to date on the DHC property indicates potential for a deposit of substantial size and economic tenor of heavy REEs and associated metals that will not require caustic cracking. The terms of the agreement are as follows:

(a) Pay to the Vendors the sum of $250,000 as follows:

(i)   $50,000 on signing

      (ii)  $50,000 on the first year anniversary

      (iii) $50,000 on the second year anniversary

      (iv)  $50,000 on the third year anniversary

      (v)   $50,000 on the fourth year anniversary;

(b) Issue to the Vendors the aggregate of 600,000 common shares

(i)   300,000 of the Shares within five (5) days of the filing of the

             property acquisition;

      (ii)  300,000 of the Shares on the first year anniversary of the

              agreement;

(c) Incur exploration expenditures on the DHC Property of a total

(i)   $100,000 in the first year of this agreement;

      (ii)  $150,000 in the second year of this agreement; and

      (iii) $300,000 in the third year of this agreement;

      (iv)  $300,000 in the fourth year of this agreement;

      (v)   $300,000 in the fifth year of this agreement; and

(d) Pay to the vendors $24,000 annually as pre-production royalty payments until a 100 per cent interest in the property is earned and deducted against NSR Proceeds.

Upon the commencement of commercial production, CIN will pay to the vendors a 3 per cent NSR. CIN may elect to purchase 1.5 per cent for $1.5-million. A finder's fee worth 10 per cent of the cash payments and share issuances over the life of the agreement in common shares is payable to Zimtu Capital Corp. CIN will issue 100,000 shares to Zimtu to satisfy the first year of the finder's fee agreement. CIN has also acquired 100 per cent interest in the Excelsior claims in north western Yukon for staking and one-time vendor costs. Technical mineralogical descriptions and information in this release on the DHC property were from personal communications with Dr. R. H. Mitchell DSc PhD FRSC, consulting petrologist. The qualified person who has reviewed the technical data for this news release is Thomas Hasek P Eng.