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CHARIOT RESOURCES LIMITED

Email alexb@chariotresources.com Website www.chariotresources.com Trading Symbol (TSX-V:CHD) August 9, 2004 NEWS RELEASE CHARIOT ACQUIRES MARCONA COPPER PROJECT Chariot executes agreements to acquire Marcona Copper Project located in Peru; Inferred Resource of 218.3 million tonnes @ 0.80% Cu; IOCG deposit located 25km from deepwater port and adjacent to existing infrastructure Significant exploration upside over 32,899 ha; Potential to acquire adjacent additional resources; Planning for capital raising to fund acquisition and two year feasibility study The Board of Directors of Chariot Resources Limited (Chariot) is pleased to announce that on Friday, August 6, 2004 it formally executed sale and purchase agreements with Rio Tinto Mining & Exploration, Sucursal del Peru (Rio Tinto), a subsidiary of Rio Tinto PLC, and Shougang Hierro Peru S.A.A. (Shougang), to acquire a 100% undivided working interest in the Marcona Copper Project (Mina Justa) located in Peru. The acquisition will be made by Marcobre S.A.C (Marcobre), a Peruvian registered Chariot subsidiary, which has been specifically incorporated to develop and operate the Marcona Copper Project. The total purchase price will be between US$33.5 million and US$ 43.5 million as explained below. The total to be paid to Rio Tinto and Shougang at closing will be US$20.5 million and a further US$13.0 million will be paid on the second anniversary of the closing date. Both these payments are unconditional. Up to an additional US10.0 million will be payable at a later date when a decision to mine is made and if the then known resource is at that time larger that the inferred resource currently identified in the National Instrument 43-101 Report which is to be filed on SEDAR Inc. and with the Canadian Securities Administration within 30 days of filing this press release.

Acquisition Details The acquisition of the Marcona Copper Project involves two separate but simultaneous transactions. The closing date of the transactions is to be within 150 days of the signing of the sale and purchase agreements, which closing date must occur before 5 January 2006. The first transaction involves the acquisition from Shougang of a 100% undivided working interest in Target Area 1 (3,970ha) and from Rio Tinto of the assignment of the Option Agreement, between Rio Tinto and Shougang, whereby Rio Tinto has earned the right to acquire from Shougang a 57.5% interest in Target Area 1. To acquire these interests, Marcobre has agreed to pay Rio Tinto US$10,350,000 and Shougang US$7,650,000 upon closing and US$7,475,000 and US$5,525,000, respectively, on the second anniversary of the closing date. The second transaction involves the acquisition of 100% of Rio Tintos wholly-owned exploration property (24,540ha) which lies immediately to the north and east of Target Area 1. To acquire this exploration property, Marcobre has agreed to pay Rio Tinto US$2,500,000 upon closing. Conditional Payments to Rio Tinto and Shougang of US$1,725,000 and US$1,275,000, respectively, will be payable when a decision to mine is made at any point in time in the future and the then known resources of the Marcona Copper Project at such time demonstrate a contained metal content equal to or greater than 2.58 million tonnes of copper at a 0.3% Cu cut-off. An additional US$4,025,000 and US$2,975,000 will be payable to Rio Tinto and Shougang will also be payable at the same time in the event that the then known resources of the Marcona Copper Project at such time demonstrate a contained metal content equal to or greater than 3.44 million tonnes of copper at a 0.3% Cu cut-off. Technical Report Chariot has commissioned AMEC (Peru) S.A. to provide an independent Qualified Persons Review and Technical Report for the Marcona Copper Project. This report will be prepared in accordance with the requirements of the Standards of Disclosure of Mineral Projects as defined in National Instrument 43-101. The report will be filed, on SEDAR Inc. and with the TSX Venture Exchange within 30 days of the date of this press release. The following information has been taken from the report and has been reviewed and confirmed by Mr. Miron Berezowsky and Mr. Tracy Barnes of AMEC who are the authors and Qualified Persons of the aforementioned NI 43-101 Report. The Marcona Copper Project is located within the Nazca Province, Ica Department (Peru), in the southern Peruvian coastal belt, approximately 400km southeast of Lima. The Project consists of two adjacent areas referred to as Target Area 1 (Block TA1) and the Rio Tinto Claims, which together cover approximately 32,899 ha. The Mina Justa Prospect is the principal exploration target on the Project and occurs at elevations ranging from 785 masl to 810 masl.

The most detailed geological work on the Mina Justa Prospect was carried out by Rio Tinto between 2000 and 2003 and consists of airborne magnetic and radiometric surveys, geological mapping, geochemistry, geophysics, RC and diamond drilling, limited petrographic examinations and metallurgical testing. A portion of the airborne geophysical coverage was completed during earlier district scale reconnaissace exploration carried out in the mid-1990's. During the period 2001 to 2003, the Mina Justa prospect was explored by Rio Tinto with the drilling of 103 holes aggregating to 30,971.55 meters of reverse circulation and diamond drilling. The drilling identified two principal copper mineralized zones. The Main Zone has been intersected along its dip from surface over a 1,700 m distance, to a maximum depth of 500m, where it is still open. The Upper Zone has been intersected along its dip from surface over its 1,100m down-dip extension to a maximum depth of 250 m. The geometry of the Main Zone and Upper Zone is similar. Both structures appear to be curved flat-bowl-like features that have an overall east to southeast dip. Generally the upper 200 m of the zones is characterized by copper oxide mineralization with sulphides gradually becoming dominant at lower levels. The dominant oxide minerals are chrysocolla and atacamite. The sulphide assemblages have been reported to be concentrically zoned outward from bornite-chalcocite in the core through intermediate bornite, chalcopyrite to peripheral pyrite. The copper mineralization of the Marcona Project is related to the hydrothermal ironoxide copper gold (IOCG) ore deposit model. Examples of economically important IOGC deposits include Olympic Dam and Ernest Henry in Australia, Salobo and Sossego in Brazil, and Candelaria, Mantos Blancos, Manto Verde and El Soldado in Chile. Considering their large metal accumulation, often in the order of 250 million to 1.0 billion tons of 1% Cu and 0.5 g/t Au, the IOCG class of ore deposits is an attractive exploration target. The Marcona and Pampa de Pongo Iron deposits are located approximately seven km southwest and 30 km southeast respectively of the Mina Justa Deposit. Together, these are the largest iron ore accumulations (with associated copper and gold) along the western coast of South America. The two deposits, along with the Mina Justa Deposit form part of a cluster of similar occurrences that together define the Marcona Fe-Cu District.

AMEC was retained to review a block model, constructed by Rio Tinto in July 2003 on the Mina Justa Prospect. The estimate was made from 3-dimensional block models utilizing commercial mine planning software (Vulcan). Tracy Barnes, P.E. was the QP responsible for the review of the Rio Tinto resource model. As part of this work AMEC also undertook a program of data verification by re-sampling a portion of the existing core and RC rejects.

The estimate was completed using a block model with 50 m x 50 m x 10 m blocks and 5 m bench composites. Grade interpolation was done by Inverse Distance Squared and was compared with two other methods, Ordinary Kriging and nearest neighbour. AMEC found no significant or fatal flaws in the model and found that it was based on a spatially consistent geological interpretation and was constructed in a manner consistent with the data. Preliminary engineering evaluations have been completed on the open pit portion of the mineral resources by AMEC to demonstrate that it has reasonable prospects for economic extraction. The preliminary assessment is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized. Certain qualifications and assumptions have been made by Tracy Barnes, regarding this preliminary assessment, which are described in the Technical Report. The underground portion of the mineral resource was briefly reviewed by AMEC Senior Mining Engineer Bill Tilley P.E. to determine if reasonable prospects for economic extraction could be demonstrated. AMEC re-classified the Rio Tinto block model, taking into account the above points (see Table 1). The resource estimate is presented as % Total Cu, since the previous sampling campaigns included very few assays for soluble copper. A program of re-sampling of the previous drill hole sample pulps will be completed during the next phase of exploration to determine the amount of soluble copper in the oxide portion of the deposit. In addition all future analyses in the oxide portion of the deposit will include sequential copper analyses. The total (oxide, mixed and sulphide) mineralization of the Mina Justa Prospect as of June 18, 2004, is classified as Inferred Mineral Resources, consistent with the CIM definitions referred to in NI 43-101 and are shown on Table 1.
Table 1 Mina Justa Prospect Inferred Mineral Resources (T. Barnes, June 18, 2004)
Mineralization Cutoff (%CuT) Type Open Pit Resources Leach Processing Resource Summary ROM 0.15 0.30* Crushed Oxide 0.30 0.50 0.50 1.00 1.00 2.00 +2.00 Total Tonnes Cu% Au (g/t) --------------------Ag (g/t) ---------------------

67,800,000 40,200,000 42,000,000 8,800,000 500,000 91,500,000 1,100,000 5,400,000 5,900,000 12,500,000

0.20 0.39 0.73 1.29 2.25 0.64 0.92 1.56 3.61 2.47

Sulphide Leach

0.31 0.50 0.50 1.00 1.00 2.00 +2.00 Total Mill Processing Resource Summary

Mixed

0.40 0.50 0.50 1.00 1.00 2.00 +2.00 Total

200,000 600,000 600,000 200,000 1,600,000 900,000 3,900,000 4,800,000 3,600,000 13,200,000 186,600,000 31,700,000 3,900,000 31,700,000 218,300,000

0.47 0.67 1.42 3.01 1.22 0.44 0.75 1.44 3.31 1.68 0.68 1.51 2.60 1.51 0.80

0.022 0.019 0.016 0.097 0.029 0.013 0.027 0.060 0.110 0.061 -----------

3.34 7.03 14.85 19.88 11.00 3.32 8.74 15.46 18.94 13.56 -----------

Sulphide

0.36 0.50 0.50 1.00 1.00 2.00 +2.00 Total Total Open Pit Resources Underground Resources Mill Processing Resource Summary Sulphide 1% Cu Grade Shell 2% Cu Grade Shell Total Underground Resources TOTAL INFERRED MINERAL RESOURCES

Note*: It is possible that approximately 40% of the ROM mineralization could be declared as waste due to its potential high acid consumption. This material still remains poorly defined and with further work may be more or less than 40%.

The Inferred Mineral Resource presently defined consists of potentially open pit and underground minable tonnages. In addition significant potential exists to expand the current resources to the north, to the south on to an adjacent property, and to the west. An in-house preliminary economic assessment by Chariot was completed on the potentially open pit minable portion of the Mina Justa mineralization. The study was based on an Inferred Mineral Resource base of 159.5 million tones @ 0.76% copper. A total of 40% of the ROM mineralization has been removed from the open pit Inferred Mineral Resources shown in Table 1 for this study due to its potential to be high acid consuming. The underground resources were not incorporated into the economic study. The economic assessment is preliminary in nature and includes the use of Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves. Therefore, there is no certainty that the preliminary assessment will be realized. This Technical Report and the Preliminary Assessment also speculates on the impact of exploration success on the project economics. The purpose of this preliminary assessment was intended purely to provide Chariot Resources with direction for future exploration. The assumptions used in the study are: Copper price: US$ 0.90 per pound Metallurgical recoveries (CuT basis): oxide 75.4%, sulphide leach 67.5%, run of mine 58.1%, sulphide mill 93% Capital cost (leach operation): US$ 186 million Capital Cost (milling operation): US$ 62 million Average Mining costs: US$ 0.94/ tonne moved Average G&A costs: US$ 0.39/tonne Mine Life: 13 years

Average mining rate: 30,000 tonnes/day Average strip ratio: 2.3:1

Notes: 1- An assumed 1.5% NSR to the Peruvian Government and an assumed 1.5% to 2% South American cathode premium were included in the study 2- The metallurgical recoveries are assumed and based on limited metallurgical testwork

Based on these assumptions Chariot has calculated Net Present Value for the combined leach-milling operation (pre-tax) of US$ 91 million (at an 8% discount rate) to US$ 52 million (at a 10% discount rate). The Internal Rate of Return (IRR) is 14%. Over the life of the mine the Mina Justa Prospect produces approximately 2.2 billion pounds of copper at a weighted average cash operating cost of approximately US$ 0.52 per pound of copper. These values are for the Marcona Project as a whole and do not take into account the proposed ownership changes as noted below under Joint Venture. The preliminary evaluation completed on the Mina Justa Prospect appears to support a reasonable expectation that the open pit resources could be mined and copper profitably produced. Director of Exploration for Chariot Bob Baxter commented that Chariot has recently conducted an extensive review of the existing exploration data on the resource areas and surrounding regional targets. This has resulted in the establishment of a comprehensive exploration model which will form the basis of the drilling program under the Feasibility Study. The Board is extremely confident that significant additional mineable resources will be identified as part of the exploration and resource drilling programs, scheduled to commence early in 2005.

Financing Discussions with several major financial institutions in Canada are well advanced with respect to a significant equity capital raising. Funds will be directed to Chariots share of the acquisition costs and to conduct a two year bankable feasibility study into developing the above referred to Marcona Copper Project into commercial production. Joint Venture Chariot previously announced on June 11, 2004 that it had reached agreement in principle with Korea Resources Corporation and LG Nikko Copper Inc (collectively the Korean Joint Venture) to form a Joint Venture to participate in the acquisition and development of the Marcona Copper Project. Under the agreement Chariot and the Korean Joint Venture will hold respectively 70% and 30% contributing interests in the Marcona project through their respective interests in of the equity of Marcobre S.A.C which has been incorporated in Peru to hold a 100% undivided working interest in the Marcona Copper Project. The Korean Joint Venture will also have the right, during the first 10 years of production, to purchase up to 70% of the production of copper cathodes and up to 90% of the annual production of copper concentrates produced by Marcobre under formal Off-Take Agreements which will be based on arms-length internationally accepted terms commercial terms. The terms of the Joint Venture Agreement and the Off-Take Agreements are expected to be finalized during the next few weeks. Alex Black, Chariots President and CEO, congratulated the management team and advisers involved on their excellent efforts with this significant acquisition. The Marcona Copper Project stands out as one of the best undeveloped copper projects in South America, with outstanding development parameters due primarily to its location 25km from a deep sea port, low altitude (800m elevation), proximity to infrastructure, water and power associated with the nearby Marcona iron ore mine. Managements assessment of the development case has identified no fatal flaws from environmental and community perspectives. Capital expenditure is estimated to be modest in comparison with similar projects and the project has excellent upside potential to increase existing resources. In summary, the acquisition of the Marcona Copper Project will significantly change the nature of the company and raise it into the ranks of the mid-tier copper producers. In a climate of continuing high world demand for copper and attractive prices, the Company is well placed to capitalize with this acquisition of a potential development project that early stage economic studies indicate attractive returns at a low copper price.

ON BEHALF OF THE BOARD OF DIRECTORS OF CHARIOT RESOURCES LIMITED.

Alex Black
President

CHARIOT RESOURCES LIMITED, listed on the TSX Venture Exchange is engaged in mineral exploration and development in the Andean region of South America. Additional detail about the Companys projects can be viewed on the Companys website at www.chariotresources.com Lima, Peru Office Jiron Crane 102, Piso 5 Urb. Jacaranda, San Borja Lima, Peru Bob Baxter: Cel Phone: Email: Alex Black: Cel Phone: Email: Tel: Fax: 51-1-436-9127 51-1-436-9129

51-1-9790 3000 bobb@chariotresources.com 51-1-9790 9000 alexb@chariotresources.com 416-270-4481 rath4481@rogers.com

Toronto Representative Office Ulli Rath: Cel phone: Email: Vancouver Office c/- Chase Management Suite 1305, 1090 West Georgia Street Vancouver V6E 3V7. Perth Representative Office John Hannaford: Cell phone: Email:

Tel: 604 685 9316 Fax: 604 683 1585

61 419 042 769 john@mooney.net.au

Forward-Looking Statements: Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the corporation's periodic filings with Canadian Securities Regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The company does not assume the obligation to update any forward-looking statement.