Magnus Resources Huidong property Dingjiaping target area continues to show encouraging alterations and mineralization.

Magnus had drilled 1207 metres and completed two holes and has a further hole in progess. Meanwhile at the Huidong East property, the company has drilled 765.5 metres, completing 2 holes and has a further two in progress.

Drilling in the Dingjiaping target area is being completed using a Longyear LF-90 drill rig. This rig is still performing well averaging some 35-40 metres per day.

Gold is clearly present in very significant concentrations in rocks exposed by the road-building program at the Dingjiaping site. The identified high-gold locations are being included in the next hole of the current drill program. Magnus' management is extremely encouraged by these high gold grades at surface.

Rock analysis results from sampling of road cuts at Dingjiaping have returned highly encouraging concentrations of gold in rocks including 0.4 metres @ 19.5 grams per tonne gold; 1.3 metres at 10.2 grams per tonne gold; 1.7 metres @ 8.81 grams per tonne gold; 1.4 metres @ 7.94 grams per tonne gold; 1 metre @ 2.73 grams per tonne gold; 1 metre @ 2.63 grams per tonne gold and 1.2 metres @ 1.38 grams per tonne gold.

Drilling at the Dingjiaping target area began on July 25, 2006 .

A number of drill targets are set for testing at Dingjiaping. Targets are based on careful geologic mapping, proximity to known gold-bearing artisan tunnels, very strong surface soil gold geochemistry in this target area, and high concentrations of gold in rock samples.

In general, a series of north-south and east-west fault zones and shear zones traverse the Dingjiaping area. Sites where these two sets of mineralized structural zones intersect are met by other mapped faults and shears are considered especially favourable for large gold deposit systems and will be tested in the planned drilling program.

The current drill hole DJP-3-06 is at 410 metres within a grey to black carbonaceous phyllite. Numerous structures and quartz and carbonate veining and stockwork host good sulfide mineralisation, with sulfides visually observed to be as high as 10%. Sulphide mineralization occurs over a thick interval of several hundred metres so far, from 138 metres to 410 metres depth.

Magnus' exploration team is highly encouraged by the observed alteration and mineralization in Hole DJP-3-06. This observed alteration and mineralization in Hole DJP-3-06 is typical of the rocks comprising gold ore at Southwestern's Boka project, located south of Huidong along the same geologic trend.

Magnus's management cautions investors that while these initial visual results are encouraging, the company is awaiting gold assay results from the analytical laboratory to determine the gold content.

Planning for the next holes in Dingjiaping is proceeding with access now ready for drilling targets DJP-6, 7 and 9.

Core sampling is now up-to-date with the drilling program, and drill core is being sent to the SGS laboratory on an ongoing basis. Magnus expects to obtain results from its initial 10-hole Dingjiaping drilling program from this month til November.

Magnus's m anagement believes the program will lead to an improved understanding of the mineralized systems already observed at Huidong and could lead to a discovery in this favorable exploration terrain.