Guinor Achieves 2.0 Million Oz. Reserve Plus A 26% Increase in Resources

27 Jan, 2005, 19:38 GMT Fra Guinor Gold Corporation

LONDON, January 27 /PRNewswire/ -- Guinor Gold Corporation (GNR: TSX, OSE) is pleased to announce a proven and probable mineral reserve of 2.0 million ounces in and around its 85% owned LEFA gold deposits on the Dinguiraye Concession in Guinea, West Africa. The updated reserve is a significant increase from the 0.3 million ounces previously released on 31 December 2002, and represents a further key milestone in the proposed four fold expansion of gold output from the current operations. The new mineral reserve assumes the purchase of the Kelian plant from a subsidiary of Rio Tinto Plc which was previously announced on November 12, 2004. These reserves are based on drilling up until July 2004. Details of the new (and previous) reserves calculated on the Dinguiraye Concession are tabled in Figure 1 and are calculated as at December 9, 2004.

    
    Figure 1: Mineral Reserve Update, December 9, 2004 - (Guinor's
    attributable ounces are 85% of figures below)
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    Deposit             Proven              Probable          Total Reserve
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                  Tonnes      Million  Tonnes     Million  Tonnes     Million
                   (Mt)   g/t   ozs    (Mt)   g/t   ozs    (Mt)   g/t   ozs
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    Lero Karta      9.9   2.4   0.8     3.6   1.8   0.2    13.5   2.2   1.0
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    Fayalala        8.8   1.5   0.4     6.0   1.3   0.3    14.8   1.4   0.7
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    Others          0.3   2.5   0.0     7.6   1.3   0.3     7.9   1.4   0.3
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    Total          19.0   2.0   1.2    17.2   1.4   0.8    36.2   1.7   2.0
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    Prior Total(x)  1.9   3.3   0.2     1.8   2.5   0.1     3.7   2.9   0.3
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    (x) Calculated for heap leach operations on 31/12/02 and does not include
    subsequent mining dilution
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Measured and Indicated Resources Also Increase By 26%

In addition to the reserve increase, Guinor is also pleased to announce a 26% increase in mineral resources within the measured and indicated resource categories. Based on drilling carried out through to the end of December 2004, the measured and indicated mineral resources as at December 30, 2004 have risen to 3.4 million ounces (68.1 million tonnes @ 1.6 g/t) versus 2.8 million ounces or 56.5 million tones @ 1.5 g/t reported previously in March 2004. For further information on the reserve data, plus details on the updated resource, please refer to our website www.guinor.com

Ongoing Drilling is Expected to Further Increase Reserves

The resource increase is a direct result of the extensive drilling program between July and December 3, 2004. Given the increase in resources, we believe ongoing analysis should lead to a further increase in reserves within Q1 2005. The company has stated its intention to expand mining operations to approximately 6 million tonnes per annum, a level at which the current 2.0 million ounce reserve would sustain a mine life of 6 years. Any increase in reserves would obviously extend the life and enhance the economics of the project. Furthermore, this announcement furthers the goal of achieving the first production from a CIL plant at the Lero gold project in the third quarter 2006.

The mineral reserve and resource statement has been prepared under the supervision of Guinor's Qualified Person (Andrew Pardey) and verified by independent resource consultants RSG Global of Australia. The calculated mineral reserve utilized a gold price of US$400/oz. On January 26, 2005, the p.m. fixing of gold sold in the London Bullion Market was US$426/oz.

Mr. Trevor Schultz, the Chief Executive Officer and President of Guinor commented - 'With a substantial reserve now available coupled with the recent commitment to purchase the Kelian CIL plant, Guinor is pushing forward with many of the key elements to significantly grow both output, and shareholder value over the next 18 months. The announcement on the bankable feasibility study is likely in the current quarter and should further add to the excitement generated by the Lero gold project. The geological team has done a superb job in defining this reserve but with the significant upside in and around the LEFA corridor, plus the regional potential, we hope the 2.0 million ounce reserve represents just the beginning for this mine'.

Quality Assurance and Control and Qualified Person

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Data, of a scientific or technical nature, regarding mineral reserves and mineral resources of Guinor Gold Corporation and its subsidiaries included in this document has been prepared under the supervision of Mr. Andrew Pardey, the Chief Geologist. Mr. Pardey is a "qualified person" within the meaning of Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Mr. Pardey is not "independent" of Guinor Gold Corporation within the meaning of NI 43-101 as he holds securities of the company. All exploration work of the company is conducted under the supervision of Mr. Pardey. The mineral reserves and mineral resources statements included in this document have also been verified by RSG Global of Australia who are "independent" of the company within the meaning of NI 43-101.

Mineral reserves and mineral resources on the Dinguiraye Concession have been classified in accordance with the classifications adopted by the Canadian Institute of Mining, Metallurgy and Petroleum. All mineral resources and reserves have been calculated using the multiple indicator kriging, ordinary kriging technique or inverse distance methods. Proven and probable mineral reserves constitute a portion of, and are included in, the company's mineral resources.

All drilling is conducted using industry accepted equipment and procedures for drilling and sampling. All drill intercepts reported in this press release relate to either RC percussion (dry samples, 1m intervals, greater than 75% sample recovery) or NQ/HQ diamond drill core (half core samples, maximum 1m intervals, greater than 95% sample recovery) for resource definition drilling, all first pass regional exploration drilling is conducted using AC drilling, with follow up using RC. Historically sampling and assaying of wet RC samples has occurred, this data is flagged in the resource database. A program of confirmatory diamond drilling is ongoing to verify the reliability of this data.

All assay results reported have been determined by 50 gram fire assay, aqua regia digest and atomic absorption spectrometer readings to a detection limit of 0.01 g/t gold by independent assay contractors SGS Siguiri and Transworld Laboratories. As Transworld are not NATA registered, a rigorous ongoing check assay program with internationally recognized and certified umpire assay laboratories Genalysis (Perth, Australia) and ALS Chemex (Vancouver, Canada) is conducted to confirm reliability of assay data. The data is verified on an ongoing basis by Guinor's Qualified Person and independent resource consultants RSG Global of Australia.

Safe Harbour Statement

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Certain statements contained herein, as well as oral statements that may be made by the company or by officers, directors or employees of the company acting on the company's behalf, that are not statements of historical fact, may constitute "forward-looking statements" and are made pursuant to applicable and relevant national legislation (including the Safe-Harbour provisions of the United States Private Securities Litigation Reform Act of 1995) in countries where Guinor is conducting business and/or investor relations. Forward-looking statements, include, but are not limited to those with respect to the price of gold, the estimation of mineral reserves and resources, the realization of mineral reserves estimates, the timing and amount of estimated future success of exploration activities, Guinor's hedging practices, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risk, title disputes or claims limitations on insurance coverage and the timing and possible outcome of pending litigation. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "does not expect", "is expected", "budget ", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or equivalents or variations including negative variation, of such words and phrases, or state that certain actions, events or results, "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, possible variations in grade and ore densities or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes and other risks of the mining industry, delays in obtaining government approvals or financing or in completion of development or construction activities. Although Guinor Gold Corporation has attempted to identify important factors that could cause actual actions, events or cause actions events or results not to be anticipated, estimated or intended, there can be no assurance that forward looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Except as may be required by applicable law or stock exchange regulation, the company undertakes no obligation to update publicly or release any revisions to these forward- looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. Accordingly, readers should not place undue reliance on forward-looking statements.

KILDE Guinor Gold Corporation