Fredonia Mining Inc. announced that it has received the remaining assays from the recently completed drilling programme at the Company's El Dorado Monserrat ("EDM") property, located in Santa Cruz, Argentina. As previously reported, 10 HQ diamond drill core holes were drilled at LH, with a further drill hole on the `Gladys' prospect, 4.5 km to the northwest. In total 11 holes were drilled for 2,482.80m.

The Fredonia technical team is now focussed on the interpretation of the drill sections and the assimilation of this information with the assays in order to plan a further drill programme targeting the potential high grade extensions. The Company anticipates drilling at LH will recommence in October. Preparations are already underway for this 2,500m follow- up drilling phase, which will also include further exploration drilling on other areas considered prospective targets on the EDM property.

Drill holes have intercepted hydrothermal breccias, veins and stockworks, hosted in a phreatomagmatic breccias, felsic domes and dykes that intrude the andesite flows which form the country rock. The geological model for the mineralisation being developed by the exploration team is constantly being refined as drilling and mapping information is integrated. The data continues to support the presence of a potential diatreme surrounded by an extensive brecciated host system, the dimensions of which are as yet undefined being geologically open in all directions.

The Fredonia geological team believe further drilling is warranted to define this model and extend the zone of known mineralisation. The final assay results for all the drill holes at LH are now available. The significant intersections are tabled below.

The drilling has added additional credibility that the potential for a large tonnage Au-Ag occurrence with included high grade zones exists at LH. The results to date further support and indicate the geological model of a low sulphidation epithermal Au-Ag mineralised system within an extensive lower grade breccia halo hosted in a predominantly andesitic, variably brecciated formation. The recent drilling continues to enhance the resource potential at LH and the assays have confirmed the presence of wide intersections of mineralised material with higher grade inclusions.

This is specifically evident in hole HDDH 40 with 7m @ 1.88g/t Au with an included 0.4m @ 26.4g/t Au. Gold mineralisation is related to a quartz + sericite alteration and minor bladed calcite and adularia, interpreted as evidence of a boiling zone in an epithermal system. The shallow and distal zones show a chlorite + hematite + pyrite alteration, while in the deeper sections there are veins of platy calcite + fluorite.

Superimposed on the system is an alteration halo of kaolinite + alunite and vuggy quartz, which occurs in shallow and medium-deep sectors. Drill hole (geological) interpretations are now underway and once completed the updated interpretations of the LH drill sections will assist in determining the hole by hole detail of the next phase of drilling at LH. The objective of the follow-up programme remains to advance LH towards a maiden resource estimate.

The drill programme was primarily to target the extensions, both down dip and along strike of the high grade intervals in drill holes HDDH013 and HDDH011 and their potential depth extensions. These historic drill holes are about 250m apart along a defined roughly west - east strike of the mineralised trend identified to date. The drill holes drilled further along strike to the east, including HDDH40, 41 and 43 have geologically and geochemically extended the mineralised trend by potentially 300m to the east and remains open.

Mineralisation is also identified to depths of >200m. The interpretation of the geological intersections in holes HDDH 41 and 43 and the low ratio of Ag:Au relative to the higher grades and ratios in HDDH40 may indicate that there is potential at depth. If this is conclusive, step-backs to HDDH41 and 43 are warranted as well as further deeper drilling to the east.

The IP survey conducted over the area last year also indicates deeper IP anomalies to the east of drill hole HDDH40. These vectors point to significant potential to the east and down plunge. Drilling the southwest area of LH, specifically holes DHHD39 and 44 has proved gold (and silver) mineralisation is both present and remains open in the southern LH block, an area which has not previously been targeted.

This mineralisation hosted in andesitic rock represents a new area for discovery. A single drill hole, GLDDH001, targeted the Gladys vein which outcrops over 1km located near the Abanico veins which are a southern continuation of the Main Veins. Gladys occupies a regional west northwest transtensional shear corridor.

A historical barite pit of 100m long and 8m wide, shows a dacitic dike intruding in andesites, related to hydrothermal breccias and veins, thickness up to 2.4m. Previous exploration included sawn channel samples, which were anomalous in gold and silver. GLDDH001 is the first drilling carried out in this corridor, and intercepted, from 86.0m, 4.0m@ 16.94g/t Ag, in a fault zone filled with gouge, clays and chalcedonic clasts with poor drill core recovery, gold values were generally low to below level of detection.