Acquisition(s)

Medoro Resources Closes Acquisition of Venezuelan Gold Properties

    TORONTO, July 10 /CNW/ - Medoro Resources Ltd. (TSX-V: MRS/AIM:MRL)
announced today that it has completed the acquisition of all of the shares of
Panwest Seas Corporation Ltd., which holds the rights to the Lo Increible 4A &
4B gold exploration properties located in the El Callao area of the State of
Bolivar, Venezuela.
    As previously announced, in consideration for the acquisition of Panwest,
Medoro issued 15,140,000 common shares to the shareholders of Panwest, paid
US$1,000,000 in cash and also agreed to pay to the sellers a royalty of US$15
per ounce of gold on all production from the Lo Increible 4A & 4B mining
properties. Medoro has also assumed all of Panwest's current liabilities and
the expenses of the acquisition of the purchased shares and the closing of the
transactions, totaling less than US$200,000.
    The company is planning to commence a 15,000 metre diamond drilling
program at the La Cruz, La Sofia and El Tapon prospects by the end of July,
2006.

    Risk Factors:
    The company's exploration and development activities primarily occur in
Venezuela and, as such, the company may be affected by political or economic
instability in Venezuela. The risks include, but are not limited to, civil
unrest, terrorism, military repression, extreme fluctuations in currency
exchange rates and high rates of inflation. The security situation in
Venezuela over the past few years has been highly volatile due to political
conflict between the Venezuelan government and opposition groups. In 2004, a
national referendum ratified the mandate of the President of Venezuela and
later that year, elections of governors and mayors throughout the country
resulted in the ruling group of parties controlling most of such offices.
These events have resulted in greater political stability, which is expected
to last for some time. Also, oil revenues have remained high, which has
allowed the government to increase public spending. Violent crime is prevalent
throughout the country. Kidnapping, smuggling and drug trafficking occur
frequently in remote areas, including Bolivar state.
    Changes in resource development or investment policies or shifts in
political attitude in Venezuela may adversely affect the company's business.
Operations may be affected in varying degrees by government regulations with
respect to restrictions on production, price controls, export controls, income
taxes, expropriation of property, maintenance of claims, environmental
legislation, land use, small miners' activities, land claims of local people,
water use and mine safety. The effect of these factors cannot be accurately
predicted. In the past, Venezuela has imposed exchange controls that make it
difficult for foreign mining companies to repatriate profits. All foreign
currency derived from the export of products from Venezuela, including gold,
must be sold to the Central Bank at the fixed exchange rate at the time of the
transaction. Foreign investors have the right to apply to the Central Bank for
foreign currency at the fixed exchange rate for the purposes of repatriation
of capital, dividends and interest.
    The provisions of the Investment Protection Treaty with Canada, which was
ratified by Venezuela on January 20, 1998, should provide certain protections
to Canadian-based investors (like the company) in Venezuela.

    Medoro Resources is a gold exploration and development company focused on
acquiring properties of merit for potential joint ventures with senior
producers. The company has acquired a 100% interest in the Lo Increible 4A and
4B concessions in Venezuela. Further information is available on our website
at www.medororesources.com.

    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE


For further information: Robert Doyle, Executive Vice President, (416)
603-4653, rdoyle(at)medororesources.com
(MRL)