Desert Sun Mining Corp. (Toronto:DSM / Amex:DEZ) Follow-Up No 4 / May 18, 2005

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CLOSE TO 4 MILLION OUNCES OF GOLD IN NORTHEASTERN BRAZIL

Business Summary

DESERT SUN MINING is an emerging gold mining company focused on the re-development of the 100%-owned Jacobina Mine and exploration of their 155 kilometer-long Bahia Gold Belt property in the state of Bahia, Brazil. Gold at Jacobina is hosted in quartz pebble conglomerates similar to those at Tarkwa, Ghana and Witwatersrand, South Africa. Desert Sun is unique among its peers in that it offers near-term production, a plan to grow resources and reserves organically and tremendous blue-sky exploration potential along the length of the Bahia Gold Belt.

The property, located just 17 km from the town of Jacobina, 330 km northwest of Salvador, the capital of Bahia, has had over USD 110 million previously invested in its development and contains a 1.5 million ton per year processing plant. The property produced approximately 700,000 ounces of gold from 1983-1998. The mine was closed and placed under care and maintenance in 1998 due to low gold prices.

Desert Sun is presently reactivating the Jacobina Mine based on a feasibility study completed in 2003 and expects to reach full production in the second quarter of 2005 at a rate of 100,000 ounces per year at a cash cost of less than USD 200 per ounce.

As a result of a very successful exploration program in 2004, Measured and Indicated mineral resources for all zones at Jacobina now total 24,800,000 tons grading 2.53 g Au/t containing 2,050,000 ounces of gold. This is a significant increase of 690,000 ounces of gold compared to the August 2003 Measured and Indicated resource. Inferred mineral resources in all zones now total 22,200,000 tons grading 2.61 g Au/t containing 1,900,000 ounces of gold. All of the mineral resource is contained in less than 10% of the 155 km long property.

In January 2005, Desert Sun announced positive diamond drill results at Pindobaçu located 50 km north of Jacobina including 5.46 g Au/t over a true width of 21.9m. The gold mineralization here occurs in a very extensive mineralized structure that probably extends for at least 15 km along strike with an associated alteration zone up to 100m wide. The mineralogy and geochemistry of this system is remarkably similar to the gold mineralization in the quartz pebble conglomerates in the Jacobina mine area to the south.

Desert Sun has begun a major USD 5 million exploration program planned for 2005, which includes at least 25,000 meters of diamond drilling. This program will focus on further exploring and developing major targets in the Jacobina mine area as well as significantly expanding the exploration work in the northern area of the Bahia Gold Belt, especially at Pindobaçu.

Bahia Gold Belt

The company's work to date has also generated a substantial increase in the number of known mineralized zones, both along strike from the original mining area at Jacobina, and in other parallel areas within the geological belt. DSM is now mapping and sampling the numerous workings of local miners, known as garimpos, (358 at last count) which trace the favorable horizons for up to 100 kilometers along the zones that are being collectively termed the Bahia Gold Belt.

Satellite imagery and preliminary geological maps prepared by the Companhia Bahiana de Pesquisa Mineral (CBPM) indicate that the area is underlain by the northern extension of the Jacobina Group that also lies below the Jacobina property to the south. High resolution magnetic and radiometric airborne geophysical data purchased from CBPM was reprocessed and used to aid in delineation of target areas. This information suggests that the Serra do Corrégo Formation may extend further north than previously thought.

The emerging geological picture is one of extensive and repetitive sequences of wide horizons of steeply dipping sedimentary rocks hosting low-grade gold mineralization of sedimentary origin. However, DSM is recognizing that within these beds are high-grade zones that are related to structural features such as shearing and faulting, as well as younger ultramafic intrusives. The gold in these zones shows characteristics of a hydrothermal origin, suggesting that there was a secondary influx, or remobilization, of gold along major zones through the rocks. This zone of hydrothermal overprinting extends for over 100 kilometers.

The Jacobina Gold Mine: OVERVIEW

SNC Lavalin completed a Feasibility study for Desert Sun (see press release September 12, 2003) which confirmed the economics of bringing the Jacobina Mine, on the Bahia Gold Belt in Brazil, back into production and outlined a mineral reserve of 10,746,000 tons grading 2.20 g Au/t containing 758,600 ounces of gold. SRK Consulting extended the SNC Lavalin Feasibility Study mine plan (2004 to 2011) an additional 11 years to early 2023 by scheduling the potentially "mineable tons" resulting from the conversion of inferred resources based on historical data.

SRK considered that Jacobina has the potential to deliver "economically mineable tons" containing 2 million recoverable ounces of gold. A key objective of the expanded exploration program is to upgrade the presently inferred mineral resources to the indicated category to realize these potentially recoverable ounces. It must be cautioned that the SRK study is not adequate to definitely confirm the economics of the inferred mineral resources and that there is no guarantee that further drilling will upgrade the inferred resources.

Based on the SNC Lavalin Feasibility, which used a gold price of USD 350 per ounce and a Real (Brazilian currency) to USD exchange rate of 3:1, the mine can be in production by sometime this year (2005), producing at a rate of 102,000 ounces of gold per year at an average cash cost of USD 189 per ounce.

Exploration

DSM carrying out a significantly expanded exploration program in 2004. The program had three major objectives:

• Upgrade present inferred mineral resources to indicated mineral resources in mine areas (Jacobina Mine, Morro do Vento Extension (Basal Reef) and Canavieiras);
• Define additional inferred mineral resources down-dip and along strike of known resources in mine areas;
• Expand drilling on targets outlined in Phase I program especially the potential open pittable zone at Morro do Vento. To date approximately 28,000 meters of drilling have been completed with results of this program regularly released as they become available. In addition, DSM is carrying out an expanded program to assess the potential of the Bahia Gold Belt which extends for 155 km.

Recent News: Desert Sun Intersects Two High-Grade Zones-8.40 g Au/t over 15.2 m and 9.29 g Au/t over 6.4 m-at Canavieiras Near the Jacobina Mine

DESERT SUN MINING CORP has received additional underground diamond drill results from the Canavieiras area at Jacobina, Brazil. The drilling is being carried out to test three major target areas: conglomerate reefs located between 50-100 meters below the existing mine workings; extensions of the reefs that were previously mined; and reefs above the mine workings. Significant results are listed in Table 1 and the target areas are shown in Figure 1.

The former Canavieiras mine is located 3 km north of the processing plant and is located in a block bounded by faults that is approximately 1.2 km long and 400 meters wide. In 2005 to date, 12 holes totaling 1,516 meters have been completed to test reefs below the old workings and 12 holes totaling 471 meters have been completed to test extensions of previously mined reefs. Results have been received from two (2) and nine (9) of the holes drilled in each of these target areas, respectively.

Currently one surface drill rig and two underground rigs are operating at Canavieiras.

Highlights of results include: Target Reefs below old workings - CAN-79 intersected mineralized zones. The MU (Middle Unit) zone grading at 8.40 grams gold per ton (7.84 g Au/t with highs cut to 30 g Au/t) over 15.2 meters and the LU (Lower Unit) zone grading at 9.29 g Au/t (7.75 g Au/t with highs cut to 30 g Au/t) over 6.4 meters. This surface hole intersected the reefs about 37m west and 22m north of CAN-13 drilled in 1997 which intersected 7.0 g Au/t over a true width of 24.0m; - CAN-71 intersected 1.70 g Au/t over a true width of 6.8m and 2.41 g Au/t over 4.4m. This hole is 55 m south of CAN-79 near the southern limit of the target reefs below the old workings. Target Reefs extending zones previously mined

- CAN-71 intersected 4.49 g Au/t over 3.0m true width;

- CAN-62 intersected 3.35 g Au/t over 7.0m true width;

- CAN-67 intersected 7.62 g Au/t over 1.1m true width; and

- CAN-61 intersected 4.72 g Au/t over 1.2m true width.

"The drill results at Canavieiras, especially in the targets reefs below the old workings, continue to be very positive," stated Dr. Bill Pearson, P.Geo., Vice President, Exploration. "The 2004 and recent drilling along with a re-interpretation of the geology by Chief Geologist Anselmo Rubio indicate that the distribution of the high grade gold mineralization in the target reefs both below and above the old workings is very similar to the distribution of gold ore in the reefs previously mined. Once the underground development heading that is being extended to allow enhanced drill access to the south is complete, we will be able to test if this trend of high grade mineralization continues to the south where the zones are completely open and there was very little previous drilling."

Peter Tagliamonte, Vice President, Operations and Chief Operating Officer added, "The continued positive results from the drilling program and the additional drilling planned will allow our mining team to better evaluate Canavieiras. It is also important to note that Canavieiras was not considered in our mining feasibility and we will be evaluating the exploration results carefully as this could potentially be a new mining area for Desert Sun."

Fundamental Considerations: HIGHLIGHTS

• First gold pour in March 2005
• Reserves increased to almost 1 million oz
• First feed to plant in January 2005
• Final permits July 2004

Exploration Highlights

• USD 5 million program in 2005
• Four more target areas along the 155 km long Bahia Gold Belt

Technical Considerations

The long-term chart provides an excellent view over the solid up-trend of the gold price. The price target of $ 500 or higher over the next six months seems to be attainable.

"The share price had a tremendous run in 2004 from the 50-cent level to the high of $ 2.24 of 350%. After the lengthy consolidation and as production start-up approaches, we believe that the share price could soon start moving again.", we wrote in November and indeed, the share price reached $ 2.50 by April 2005.

Now that the share price has fallen back to the $ 1.50 level, we believe it is timely to buy again.

Peter Zihlmann


www.pzim.com

[email protected]

[email protected]

May 18, 2005

Disclosure: The author has not been paid to write this article, nor has he received any other inducement to do so. The author is a shareholder in the company and will benefit from any increase in the company's share price. Disclaimer: The author's objective in writing this article is to invoke an interest on the part of potential investors in this stock to the point where they are encouraged to conduct their own further diligent research. Neither the information, nor the opinions expressed should be construed as a solicitation to buy or sell this stock. Investors are recommended to obtain the advice of a qualified investment advisor before entering into any transactions in the stock.