Dynasty Advances Its Zaruma Gold Project

Dynasty Advances Its Zaruma Gold Project

July 7th, 2004

Vancouver, BC, July 7, 2004 - Dynasty Metals & Mining Inc. (TSXV:DMM; the “Company”) is pleased to announce more encouraging results from recent rock channel sampling conducted at two old mine sites situated within the Company’s 100% owned Zaruma Gold Project, and the signing of a cooperative agreement with the national, provincial and local chambers of mines to work together to develop the region.

The Company has identified 5 vein targets at the old Sucre and Pacayurco mines, which are located 12 kilometres north west and 1 kilometre north east, respectively, from the town of Zaruma. Rock channel samples from these veins produced high-grade assays ranging in value from 0.01 grams/tonne (“g/t”) to 99.57 g/t gold and from 0.8 g/t to 278.7g/t silver. Sample widths varied from 0.2 to 1.5 metres.

President and CEO Robert Washer comments: “These latest results confirm our expectation that significant gold and silver mineralization exists within the trend we previously identified that includes the historical mining area of Portovelo-Zaruma.”

Mr. Washer further comments: “The agreement with the chambers of mines is significant to the future development of the region. It is intended to promote cooperation amongst local government agencies, concession holders and other interested parties.”

Geology

The geology of Zaruma consists of a 15 km x 5 km base metal-rich, gold-silver vein system that lies adjacent to a cluster of porphyry intrusions. The vein trend strikes north-northwest and consists of over 90 kilometres of veins.

Twenty seven gold-silver veins hosted in lithologies ranging from andesites to basaltic andesites have been identified by the Company. Four large under-explored target areas (Sucre, Pacayurco, Tamayo and Tablon) have been selected for the next phase of exploration, which will determine any down-plunge and strike extensions to existing bonanza pay shoots.

Sucre

At Sucre, the vein has been historically mined for a length of 250 metres, with widths varying from 0.2 to 2.1 metres and to an approximate vertical depth of 50 metres. Recently, the Company completed approximately 350 metres of underground vein mapping at the lowest level and collected 56 rock channel samples. Assay results ranged from 0.01 g/t to 55.62 g/t gold and from 0.8 g/t to 278.7g/t silver. The most significant channel sample locations and results from Sucre are summarized below.


Sample NumberSample
Location
Sample
Length (m)
Gold
(g/t)
Silver
(g/t)
Total
Equivalent
(g/t)*
ZG00267148.17E
9600555.32N
0.20 55.62 266.40 59.72
ZG003 647149.87E
9600567.02N
0.20 16.72 42.00 17.37
ZG013 647114.04E
9600545.00N
0.30 26.92 169.00 29.52
ZG014 647104.48E
9600578.24N
1.20 11.74 119.00 13.57
ZG015 647095.89E
9600568.82N
0.64 16.80 117.00 18.60
ZG033 648741.00E
9600821.00N
0.72 18.96 18.00 19.24
ZG043 647050.04E
9600798.82N
1.5 x 1.5
bulk sample
45.60 10.70 45.76
ZG203 647244.87E
9601706.36N
1.5 x 1.5
bulk sample
3.50 278.70 7.79

* A silver-gold ratio of 65 to 1 was used for gold equivalent calculation.

Pacayurco

Past mining at Pacayurco exposed a vein of approximately 200 metres in length with varying widths from 0.3 to 2.4 metres. Recent exploration completed at Pacayurco included 150 meters of underground mapping and the collection of 36 rock channel samples. Assay results ranged from 0.02 g/t to 99.57 g/t gold. Sampling widths varied from 0.3 to 1.5 metres. The Company is still awaiting the results of silver assays.

The Company is highly encouraged with the results from its work to date, which will add to the Zaruma Gold Project’s resource base. Underground and surface mapping and channel sampling is continuing in the Tamayo and Tablon areas. More information will be released as results become available.

Exploration of the Company’s properties is under the supervision of Greg Whitfield, the Company’s Exploration Manager and a “qualified person”, as defined by National Instrument 43-101. Mr. Whitfield is responsible for the preparation of technical information in this News Release. Samples are sealed on the property and shipped to the BSI Inspectorate laboratory in Lima, Peru for preparation and gold fire assay. Sample pulps are shipped by BSI Inspectorate to its laboratory in Reno, Nevada for silver fire assay and multi-element ICP analysis.

About Dynasty

Dynasty Metals & Mining Inc. is a Canadian based mining company involved in the exploration and development of mineral properties in Ecuador. For further information about the Company, please contact Murray Oliver at (604) 687-0888 Ext. 3 or info@pemcorp.com or visit the Company’s web-site at www.dynastymining.com

Dynasty Metals & Mining Inc.
Robert Washer, President and CEO

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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