First NI 43-101 Compliant Resource For La Bolsa Property

VANCOUIVER, BC - Minefinders Corporation Ltd. reported the first NI 43-101 compliant resource estimation for its 100 percent owned La Bolsa property located in northern Sonora, Mexico. At a nominal 0.25 grams per tonne (gpt)gold cutoff, the measured and indicated resource estimate includes 15.9 million tonnes grading 0.706 gpt gold and 9.4 gpt silver totaling 360,000 ounces of gold and 4.8 million ounces of silver. An additional 47,000 ounces of gold with 480,000 ounces of silver at the same cutoff are classified as inferred resources.

This NI 43-101 compliant resource is an important step in advancing the La Bolsa property to a construction decision, commented Mark Bailey, President and Chief Executive Officer. La Bolsa has the potential to be the Company s second low cost mine and, concurrent with the in process pre-feasibility study on the construction of a mine at La Bolsa, we are continuing the ongoing drill program to further expand the resource.

The resource estimation is based on the results from 165 drill holes (81 reverse-circulation holes and 84 core holes) completed within the property. The Company is continuing to drill on the property with both a core drill rig and a reverse-circulation drill rig in order to continue to define the overall extent and geometry of the La Bolsa mineralized zone.

The gold mineralization occurs within a shallowly dipping continuously mineralized oxidized blanket that is subparallel to topography and approximately 1,000 meters (3,300 feet) in length and up to 800 meters (2,600 feet) in width with thicknesses that range from 10 to 50 meters (30 to 165 feet). Recent drilling at La Bolsa continues to extend that zone and this mineralization remains open both down-dip and along strike.

A pre-feasibility study of the economic viability of a mine at the La Bolsa property is in process with results expected to be reported by the end of this year. This updated resource and results from the current La Bolsa drill program will be used as the basis for construction of the reserve block model to be used in the study. The shallow dip of the majority of mineralization in close proximity to the surface and favorable metallurgical characteristics suggest a mine plan that will incorporate low-cost open-pit mining in combination with simple heap-leach recovery of gold and silver.

Bailey said, "Having reached the important milestone of commercial production at Dolores in Mexico, we expect that production will continue to increase and cash costs will continue to decrease as the mine progresses to full production."

Metal production is expected to continue to increase through the third and fourth quarters of 2009 as the volume of ore and time under leach increases.

In the second half of 2009, Minefinders expects to sell between 50,000 and 60,000 ounces of gold and between 1.2 million and 1.3 million ounces of silver at an operating cash cost of approximately $420 to $475 per gold-equivalent ounce assuming a 71 to one silver to gold ratio.

For all of 2009, expected sales are between 85,000 and 95,000 ounces of gold and between 1.8 million and 1.9 million ounces of silver at an operating cash cost of approximately $450 to $485 per gold-equivalent ounce, assuming the same 71 to one silver to gold ratio for the second half of 2009. All gold and silver production is from the Dolores Mine.

Due to delays in relocating the old Dolores village, mining in the fourth quarter of 2008 and in the first and second quarter of 2009 focused on the north end of the open pit which is characterized by lower grade ore, particularly with respect to silver.

Subsequent to the end of the second quarter, Minefinders successfully completed the relocation of the remaining residents from all areas that will be affected by future mining operations. With full access now available, the Company is accelerating construction of haul roads and pre-stripping to expose the high-grade central dome area of the deposit. Access to this higher grade ore is expected in November of this year with the benefit of higher production and lower cash costs reflected in the second quarter of 2010.

"With the relocation of the village complete, we now have access to the heart of the Dolores deposit. While the delay in accessing the high-grade gold and silver ore present in the central dome area has affected our 2009 production outlook, the full relocation of the old Dolores village eliminates a significant obstacle to the efficient operation of the mine and concludes a protracted process of negotiation," said Bailey.

The company's address is 2288-1177 W Hastings St., Vancouver, BC V6E 2K3, (604) 687-6263, fax: (604) 687-6267.