Oxiana to Sole Fund Drilling of Four Copper-Gold Targets

Adelaide, July 27, 2006 (ABN Newswire) - Minotaur Exploration Ltd (ASX: MEP) is pleased to announce that under its exploration alliance with Oxiana Limited (Oxiana), Oxiana have elected to sole fund the drilling of four iron oxide copper gold (IOCG) targets on the Gawler Craton and the Cloncurry district.

The targets comprise:

- Cormorant Prospect, EPM 8608, Cloncurry District

- Bulgunnia A2 Target, EL 3045, Gawler Craton

- Bulgunnia Bore 17 Target, EL 3045, Gawler Craton

- Nonning Target, EL 3535, Gawler Craton

Drilling is expected to commence at the Cormorant Prospect in late August, progressively shifting to the other targets, and involve 7 RC/DDH holes for approximately 1800 metres.

Background
The Exploration Alliance between the Company and Oxiana covers greenfield exploration for copper/gold in a number of areas of interest. When a prospect is identified by the Company, Oxiana may elect to sole fund the drill testing of the target.

Two of the tenements are under farm-in agreements with third parties, and the participation of Oxiana is subject to their approval including the completion of a deed agreeing to the terms and conditions of the existing agreements.

EPM 8608
The Company has farmed in to EPM 8608, held by BHP Billiton Minerals Pty Ltd, where it is initially earning a 51% interest by expending $0.5 million. Subject to finalഊagreement with BHP Billiton, Oxiana may earn 75% of the Company's interest by funding the Company to decision to mine.

EL 3045
The Company and BHP Billiton Minerals Pty Ltd are joint farminees to EL 3045 where they have together earned a 51% interest from Dominion Mining Limited and Resolute Resources Limited. and are now proceeding to earn a combined interest of 80%. As part of this Stage 2 farm-in, BHP Billiton has elected to be a non-contributing diluting partner so that equity interests at the end of Stage 2 will be Minotaur 59.2%, BHP Billiton 20.8%, Dominion 15%, Resolute 5%. Subject to final agreement with BHP Billiton, Oxiana may earn 75% of the Company's equity by funding it to decision to mine.

EL 3535
The Company holds a 100% interest in Nonning, EL 3535. Oxiana has the right to earn 75% in the project through expenditure of A$4m.

About MINOTAUR EXPLORATION LTD

Minotaur Exploration Limited is an Australia-based mineral exploration company. During the fiscal year ended June 30, 2005 (fiscal 2005), the Company continued to seek extensions of areas held and to also sought out new areas with potential areas of mineralization, and evaluated results achieved through surface sampling, drilling and geophysical surveys carried out during fiscal 2005. Its subsidiaries include Minotaur Operations Pty Ltd., Minotaur Ventures Pty. Ltd. and Minotaur Resources Investments Pty. Ltd.