Cash Minerals and Twenty-Seven Capital Streamline Uranium Options

Cash Minerals Ltd. (TSX VENTURE:CHX) announced today the formation of Yukon Uranium Project ("YUP"). YUP amalgamates and expands certain rights and obligations of Cash Minerals Ltd. and Twenty-Seven Capital that were outlined in earlier agreements dated November 26, 2004 and September, 20 2005.

The YUP agreement simplifies operating procedures for uranium exploration programs being conducted jointly by Cash Minerals and Twenty-Seven Capital in Yukon. The changes provide a workable framework that will permit much larger exploration expenditures on a timely basis, which in turn will allow the companies to quickly respond to favourable results and will provide Cash Minerals the opportunity to obtain additional geological information before making major development and expenditure decisions.

Mr. Basil Botha, President and CEO of Cash Minerals Ltd., stated "The new option agreement with Twenty-Seven Capital allows more flexibility to focus on uranium targets that have been identified on having the most potential. We are currently budgeted to spend $4.5 million on uranium exploration in 2006, and have sufficient funds in the treasury to expand the program".

YUP holds interests in 11 uranium properties in various parts of Yukon, the most advanced of which are the Igor and Lumina projects. Igor features widespread copper and uranium mineralization in a discordant IOCG type breccia body while Lumina hosts numerous high grade uranium showings associated with structural zones immediately beneath a regional-scale unconformity.

Twenty-Seven Capital currently owns a 100% interest in YUP through its property ownership and a $100,000 advance it has made toward 2006 exploration expenditures.

Under the terms of the YUP agreement, Cash Minerals can earn a 50% interest in YUP. This would require Cash Minerals to make $200,000 in cash payments to Twenty-Seven Capital and exploration expenditures totaling at least $3,400,000 before December 31, 2006. Cash Minerals has the right to expend more than $3,400,000 in this period. While additional expenditures would not earn Cash Minerals an increased interest in YUP, the Company would benefit by obtaining additional information regarding the properties, which may assist in making decisions concerning certain rights to earn a larger interest in one or more of the properties.

Assuming the required cash payments and work expenditures are made by December 31, 2006, Cash Minerals shall have earned its 50% interest in YUP. On or before January 31, 2007, Cash Minerals must elect to:

(1) retain a 50% interest in YUP and have its YUP interests transferred to a joint venture (Yukon Uranium Joint Venture - "YUJV") owned equally by Cash Minerals and Twenty-Seven Capital; or

(2) proceed to earn a 75% interest in one or more properties by making a $1,000,000 cash payment for each property selected and subsequently produce a bankable feasibility study for each selected property, with all of its other YUP interests being transferred to YUJV; or

(3) defer its decision to January 31, 2008 and make additional work expenditures in YUP totaling $2,000,000 or more prior to December 31, 2007. In the event that Cash Minerals elects to defer its decision, Cash Minerals and Twenty-Seven Capital will each retain a 50% interest in YUP, and any work expenditures shall be made by Cash Minerals. In the event that Cash Minerals completes the additional $2,000,000 work expenditure by December 31, 2007, it must make an election on or before January 31, 2008 to either: 1) proceed to earn a 75% interest in one or more properties by immediately making a $1,000,000 cash payment for each property selected and subsequently producing a bankable feasibility study for each selected property, with all of its other interests in YUP transferring to YUJV; or, 2) decline to proceed to earn a larger interest in any property and transfer all of its interests in YUP to YUJV. In the event that Cash Minerals does not complete the additional $2,000,000 work expenditure by December 31, 2007, its interests in YUP shall transfer to YUJV.

If after electing to earn a 75% interest in a property, Cash Minerals later decides that a property does not warrant preparation of a bankable feasibility, the property shall be transferred to YUJV without Cash Minerals earning a larger interest in that property than it holds in YUJV. Upon formation of YUJV, each party will have a 50% interest in YUJV. If the participating interest if either party to YUJV is subsequently diluted to less than 10%, that interest will automatically be converted to a 1% net smelter return royalty interest and that party will lose all right to participate in subsequent work programs.

On January 1, 2009, the Project Area shall automatically reduce to a three kilometre area of interest surrounding each claim owned by YUJV on that date. After that date Cash Minerals and Twenty-Seven Capital shall be entitled to conduct independent exploration within the remainder of the former Project Area.

About Cash Minerals Ltd.

Cash Minerals Ltd. (www.cashminerals.com) is an emerging energy resource company listed on the TSX Venture Exchange under the symbol "CHX" and has approximately 60.8 million shares outstanding. Current activities are focused on Uranium, Coal and Alternative Fuels (SynFuel).

Cash Minerals' Uranium exploration projects boast major stakes in eight quality projects, all of which were previously drilled. Four resemble an Olympic Dam-type project, two are modeled after the prolific Rossing Deposit in South Africa and one is testing possible unconformity-related, high grade, vein-and-fracture-controlled uranium mineralization.

The Division Mountain Coal Project in Yukon comprises of five Coal leases measuring 776.4 hectares and 30 Territorial Coal Exploration licenses covering some 360,000 hectares in coal-bearing stratigraphy. The Updated NI 43-101 Report dated December 21, 2005 by T. C. Becker, B.Sc., P.Geo. of Norwest Group (filed with SEDAR on January 10, 2006) confirmed coal resources of 52.5 million tonnes entirely in the Measured category.

Cash Minerals is also investigating opportunities in China and North America for using Fischer-Tropsch technology to produce clean burning alternative fuels from coal.

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

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