La Mancha Resources Inc.

Combination of Areva's International Gold Producing Assets With La Mancha Resources Inc. to Create an International Diversified Gold Producer

    Vancouver, Canada (ots/PRNewswire) - La Mancha Resources Inc. ("La Mancha"), and  Areva today announced that  they have agreed on certain terms to combine the  international gold  producing and exploration assets of Areva located in Australia, Sudan and  Côte D'Ivoire with La Mancha's Argentina exploration assets, in exchange for  Areva receiving 83,175,000 La Mancha common shares and 7 million warrants to  purchase La Mancha common shares at an exercise price of CAD$2.00, expiring  on the second anniversary of closing of the transaction. Following the  completion of the transaction and after the issue of other shares in  connection with the transaction inclusive of a financing, Areva will own at  least 60% of the fully diluted equity (excluding the 7 million warrants) of  the enlarged company. Attributable gold production exceeded 100,000 ounces  for both 2004 and 2005.

    The transaction includes a private placement of La Mancha common shares  of CAD$40 million at $1.50 per share raised through a banking syndicate led  by Ocean Equities Ltd. of London, England, that will result in the Company  having no debt, substantial cash flow from its operations, and funds for a  significantly expanded series of programs for exploration and mine  development projects.

    The transaction is subject to, among other conditions, completion of  satisfactory due diligence by both parties, the parties completing a  definitive agreement to effect the transaction, approval by competent  corporate body of Areva, approval by La Mancha shareholders, and acceptance  by regulatory authorities.

    Technical reports on the four principal mining projects conforming to  National Instrument 43-101 are being finalized and will be made public upon  regulatory acceptance.

    An information circular will be delivered to La Mancha shareholders in  the coming weeks following the setting of a date for the requisite  shareholder meeting. The transaction is anticipated to close prior to the  end of May, 2006.

    ON BEHALF OF THE BOARD

    Walter H. Berukoff

    Chairman and CEO

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

    TSX Venture Exchange Symbol: LMA

ots Originaltext: La Mancha Resources Inc.
Im Internet recherchierbar: http://www.presseportal.ch

Contact:
For further information: please visit our website at
www.lamancharesources.com, or contact the Company at Tel:
+1-(604)-998-1250 or Fax: +1-(604)-998-1253 or email:
info@lamancharesources.com



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