Mr. Murray Nye reports

DEMESNE RESOURCES LTD. GRANTS STOCK OPTIONS

An aggregate of 1.66 million incentive stock options have been granted to certain consultants and an officer of Demesne Resources Ltd. in accordance with the company's stock option plan. The options are exercisable at a price of 55 cents per share, vesting will range from immediately to two years and expiring three years of the date of grant.

About Demesne Resources Ltd.

Demesne Resources is a British Columbia-based company involved in the acquisition and exploration of magnetite mineral properties. The company's Star project consists of five contiguous mineral titles covering an area of approximately 4,615.75 hectares, located in the Skeena mining division in British Columbia, Canada. The company has entered into an option agreement pursuant to which it is entitled to earn an undivided 100-per-cent interest in the Star project. Demesne has also entered into an option agreement, pursuant to which it can acquire a 100-per-cent interest (subject to a 2-per-cent royalty) in and to the IMA mine project, a past-producing underground tungsten mine situated on 22 patented claims located in east-central Idaho in the United States.

We seek Safe Harbor.