Rose Petroleum plc

Acquisition of exclusive mineral rights in south-eastern Paraguay, and operations update

17-November-2004

Vane Holdings plc (?Vane? or ?the Company?) is pleased to report that its wholly-owned subsidiary ?Vane Minerals Ltd, Surcusal Paraguay? has acquired the exclusive mineral rights to three large blocks of land in south-eastern Paraguay, South America, subject to the standard issue of environmental licences.

Each land holding is based near to the Brazilian border and is considered to be prospective for the discovery of gold and possibly copper mineralization.  Previous work on the properties, comprising a two year programme of extensive surveying and stream sediment sampling, has outlined 15 distinct gold anomalies, all of which are significant in size.

The three blocks, which are held as ?Investigation Permits?, cover an area of approximately 3,800 square kilometres. They are located in a relatively under-explored corner of the mineral-rich Brazilian Pre-Cambrian Shield, which has historically proved rich in gold and a number of other mineral commodities.

Investigation Permits are valid for one year, with a six-month extension if necessary. Specific exploration targets developed during that period will be converted to ?Mining Concessions?, under which programmes of road construction and drilling can be carried out.

Steven Van Nort, CEO of VANE, comments ?We are very excited to have acquired the mineral rights to these large land holdings, particularly since we believe there is great potential for future gold discoveries in Paraguay.  This country is considerably under-explored in comparison to its neighbouring countries in South America, though the geology is just as prospective.?

Operations Update

Through a combination of geological mapping, geochemical sampling and geo-physical surveying, VANE has identified drilling targets on its Guadalcazar project in east-central Mexico.  A drilling programme is expected to begin in the first quarter of 2005.  Likewise, work on Diablito is progressing as planned, with production still on target for the first quarter of 2005.

VANE announced on 31st August 2004 that it has acquired an option to purchase the Mina Charay gold-silver prospect in the State of Sinaloa in western Mexico.  The Company intends to fast track development of this project, which already contains known gold and silver mineralisation, and will begin a six-hole drilling programme as soon as a drilling rig can be mobilised.

VANE?s strategy is to bring the Diablito and Mina Charay projects into production as quickly as possible in order to provide income for the Company?s exploration programme, with the ultimate objective of it being self-funding.
 
Enquiries:  

VANE Holdings plc  
Matthew Idiens
020 7667 6322
www.vaneminerals.com

Seymour Pierce Limited 
Sarah Wharry
020 7107 8000

Parkgreen Communications
Justine Howarth / Cathy Malins
020 7493 3713

Notes to editors:

VANE Holdings is an exploration and development company focused on defining and initiating prospective mineral projects.  The Company benefits from a highly qualified and experienced management team with a proven track record in exploration and development.  The Company is ideally placed to capitalise on project acquisition opportunities, as it has negotiated access to a 7,000+ file global exploration database, excluding Indonesia, from US mining group Freeport-McMoRan, one of the world's largest producers of copper and gold.

To date, VANE has acquired 100% of the Diablito project and an option to acquire 100% of the Guadalcazar project.  Diablito is an advanced high-grade precious metal vein deposit located in the State of Nayarit, west-central Mexico and the Company expects to bring it into production in the first quarter of 2005.  Revenues generated by production at Diablito will be used to help fund exploration at Guadalcazar, an early stage exploration property consisting of a large newly recognised hydrothermal gold system having the potential to define a large gold deposit (possibly in excess of one million ounces).  Guadalcazar is located in east-central Mexico, 80 km northeast of San Luis Potosi in the State of San Luis Potosi.  More recently, VANE Minerals has entered into an option agreement with Minera PAFEX, S.A. de C.V. to acquire the Mina Charay gold and silver prospect in the State of Sinaloa in western Mexico.