Glencar Mining PLC 08 December 2005 GLENCAR MINING PLC GLENCAR ANNOUNCES IMPORTANT PROGRESS AT SANKARANI Glencar Mining plc ("Glencar") is pleased to announce a number of important developments in respect of its Sankarani Project in Mali. Option Agreements Glencar has signed agreements with Africa Resources s.a.r.l. ("Africa Resources") and La Societee Malienne de la Petite Mine d'Or s.a.r.l. ("Petite Mine"), whereby, in consideration of the issue of 212,500 new shares in Glencar to each of Africa Resources and Petite Mine, they have granted Glencar the option to acquire their residual 5% interest in the Bokoro, Sanioumale, Farasaba and Komana licences in Mali (the "Option") for a payment of US$1,000,000, payable in cash or shares, at Glencar's election. The Option is exercisable by Glencar at any time up to 90 days following the time when senior finance for a mine within the licence area has been secured and accepted. Previously announced discussions with Gold Fields Limited ("Gold Fields") have continued towards the completion of a binding legal agreement through which Gold Fields may earn a 65% interest in the three licences at Bokoro, Sanioumale and Farasaba. If Gold Fields earns the 65% interest and Glencar exercises the Option, Glencar would then hold a 25% interest in the licences, with the Mali Government holding the remaining 10%. Glencar expects to be in a position to make a further announcement in relation to the proposed agreement with Gold Fields shortly. A fourth licence in the Sankarani area, the Komana Licence, is currently being drilled by Glencar. The Komana Licence is not incorporated in the proposed agreement with Gold Fields, and exercise of the Option would mean that Glencar would hold up to 90% of the Komana Licence, with the Mali Government holding the remaining 10%. The proposed agreement with Gold Fields does provide a right of first refusal to Gold Fields in the event Glencar wishes to seek a partner for the further development of the Komana Licence. Solona Licence Glencar has acquired the rights to a fifth licence in the Sankarani area, at Solona. This licence is 250 square kilometres in area and is currently held by Africa Resources. Glencar has a 51% interest in the licence at this point and can acquire a 90% interest in the licence (the remaining 10% reserved for the Mali Government) through payments of US$20,000 over a two year period. The Solona licence lies within geologically and structurally prospective terrain adjacent to the Komana licence. Glencar has already acquired a significant database of previous work on the licence which shows many very well defined geochemical anomalies, none of which has been drill-tested by the former licencees. For Further Information contact: Glencar Mining plc Hugh McCullough Tel: +353 1 661 9974 e-mail: info@glencarmining.ie Heneghan PR Rachel Watchorn Tel: +353 1 6607395 e-mail: rachel@hpr.ie 8 December 2005 This information is provided by RNS The company news service from the London Stock Exchange