CMR Cambridge Mins.

    Cambridge Mineral Resources plc / Ticker: CMR / Index: AIM / Sector: Mining & Exploration

                      Cambridge Mineral Resources plc ('CMR' or 'the Company')
                                  Update on financing arrangements

Cambridge  Mineral Resources plc, the AIM listed mining exploration and production company  primarily
targeting precious metals in South America, announces that amendments have been made to certain terms
of  its  existing financing arrangements for the development of its gold mine projects  in  Colombia.
These  financing arrangements were put in place to fund the development of up to three of CMR's  gold
mine  projects in Colombia ('the Mines'), including the Quintana Gold mine which commenced production
on 9 November 2008.

The  arrangements, which take the form of a Prepayment Agreement ('the Agreement') dated 31  December
2007,  provide for the lender ('the purchaser') to make available to the Company up to a  maximum  of
US$  15 million in aggregate for the Mines with such financing to be spread across three prepayments.
CMR  is  obliged to make available to the purchaser, gold, or the cash equivalent, over a  period  of
approximately 36 months following each mine start.

The  proceeds  from the first prepayment, totalling US$5.5 million, were used to bring  the  Quintana
gold mine into production, and to identify two additional CMR gold mine projects, which are currently
progressing towards feasibility study stage.

In  respect  of  the first prepayment, CMR was to make a total of 11,750 ozs gold  available  to  the
purchaser, representing approximately 25% of estimated total production during the term.

Under  the  terms of the Agreement, each prepayment is to be accompanied by the grant of warrants  in
the  Company,  equivalent upon exercise to 15% of the Company's issued share capital  for  the  first
prepayment, 10% for the second prepayment and 5% for the third prepayment.  The warrants, in  respect
of the first prepayment, were to be granted at an exercise price of 3.75p, and warrants in respect of
the  subsequent prepayments were to be granted at the same percentage premium to the market price  as
that of the first prepayment (a 25 per cent. premium).

On  10  March 2008 the Company held a General Meeting in which shareholders approved the increase  in
share capital required to grant the warrants under the above terms for the first prepayment.

Since  then  the  Company  has granted the warrants relating to the first prepayment.   It  has  also
brought  its  first mine, Quintana, into production in November 2008.  As previously  announced,  the
development  of Quintana has taken longer than expected mainly due to adverse weather conditions.  In
addition,  the cost of development increased by US$500,000 to US$6,000,000 due primarily  to  adverse
currency  fluctuations between the US Dollar and the Colombian Peso, the cost of which was funded  by
the purchaser and added to the first prepayment.

As  a result of the foregoing, CMR has agreed to provide the purchaser with a revised total of 13,691
ounces of gold and to extend the delivery term under the first prepayment to 39 months.  In addition,
the  purchaser  has requested that the exercise prices of any warrants to be granted upon  subsequent
prepayments be amended to be at the closing mid-market price of the Company's shares as at  the  date
of  signing any such further prepayment arrangement rather than at a 25 per cent. premium to the then
market  price.   The  Company has agreed to this request subject to approval  by  shareholders,  such
approval to be sought at a general meeting that will be held no later than 1 May 2009.  The purchaser
has  also stated that should shareholders not approve the proposed amendments to the exercise  prices
of  the  warrants  then  such non-approval will be deemed to be an event  of  default  entitling  the
purchaser  to  terminate  the  Agreement.   CMR is not  obliged  to  enter  into  further  prepayment
arrangements with the purchaser beyond the first prepayment which has already been drawn down.
                                                  
                                             ** ENDS **

For further information, visit www.cambmin.co.uk or contact:
Colin Andrew              Cambridge Mineral Resources plc                  +44 (0) 20 7663 5618
Managing Director                                                          candrew@iol.ie
Michael Burton            Cambridge Mineral Resources plc                  +44 (0) 20 7663 5618
Finance Director                                                           mburton@cambmin.co.uk
Gavin Burnell /           Ruegg & Co Limited                               +44 (0) 20 7584 3663
Roxane Marffy
Colin Rowbury             Religare  Hichens  Harrison plc                  +44 (0) 20 7382 7771
Tom Beattie               Haywood Securities (UK) Limited                  +44 (0) 20 7031 8018
Victoria Thomas           St Brides Media & Finance Ltd                    +44 (0) 20 7236 1177

Notes to Editor
Cambridge Mineral Resources plc is an AIM listed mining and exploration company focussed on  becoming
a  producer  of  precious metals with an output equivalent to 100,000 oz gold per  annum.   Primarily
targeting  precious  metals  in South America, its strategy is to acquire  established  resources  at
advanced stage exploration or near term production and develop them to economically mineable reserves
through  further exploration.  The Company has a portfolio of mineral projects at varying  stages  of
commercialisation including its two key projects, the Quintana gold mine in Colombia, which commenced
production  in November 2008, and the Rasuhuilca silver-gold mine in Peru.  The Company  also  has  a
portfolio  of  assets in Europe, which it is currently in the process of seeking  to  divest  through
either joint-venture or sale.

                                                                
Cambridge Mineral Resources Plc



                                                                

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