continental value 1 billion next to aee sweden

Continental Precious Minerals Announces the Filing of Preliminary Economic Assessment of Viken MMS Project
Estimates Net Present Value of US$1 Billion and Internal Rate of Return of 10 Percent
TORONTO, ONTARIO, Oct. 19, 2010 (Marketwire) -- Continental Precious Minerals Inc. (TSX:CZQ) (the "Company" or "Continental") announces that the Preliminary Economic Assessment ("PEA" or "scoping study") of the Company's Viken MMS Licence in Sweden has been filed on SEDAR. The results of the PEA were initially published in a news release on September 13, 2010.

The highlights of the PEA include:



- Pre-tax net present value of US$1.039 billion (at a 6.5 percent discount rate) - Internal rate of return of 10.3 percent using base case metal prices of US$65.30/lb uranium oxide, US$15/lb vanadium and US$15/lb molybdenum - 16-year life of conventional open pit mine producing 40,000 tonnes per day

"With the filing of the PEA, investors will see the significant development potential at Viken," said Ed Godin, President and CEO. "Also, this study only includes 223 million tonnes of the indicated and inferred resources that are above a Net Smelter Return cut-off grade of US$60 per tonne in its base case. The total resource is much larger and includes other smaller areas with similar grades."

The PEA was completed by P&E Mining Consultants Inc. with EHA Engineering Ltd. completing the metallurgical component. The study recommends that Continental advance the Viken project with extended and advanced metallurgical, geotechnical and environmental studies to a pre-feasibility stage.

"Not only do we have a project that is economically viable, but we believe that it will bring considerable economic benefit to the region," added Mr. Godin. "The Viken project will bring benefits through local employment and services, as well as tax and royalty revenue."

The PEA is preliminary in nature and includes inferred resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty that the preliminary assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Reference is made to the complete copy of the PEA for the basis of the PEA, qualifications and assumptions