Cedar Mountain Announces LOI on Significant Zacatecas, Mexico Properties

Cedar Mountain Exploration Inc. (TSX VENTURE:CED) ("Cedar" or "the Company") is
pleased to announce that it has entered into two letters of intent ("LOI's")
with Sterling Mining de Mexico S.A. de C.V ("Sterling") whereby Sterling has
granted Cedar the option to acquire a 100% interest in the Jimenez del Tuel and
Venaditas-Chapis properties in the State of Zacatecas in central Mexico.
Zacatecas state is host to several world class mineral deposits including the
recently discovered San Nicolas (VMS), Penasquito and Camino Rojo deposits. The
acquisition of the Jimenez del Tuel and Venaditas-Chapis properties will give
Cedar exposure to two exciting new exploration opportunities in addition to its
portfolio of gold projects in British Columbia.


Jimenez del Tuel Gold project

The Jimenez del Tuel project is located at the west-central side of Zacatecas
State near the Zacatecas-Durango state border, 130 km due west of the city of
Fresnillo. The bulk mineable precious metal target covers some 9,500 hectares
centered on a large Tertiary aged intrusive-extrusive volcanic centre, which has
intruded Cretaceous aged limestones. Coalescing zones of epithermal hydrothermal
alteration covering several square kilometers are present within the project
area, and historic small scale mining has exploited precious metal
mineralization with associated base metal sulphides from silicified breccias and
stockwork silica zones. Jimenez del Tuel lies at the southern end of a trend of
Tertiary aged intrusions emplaced within Cretaceous carbonate rocks, which host
significant epithermal vein, replacement and skarn type deposits such as the
Chalchihuites and San Martin mining districts which have been exploited since
the mid 1500's and are located 20 km and 40 km respectively north of the project
area.


Venaditas-Chapis VMS project

The Venaditas-Chapis claim group lies within the relatively newly recognized
Zacatecas VMS district and is about 20 km from, and on trend with the Chilitos
Formation hosted San Nicolas VMS deposit. San Nicolas is one of the largest VMS
deposits (estimated reserves of 72 Mt at 1.35% Cu, 2.27% Zn, 0.53 g/t Au and 30
g/t Ag, and a copper-rich Lower zone containing a resource of 11.4 Mt grading
1.62% Cu and 0.48% Zn, (Johnson et al, 1999(i)) in the world currently being
developed by owners Teck Cominco Ltd. and Goldcorp Inc. The Venaditas-Chapis
area is located in an area deemed to be highly prospective for VMS
mineralization. Other significant VMS deposits such as Bilbao and Francisco I
Madero area also located proximal to the project area. The Venaditas-Chapis
project covers approximately 3,900 hectares, and is located 60 km east of the
city of Zacatecas, close to the town of Ojo Caliente. The claims cover primarily
Jurassic/Cretaceous aged volcano-sedimentary rocks of the Chilitos Formation,
host to the San Nicolas deposit, which have been intruded by Tertiary igneous
bodies. The Venaditas-Chapis project also host potential for vein, stockwork and
skarn type mineralization associated with Tertiary intrusions analogous to the
Real de Angeles stockwork deposit located some 20 km east of the project area
which hosted a mineral reserve in excess of 75 million tonnes of bulk mineable
silver-lead-zinc ore.


Cedar is immediately embarking on the completion of a NI 43-101 geological
technical reports on these properties and other related due diligence matters. A
finder's fee is applicable on these transactions.


The terms to acquire a 100% interest in these projects subject to a 3% net
smelter royalty, "NSR": are as follows:




----------------------------------------------------------------------------
Jimenez del Tuel Property                  Cash        Cedar           Work
                                       Payments       Shares     Commitment
                                          USD(1)                        USD
----------------------------------------------------------------------------
LOI                                      25,000            -              -
----------------------------------------------------------------------------
Formal Agreement and 43-101 Report      200,000      250,000              -
----------------------------------------------------------------------------
Six Months from LOI                     200,000            -              -
----------------------------------------------------------------------------
Twelve Months from LOI                        -      500,000        500,000
----------------------------------------------------------------------------
Twenty-Four Months from LOI                   -      500,000      1,000,000
----------------------------------------------------------------------------
Thirty-Six Months from LOI                    -      750,000      1,000,000
----------------------------------------------------------------------------
Totals                               $  425,000    2,000,000   $  2,500,000
----------------------------------------------------------------------------

(1) Cash payment is the lesser of $425,000 and actual costs incurred by
    Sterling.
    Cedar has the option to purchase 1% of the Jimenez del Tuel NSR for
    $1,000,000US.

----------------------------------------------------------------------------
Venaditas-Chapis Property                  Cash        Cedar           Work
                                       Payments       Shares     Commitment
                                          USD(2)                        USD
----------------------------------------------------------------------------
LOI                                      25,000            -              -
----------------------------------------------------------------------------
Formal Agreement and 43-101 Report      100,000      250,000              -
----------------------------------------------------------------------------
Six Months from LOI                     100,000            -              -
----------------------------------------------------------------------------
Twelve Months from LOI                        -      500,000        500,000
----------------------------------------------------------------------------
Twenty-Four Months from LOI                   -      500,000      1,000,000
----------------------------------------------------------------------------
Thirty-Six Months from LOI                    -      750,000      1,000,000
----------------------------------------------------------------------------
Totals                               $  225,000    2,000,000   $  2,500,000
----------------------------------------------------------------------------
(2) Cash payment is the lesser of $225,000 and actual costs incurred by
    Sterling.
    Cedar has the option to purchase 1% of the Venaditas-Chapis NSR for
    $1,000,000US.



In addition to the above terms, Cedar agrees to issue an additional one million
Cedar shares to Sterling in the event of a take-over of Cedar by an independent
third party at a time when the principal asset of Cedar is one of the Sterling
properties.


Peter Kleespies, MSc., P. Geol., being a Director of the Company, is the
Qualified Person pursuant to NI 43-101 that is responsible for the exploration
disclosure as set out above.


(i) Johnson, J., Montante, A., Kearvell, G., Janzen, J. and Scammel, R., 1999,
Geology and Exploration of the San Nicolas polymetallic (Zn-Cu-Au-Ag)
volcanogenic massive sulphide deposit, In: Jambor, J.J. (ed), VMS and
Carbonate-Hosted Polymetallic Deposits of Central Mexico, B.C. and Yukon Chamber
of Mines Cordilleran Roundup, p. 45-54.


Completion of the transaction is subject to a number of conditions including,
but not limited to, the parties entering into a definitive agreement and
Exchange acceptance. There can be no assurance that the transaction will be
completed as proposed or at all.


About Cedar Mountain

Cedar Mountain Exploration Inc. is mineral exploration company focused on gold
and base metal projects. The companies other assets include the Cedar Creek Gold
Property, a bulk tonnage sediment hosted gold target situated immediately
adjacent to Skygold Ventures Ltd.'s Spanish Mountain project in the Cariboo
region of south-central British Columbia, the Lemon Lake Property, also in the
Cariboo region, located 9 km northeast of the village of Horsefly and the Venus
Property approximately 16 km northeast of Salmo in south-eastern British
Columbia.


About Sterling Mining de Mexico S.A. de C.V

Sterling Mining de Mexico S.A. de C.V is a private Mexican mineral exploration
with significant mineral assets primarily in the State of Zacatecas in central
Mexico. Sterling's majority of shares are owned by Sterling Mining Company, TSX
Exchange: SMQ; OTCBB: SRLM; and the Frankfurt Stock Exchange: SMX.


On behalf of the Board of Directors,

Charles Chebry, Chairman, President and CEO
Cedar Mountain Exploration Inc. (TSXV:CED)
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