Absolut Resources Corp. (ABS) is pleased to announce that the Company has received drilling results from the first three holes of its phase two reverse circulation drill program completed on the Pico Machay, High Sulphidation Gold Project in Peru. Highlights of the drilling include hole RC108 intersecting 106.5m @ 1.87 g/t Au including 42m @ 3.00 g/t Au.

Drill results are as follows:

As a reference, the Newmont / Buenaventura world-class Yanacocha high sulphidation gold mine has an overall grade of 0.96 g/t Au and Barrick's Alto Chicama deposit grades 1.39 g/t Au.

All three holes, which were drilled between 90m to 160m to the west of the discovery zone, intersected significant widths of mineralisation from near surface, validating the geological model. See NR 08 July 2004.

Drilling was targeted to test the along strike continuity of a 1.4km by 150m resistive unit defined by prior geophysical surveys. The resistive body expresses itself at surface as a vuggy silica unit striking east west and forming a dip slope on the southern side of the central mineralised ridge.

The second phase 3,040m drill program consisting of 19 Reverse Circulation drill holes has been completed and assays are pending for the remaining 16 holes.

Absolut's wholly owned subsidiary, Minera Calipuy SAC has an agreement with Monterrico Metals PLC to earn up to a 75% interest in the Pico Machay gold project. Absolut has fulfilled its obligation to drill a minimum of 2,000 meters and incur a minimum of $450,000 in exploration before the second anniversary of the agreement.

Absolut has implemented a quality control program to ensure best practice in chemical sampling and analysis of surface and reverse circulation drilling samples.

Absolut Resources Corp. is a precious metals exploration and development company based in Toronto, Canada. Absolut strongly believes in an international best practices approach, and implements this on all its social and environmental decisions. Absolut has implemented a quality control program to ensure best practice and the company's consultants Ironbark Geoservices SRL is providing technical management to the project. Under the guidelines of the 43-101 National Instrument the required qualified person for the Pico Machay Gold Project is Mr. Dan Noone who is a member of the Australian Institute of Geoscientists.

This press release contains forward looking statements.

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