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Saturday, June 16, 2007

Resignation of Ecuador's Energy and Mining Minister could prove positive for Corriente Resources

National Post, 16 June 2007

The resignation Thursday of Ecuador's energy and mines minister could be a positive development for Canadian mining companies with projects in Ecuador.

Albert Acosta resigned after deciding he will run for election to a new 130-member legislative body that his political ally, President Rafael Correa, hopes to win a majority in thus providing a counterweight to the country's Congress.

The news spurred on share prices of Canadian mining companies with projects in the country, including Aurelian Resources, whose shares have jumped 6% since Thursday and Corriente Resources, up as much as 12%.

According to Wellington West analyst Catherine Gignac, Corriente, who awaits government approvals for its Mirador project in Ecuador, could turn Mr. Acosta's resignation into a real opportunity.

"The Minister is known to oppose mine development," she said in a note to clients. "The replacement is expected to be pro-mining and could bring Corriente Resources back to develop Mirador."

Ms. Gignac has a "buy" rating on Corriente shares and a $7 price target.

David Pett

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