VANCOUVER, British Columbia, Nov. 23, 2009 (GLOBE NEWSWIRE) -- Mosquito Consolidated Gold Mines Limited (Mosquito) (TSX-V:MSQ) is pleased to report receipt of the completed National Instrument 43-101 technical report on its Idaho-based CUMO molybdenum-copper project and its filing with SEDAR (www.sedar.com).

The PEA was managed by Ausenco Minerals Canada Inc. (Ausenco), a Vancouver-based engineering firm with corporate headquarters in Brisbane, Australia. The Ausenco group of companies provides world-leading engineering, project management and operations solutions to global resource, energy and process infrastructure industries; and has a workforce in excess of 2,200 people in more than 26 offices across 13 countries.

As a result of detailed examination of the 43-101 report, Mosquito has decided to proceed to feasibility targeting an initial production rate of 125,000 short tons per day with an additional 50,000 short tons per day added at or after year 7. All future drilling, engineering, and environmental studies will be designed to outline the data and information required to produce a bankable feasibility study.

Based on a pre-tax financial model (earnings before interest, tax, depreciation and amortization) and using a long-term, base-metal price scenario, Ausenco's study showed the CUMO project having a Net Present Value (NPV) of US$16 Billion for a 150,000 short tons per day ore production rate and US$10 Billion for a 100,000 short tons per day ore production rate. Corresponding Internal Rates of Return (IRR) were 36% and 29% respectively -- significantly above the minimum 12.5% to 15% IRR typically required for United States-based projects to be considered for production -- and straight-line payback periods for start-up capital costs were 2.3 and 3.0 years respectively. These very substantial figures indicate that Mosquito should be developing CUMO toward an initial ore production rate of between 100,000 and 150,000 short tons per day.

The following two tables show highlight figures from Ausenco's CUMO-PEA, for 150,000 and 100,000 short tons of ore per day for the initial 40 years of mine life. All prices and values are in US$. Based on a pre-tax financial model and long-term base-metal prices of $16/lb molybdenum oxide, $2.10/lb copper, $12.00/ounce silver, $6.00/gram rhenium and $135/ton sulphuric acid, the results are as follows:

                     150,000 short tons per day
                     --------------------------

 Net Present Value ((NPV 5%)            $16 Billion dollars
 Internal Rate of Return                36 %
 Cost/lb:  Molybdenum oxide/ Copper     $3.9 / $0.5
 Start-up Capital Cost                  $2,800 Million dollars
 Payback Period (see Notes)             2.3 years
 Total Possible Mine life               113 years

                     100,000 short tons per day
                     --------------------------

 Net Present Value (NPV 5%)             $10 Billion dollars
 Internal Rate of Return                29 %
 Cost/lb:  Molybdenum oxide/ Copper     $4.3 / $0.6
 Start-up Capital Cost                  $2,200 Million dollars
 Payback Period (see Notes)             3.0 years
 Total Possible Mine life               169 years

Cost/lb: Molybdenum oxide/ Copper is the total operating cost per pound, assuming all by-products are credited against the costs of production of the reference metal.

Total Possible Mine life is the possible life of production based on production schedule from the pits. The economic analysis only studied the initial for 40 years. This is an estimate and is dependant on additional drilling to convert inferred resources to measured and indicated.

Three other price scenarios were undertaken to analyze the project's sensitivity to metal prices. These consisted of high, low and ten-year cyclical prices.

High Price

High metal prices are $28/lb molybdenum oxide, $3.50/lb copper, $15.00/ounce silver, $10.00/gram rhenium and $235/ton sulphuric acid.

 -----------------------------------------------------------------
                             100,000    150,000                   
 Pre-tax, 5% discount rate  short tpd  short tpd       Units      
 -------------------------  ---------  ---------  ----------------
 Net Present Value (NPV)       $22        $35       Billions US$  
 Internal Rate of Return       51%        61%            %        
 Payback Period                1.6        1.2          Years      
 -----------------------------------------------------------------

Cyclical Price

Cyclical metal prices consist of a range of prices between the low and the high in a ten-year cycle starting on a rising price trend and passing through the low every ten years. Prices are $7.50/lb to $28/lb molybdenum oxide, $1.50/lb to $3.50/lb copper, $9.00/ounce to $15.00/ounce silver, $2.50/gram to $10.00/gram rhenium and $85/ton to $235/ton sulphuric acid.

 -----------------------------------------------------------------
                             100,000    150,000                   
 Pre-tax, 5% discount rate  short tpd  short tpd       Units      
 -------------------------  ---------  ---------  ----------------
 Net Present Value (NPV)       $12        $21       Billions US$  
 Internal Rate of Return       39%        49%            %        
 Payback Period                1.9        1.5          years      
 -----------------------------------------------------------------

Low Price

Low metal prices are $7.50/lb molybdenum oxide, $1.50/lb copper, $9.00/ounce silver, $2.50/gram rhenium and $85/ton sulphuric acid.

 -----------------------------------------------------------------
                             100,000    150,000                   
 Pre-tax, 5% discount rate  short tpd  short tpd       Units      
 -------------------------  ---------  ---------  ----------------
 Net Present Value (NPV)      $1.1       $2.9       Billions US$  
 Internal Rate of Return        9%        12%            %        
 Payback Period                9.6        6.4          years      
 ------------------------------------------ ----------------------

Studies and reviews for the PEA were conducted by Ausenco and Vector Engineering Inc. (Vector), a member of the Ausenco group of companies. Based in Grass Valley, USA, Vector specializes in environmental and consulting services. Vector undertook a review of mine design, developed mine, waste stockpile and tailings storage facility (TSF) capital and operating-cost estimates to an accuracy of +/- 35%. Ausenco conducted the metallurgical test-work review, process-plant design, process-plant capital and operating-cost estimates to +/- 35% accuracy as well as the economic analysis.

Potential Opportunities

Mosquito personnel have identified several areas and opportunities that may provide significant costs savings and improved economics for the project, including the following:

 Mining
 -- Optimization of the pit designs and definition of a mineable
    reserve becomes available
 -- Optimization of waste and stockpile haulage methodology to
    reduce the amount of trucking involved.
 -- Optimization of the in-pit haulage through the utilization of
    trolley assisted programs, and/or in-pit crushing
 -- Detailed equipment costing to determine potential discounts to
    list price for all major components.

 Milling
 -- More metallurgical work to determine optimum grind size (the
    current assessment is based on the finest grind tested to date)
    and analyze recoveries of the various metals.
 -- Optimize reagents to reduce costs and improve metallurgy.
 -- Work on the potential for a tungsten recovery circuit is
    required (currently excluded)

 Tailings
 -- Detailed analysis of tailings storage facilities and design to
    reduce overall costs.

 Other
 -- Pre-strip waste material could be used for a potential
    hydroelectric power dam development, reducing mine capital cost
    and providing lower power costs to the project.
    Hydroelectric power can be developed, using non-fish bearing
    creeks that are in the area.

These and other areas will be examined in more detail as part of the next engineering phase.

Based on the excellent results of the Preliminary Economic Assessment of CUMO, Mosquito plans to complete the 2009 drilling and update the current mineral resource. At the same time, work will continue on the environmental baseline, engineering, and metallurgical work required to bring the project to feasibility.

Mosquito is currently negotiating with several major parties interested in funding the future development of the CUMO project.

Mr. Shaun M. Dykes, M.Sc. (Eng), P.Geo., Exploration Manager and Director of Mosquito is the designated qualified person for the CUMO Project, and prepared the technical information contained in this news release.

 On Behalf of the Board
 MOSQUITO CONSOLIDATED GOLD MINES LTD.

 Brian McClay
 President

About Mosquito Consolidated Gold Mines

Headquartered in Vancouver, Canada, Mosquito Consolidated Gold Mines Limited (www.mosquitogold.com) is a mining exploration and development company with a diverse portfolio of high-potential precious and base metals projects, located in low-political-risk environments in North America and Australia. The Company's primary focus is the development of its Idaho-based CUMO deposit, recognized as one of the largest molybdenum-copper-silver porphyry deposits in the world, and its Nevada-based Pine Tree porphyry copper-molybdenum-silver project.

THIS NEWS RELEASE WAS PREPARED BY MANAGEMENT WHO TAKES FULL RESPONSIBILITY FOR ITS CONTENTS. NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

This news release includes certain statements that express management's expectation or estimates of future performance and may be deemed "forward-looking statements". These forward-looking statements include plans, estimates, forecasts and statements as to management's expectations regarding the CUMO Project. These forward-looking statements involve assumptions, risks and uncertainties and actual results may vary materially. For these reasons shareholders should not place undue reliance on such forward-looking information.

United States residents are cautioned that some of the information that may be published by Mosquito may not be consistent with United States Securities and Exchange Commission disclosure rules and may be materially different from what the Company is permitted to disclose in the United States and therefore United States residents should not rely on such information.

 Notes:
 Net Present Value (NPV) is defined as the total present value of a time 
 series of cash flows. It is a standard method for using the time value of 
 money to appraise long-term projects. In the calculation each yearly cash 
 flow is discounted back to its present value using a discount rate.

 Internal Rate of Return (IRR) is a rate of return used in capital 
 budgeting to measure and compare the profitability of investments. It is 
 also called the discounted cash flow rate of return. For example, the 
 interest the bank pays is the rate of return on an investment. Minimum 
 rate of return for most mines in North America is around 12 to 15%; i.e. 
 earning 12 to 15% on every dollar invested.

 Payback Period is the period of time required for the return on an 
 investment to "repay" the sum of the original investment. In the PEA,
 the straight-line method is presented which does not take into account 
 the time value of money.

 Mineral Resources that are not mineral reserves do not have demonstrated 
 economic viability. Mineral resources can include mineral reserves.

 An Indicated Mineral Resource is that part of a mineral resource for 
 which quantity and grade can be estimated with a level of confidence 
 sufficient to allow the appropriate application of technical and economic 
 parameters, to support mine planning and evaluation of the economic 
 viability of the deposit.

 An Inferred Mineral Resource is that part of a mineral resource for which 
 quantity and grade can be estimated, on the basis of geological evidence 
 and limited sampling and reasonably assumed geological and grade 
 continuity.

 $RV cutoff used for the resource estimate is a recovered value calculated 
 using metal recoveries shown below.

 Copper equivalent (Cu. Equiv.) and Molybdenite equivalent (MoS2 Equiv.) 
 are based on the following metal prices(all in US$): Copper $1.50/lb, 
 Molybdenum Oxide ($15/lb), Silver $0.35/gram and Tungsten $0.22/gram.
 ($7.00 per lb)
 Other factors include 1% = 20 pounds; 1 ppm = 1 gm/T; 1000 ppb =1 ppm = 1 
 gm/T.

 Metallurgical recoveries used in the resource calculation are as follows 
 for each metal zones. Recoveries are slightly lower that those currently 
 reported by SGS in their recent metallurgical study.

           -------------------------------------------------
              Zone      Cu%     MoS2%     Ag %     W %
           -------------------------------------------------
              Oxide     60%      80%      70%      35%
           -------------------------------------------------
              CuAg      68%      85%      73%      35%
           -------------------------------------------------
              CuMo      87%      92%      78%      35%
           -------------------------------------------------
               Mo       80%      95%      55%      35%
           -------------------------------------------------

 Formulas (resource calculation):
 Recv for a metal is taken from the above table for each assay/block in a 
 particular zone and is value percentage/100
 $RV= ((Cu*20*$* recv)+((MoS2*20*(1.5/1.6681)*$(MoO3)* recv)+(Ag*$*
 recv)+(W*$* recv))
 Recovered Cu. Equiv. = $RV / ($(Copper) *20)
 Recovered MoS2. Equiv. = $RV / ((1.6681/1.5)* $(MoO3)*20)

 This Preliminary Assessment is preliminary in nature and includes the use 
 of Inferred Resources which do not have demonstrated economic viability 
 and are considered too speculative geologically to have economic 
 considerations applied to them that would enable them to be categorized 
 as mineral reserves. There is no certainty that the Preliminary 
 Assessment will be realized.

CONTACT:  Mosquito Consolidated Gold Mines Limited 
          604-689-7902
          Fax: 604-689-7816