Canadian Venture Exchange Inc.

Symbol MLM

Millstream Mines Ltd.

4 King St. Suite 1320††††††††††† Toronto, Ontario, M5H 1B6††††† Tel: (416) 368-9595

Fax: (416) 368-6827

38,932,043 SHARES ISSUED

 

 

 

FOR IMMEDIATE RELEASE

Date: Aug. 5, 2004

Aug. 4, 2004 Close: $0.07

 

MILLSTREAM ADDS TO AIRPORT PROPERTY LAND POSITION

 

Toronto, Ontario- Millstream Mines Ltd. (MLM-TSX-V) wishes to announce it has now completed a purchase agreement initiated on August 4, 2003 with Mr. T. Loney for a 100% undivided interest in 18 staked mining claims, consisting of 127 mining claim units in the Falconbridge and Street Townships, Sudbury Mining District, Northern Ontario, Canada.

 

The 127 mining claim units abut the east boundary of Millstreamís Airport Property (47 mining claim units), located in Falconbridge Township, forming a combined large contiguous block of 174 mining claim units.

 

Millstreamís purchase price is $30,000 cash and 600,000 common voting shares equally divided over 3 payment due dates of September 4, 2004, September 4, 2005, and July 5, 2006. T. Loney retains a 2% Net Smelter Return (NSR) royalty on all production from the 127 claim units for which Millstream has the first right of refusal and the right to purchase half (50%) at a fixed price of $1,000,000 at any time prior to the 4th month after commercial production has commenced.

 

Millstream with its 50:50 joint venture partner, Crowflight Minerals Inc., since August, 2003 have expended $400,000+ in exploration activities on the Airport Property, consisting primarily of advanced geophysical surveys and about 1000 m of diamond drilling. An airborne Megatem II Electromagnetic Survey and a deep penetrating (500 to 600m) I.P. Resistivity/ Chargeability Survey were carried out resulting in identifying favourable geophysical targets for drill testing.

 

Geological mapping indicates that favourable horizons and structures continue eastward from the Airport Property into the newly acquired claims, expanding the exploration potential of the larger land mass.

There is no finderís fee to be paid and the transaction for the Loney claims is at arms length to the issuer with the agreement being submitted for approval to the TSX-Venture Exchange.

Millstream, further wishes to announce and remind the interested public of its web site location,

WWW.MILLSTREAMMINES.COM.

The principle objective of Millstream Mines Ltd. is to enhance and develop know mineral properties to production potential.

 

WARNING: The company relies upon litigation protection for "forward-looking" statements.

 

For further information contact:

 

 

Mr. Ernest Harrison, EM, CEO†††††† Mr. Marty Martinello, B.A., V.P.

Phone: 705-474-7282

Fax: 705-474-5491

 

Mr. Robert Chase, B.A., CFO

 

Phone:416-368-9595

Fax:416-368-6827

 

Email: info@millstreammines.com Web:www.millstreammines.com

 

 

No regulatory authority or similar body approved nor disapproved the information contained herein.