Continuum Announces Letter of Intent for Sale of Natividad Project

February 1, 2008: Vancouver, British Columbia:  Continuum Resources Ltd (TSXV: CNU) announces that it has entered into a Letter of Intent ("LOI") with Mr. Raul Diaz, Continuum's former General Manager in Mexico, for the sale of Continuum's 70% interest in the claims constituting the Natividad Mine (the "Natividad Property"), along with a further 100% of the surrounding Natividad properties wholly-owned by Continuum (collectively the "Surrounding Properties").  All of these properties will be vended into a private Mexican company ("Privco") to be formed by Mr. Diaz.  The key terms of the agreement are as follows:

i) On or before February 29, 2008, Privco shall enter into a definitive agreement to acquire Continuum's 70% interest in the Natividad Property and 100% of the Surrounding Properties.

ii) Privco shall grant Continuum a 1.4% net smelter royalty (NSR) on future production on the Natividad Property, provided however that Privco, at its sole discretion, may purchase such 1.4% NSR at any time upon payment to Continuum of USD$3,500,000.

iii) Continuum shall grant Privco the sole and exclusive right and option to earn a 100% undivided interest in the Surrounding Properties.  As consideration for this right, Privco must incur minimum exploration expenditures totaling USD$600,000 over three years.

iv) Upon completion of the minimum exploration requirements described above, Privco shall grant Continuum a 2% NSR on any future production on the Surrounding Properties.  Privco, at its sole discretion, may purchase this NSR at any time from Continuum for a payment of USD$5,000,000.

v) Privco, upon exercise of the option, shall issue to Continuum such number of common shares of Privco having a value equivalent to the total expenditures incurred by Continuum in acquiring and maintaining the Surrounding Properties, but excluding the Natividad Property.

Regarding the sale of the Natividad Property, Robert McMorran, CFO of Continuum, stated: "Over the past several weeks the Board has reviewed its options with respect to maximizing shareholder value, including a review of the status of all of the properties in the Company's mineral portfolio.  Notwithstanding the exploration potential at Natividad, it was evident to the Board that the Company's shareholders were best served at this time by the Company focusing its exploration efforts on other properties it holds in Oaxaca, Mexico.  Of immediate interest are the Tres-Hermanas and Lachiguiri properties which the Company intends to actively explore during 2008."

Continuum recently reactivated both the Tres-Hermanas and Lachiguiri projects (see news releases of September 17, 2007 and September 24, 2007) and exploration activities are ongoing.

Background

Continuum is currently exploring 7 separate gold-silver projects in the state of Oaxaca, comprising approximately 125,000 hectares.  Continuum is also a 24% joint venture partner with Fortuna Silver Mines Inc. (TSXV: FVI) on the San Jose silver project, on which drilling continues to expand on the resource estimate previously announced by the Company on March 12, 2007.

On behalf of the Board of Continuum Resources Ltd.

"Warren M. McIntyre"

Warren M. McIntyre, Corporate Secretary and Director

Renmark Financial Communications Inc.
Barry Mire : bmire@renmarkfinancial.com
Dan Symons : dsymons@renmarkfinancial.com
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