Continuum and Fortuna drill 25.1m averaging 10.9 g/t Au + 588 g/t Ag at San Jose

July 16, 2007: Continuum Resources Ltd. (CNU :TSX-V) is pleased to announce additional drill results from the 2007 drill program at the San Jose silver-gold deposit located in Oaxaca, Mexico.  San Jose is being explored and developed under a joint venture between Continuum Resources Ltd (24%) and Fortuna Silver Mines Inc. (76%).  Analytical results have been received and verified for thirteen drill holes located in the southern and central portions of the Trinidad deposit.  Highlights of the current drilling include:

• Hole SJO-060 averaging 10.9 g/t Au + 588 g/t Ag (1141 g/t Ag Eq) over 25.1m. 
  
  
• Hole SJO-057 averaging 6.1g/t Au + 588 g/t Ag (897 g/t Ag Eq) over 11.6m.
  
  
• Hole SJO-055 averaging 11.9g/t Au + 1151 g/t Ag (1756 g/t Ag Eq) over 2.5m.
  
  
• Hole SJO-063 averaging 4.4g/t Au + 1224 g/t Ag (1450 g/t Ag Eq) over 2.6m.
  
  
• Hole SJO-065 averaging 1.4g/t Au + 183 g/t Ag (256 g/t Ag Eq) over 20.9m.

Assay results from the thirteen drill holes are summarized below. Length-weighted assay averages have been calculated for the mineralized intervals using a lower cut-off of 100 g/t Ag-equivalent.  True widths are estimated at between 70% to 90% of the drilled intervals.

Drill holes SJO-055, -057, -058, -059, -060, -061 and -062 extend mineralization beyond the limits of the resource estimate reported in Continuum and Fortuna's March 12, 2007 release.  Holes SJO-056, -063, -064, -066 and -067 are infill drill holes.  Drill hole SJO-065 encountered mineralization in the Bonanza vein approximately 380m below the surface with the mineralization remaining open to depth.  An updated long section showing the location of the drill holes is in preparation and will be posted shortly on Continuum's website at www.continuumresources.com.

The San Jose deposit is a low sulfidation epithermal system located within the Taviche Mining District in southern Oaxaca and is characterized by multiphase, quartz-carbonate-sulfide stockwork veining and mineralized hydrothermal breccias within a sequence of Tertiary andesitic volcanic and volcaniclastic rocks.  Using a cut-off grade of 150 g/t Ag equivalent, the NI43-101 compliant indicated and inferred mineral resources for the Trinidad zone at San Jose are estimated at (see Continuum News Release dated Mar. 12, 2007):                              

Indicated Mineral Resources: 1.47 million tonnes grading 262.6 g/t Ag + 2.19 g/t Au containing 17.7 million Ag equivalent oz

Inferred Mineral Resources: 3.9 million tonnes grading 260.6 g/t Ag + 2.57 g/t Au containing 49.1 million Ag equivalent oz.

 
The Continuum-Fortuna joint venture controls mining concessions covering approximately 47,440 hectares in the Taviche Mining District.  A 25,000 meter drill program is underway at the Trinidad and San Ignacio zones with 3 diamond drill rigs. Concurrently, surface geochemical and reconnaissance programs are being conducted throughout the district to identify and evaluate new target areas. 

Quality Control & Quality Assurance

For the current drill program, following detailed geological and geotechnical logging, drill core samples are split on-site by diamond saw. One-half of the core is submitted to the ALS Chemex sample preparation facility in Guadalajara, Mexico.  The remaining half core is retained on-site for verification and reference purposes. Following preparation, sample pulps are sent to ALS Chemex in Vancouver where they are assayed for gold and silver by standard fire assay methods using a gravimetric finish.  Multi-element analyses are also completed for each sample by ICP methods.  The QA-QC program at San Jose includes the blind insertion of certified reference standards for silver and gold at a frequency of approximately 1 per 20 normal samples and the insertion of assay blanks at a frequency of approximately 1 per 20 normal samples.  All sample results reported in this news release correspond to HQ- or NQ-diameter core.  Further drill resul ts will be released as analytical data are received and validated.

Qualified Person

Mr. Gregory Smith, P.Geo., is Fortuna Silver Mines' Qualified Person as defined by National Instrument 43-101 and is responsible for the accuracy of this news release.
 
About Continuum Resources
    
Continuum is actively exploring 11 separate gold-silver projects in the state of Oaxaca, where Continuum has acquired 75,000 hectares covering the entire Natividad district,including the Natividad Mine that historically-produced 1,000,000 ounces of Gold and 23,000,000 ounces of Silver.

ON BEHALF OF THE BOARD

"Warren McIntyre"

Warren McIntyre, Director
Continuum Resources Ltd.

Tel: 604-629-0000
Symbol: TSX-V:CNU

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