June 27, 2006 at 08:30 AM EDT
Minefinders Corporation Ltd.: Resource Expansion Drilling at Dolores Cuts 104 Metres Averaging 2.92 gpt Gold and 52.9 gpt Silver

Minefinders Corporation Ltd. (the "Company") (TSX: MFL)(AMEX: MFN) reports that exploration drilling at its development-stage Dolores gold/silver project in Chihuahua, Mexico continues to encounter wide, bulk-minable intercepts surrounding narrower, high-grade feeder zones, beyond the limits of the current feasibility-designed open-pit.

The drilling is part of an ongoing, comprehensive resource expansion program at Dolores. The latest results are from holes marginal to the planned Dolores open-pit mine, designed to test the potential expansion of the pit and future underground minable mineralization.

Drill holes D06-436, D06-437, D06-443, and D06-449 are typical of mineralization encountered within the mineralized south breccia pipe with multiple intercepts occurring over a wide area. Significant intersections beyond the current mine plan, include:

- D06-443 - 104 metres grading 2.92 grams per tonne ("gpt") gold and 52.9 gpt silver or 3.81 gpt gold equivalent(i) ("Aueq"), including 25 metres grading 6.42 gpt gold and 117.5 gpt silver. This hole also cut 1 metre assaying 17.69 gpt gold and 2095.5 gpt silver. Intercepts occurring between 352 to 530 metres down hole in D06-443 are located 20 to 40 metres west of the currently designed pit wall with the deeper intercepts occurring from 34 metres to 110 metres below the planned pit bottom.

- D06-449 - 81 metres grading 3.12 gpt gold and 39.6 gpt silver, with 6 metres assaying 19.62 gpt gold and 294.1 gpt silver extending high-grade mineralization from 50 to 120 metres below the planned pit bottom.

In addition, drill hole D06-430, previously reported on January 23, 2006, extended high-grade south breccia pipe mineralization (16 metres averaging 29.8 g/t gold) 60 metres below, and 25 metres south, of the present pit design.

Also included among the new results, drill holes D06-435, D06-437, D06-441 and D06-445 are north of the Central Dome and 500 to 1,000 metres north of the south breccia pipe. Drill holes D06-438, 439, and 440 were engineering holes for the reservoir site. Holes D06-446, 447 and 448 were condemnation holes in the leach pad area.


Table 1 - Recent Significant Drill Results -
2006 Dolores Exploration Program
---------------------------------------------------------------------
                                                           Intercept
                          Width                      Aueq  extends
DDH Section     Intercept  (met- Width    Au     Ag    (i) mineral-
No. (metres)      (metres)  res)  feet  (g/t)  (g/t) (g/t) ization:
---------------------------------------------------------------------
D06-   2775     84.0-98.0  14.0   45.9  .651   41.4  1.34
 430
---------------------------------------------------------------------
              282.0-432.0 150.0  492.2  3.62    8.9  3.76  25 m south
                                                           of pit
---------------------------------------------------------------------
         Inc. 357.0-373.0  16.0   52.5  29.8   14.7 30.10  60m below
                                                           pit
---------------------------------------------------------------------

---------------------------------------------------------------------
D06-   1875    79.0-179.0 100.0  328.1  1.07   17.6  1.36
 434
---------------------------------------------------------------------
         Inc. 145.0-151.0   6.0   19.7  3.32   22.3  3.69
---------------------------------------------------------------------
         and  159.0-160.5   1.5   4.92  4.46  103.0  6.17
---------------------------------------------------------------------
         and  169.0-173.0   4.0   13.1  6.93   53.5  7.82
---------------------------------------------------------------------

---------------------------------------------------------------------
D06-   1875    38.0-136.0  98.0  321.5   .80   27.4  1.26  Infill
 435                                                       hole
---------------------------------------------------------------------
         Inc.   66.0-89.0  23.0   75.5  1.56   47.5  2.35  East edge
                                                           of pit
---------------------------------------------------------------------
              173.0-215.0  42.0  137.8   .67   34.3  1.25
---------------------------------------------------------------------
         Inc. 199.0-205.0   6.0   19.7  2.17  176.9  5.11
---------------------------------------------------------------------

---------------------------------------------------------------------
D06-   2650   137.0-172.0  35.0  112.4   .46   37.3  1.08
 436
---------------------------------------------------------------------
         Inc. 143.0-149.0   6.0   19.7  1.60  100.7  3.28
---------------------------------------------------------------------
              288.0-411.0 123.0  403.6  1.03   23.0  1.41  Breccia
                                                           pipe
---------------------------------------------------------------------
         Inc. 338.0-340.0   2.0    6.6  5.73   28.0  6.19
---------------------------------------------------------------------
         Inc. 363.0-408.0  45.0  147.6  1.86   22.0  2.22  Below pit
---------------------------------------------------------------------
         with 382.0-389.0   7.0   23.0  3.90   22.0  4.27
---------------------------------------------------------------------
         with 401.0-407.0   6.0   19.7  3.52   30.9  4.03
---------------------------------------------------------------------

---------------------------------------------------------------------
D06-   1825     25.0-76.0  51.0  167.3   .79   40.3  1.46  Infill
 437                                                       hole
---------------------------------------------------------------------
                94.0-96.0   2.0    6.6  3.98  127.0  6.09
---------------------------------------------------------------------
              122.0-202.0  80.0  262.5  1.01   15.7  1.27  East edge
                                                           of pit &
                                                           outside of
                                                           pit
---------------------------------------------------------------------
         Inc. 172.0-196.0  24.0   78.8  2.10   34.3  2.67
---------------------------------------------------------------------
         with 174.0-176.0   2.0    6.6  8.63    6.5  8.74
---------------------------------------------------------------------

---------------------------------------------------------------------
D06-   2100   102.0-106.0   4.0   13.1   .59   56.5  1.53
 441
---------------------------------------------------------------------
              126.0-180.0  54.0  177.2   .56   35.1  1.14  East edge
                                                           of pit
---------------------------------------------------------------------
         Inc. 154.0-164.0  10.0   32.8  1.15   80.6  2.49
---------------------------------------------------------------------
         Inc. 176.0-180.0   4.0   13.1  1.63  103.5  3.35
---------------------------------------------------------------------

---------------------------------------------------------------------
D06-   2600   250.0-275.0  25.0   82.0  1.28   80.6  2.63  West
 443                                                       structure
---------------------------------------------------------------------
         Inc. 268.0-275.0   7.0  22.97  3.73  111.4  5.59
---------------------------------------------------------------------
              352.0-353.0   1.0    3.3 17.69 2095.5 52.62  Outside
                                                           pit wall
---------------------------------------------------------------------
              388.0-390.0   2.0    6.6  7.27 1104.5 25.68
---------------------------------------------------------------------
              426.0-530.0 104.0  341.2  2.92   52.9  3.81  Below pit
---------------------------------------------------------------------
         Inc. 460.0-485.0  25.0   82.0  6.42  117.5  8.38
---------------------------------------------------------------------
         Inc. 501.0-522.0  21.0   68.9  3.70   29.6  4.20
---------------------------------------------------------------------
         with 514.0-519.0   5.0   16.4  6.98   31.4  7.50
---------------------------------------------------------------------

---------------------------------------------------------------------
D06-   2200     79.0-81.0   2.0    6.6  0.06  650.0  10.9  East edge
 445                                                       of pit
---------------------------------------------------------------------
                83.0-85.0   2.0    6.6  0.31  287.0  5.09
---------------------------------------------------------------------
                91.0-99.0   8.0   26.2  0.47  138.0  2.77
---------------------------------------------------------------------
              105.0-111.0   6.0   19.7  0.47   48.4  1.26
---------------------------------------------------------------------
              138.0-153.0  15.0   49.2  0.22   47.9  1.01
---------------------------------------------------------------------

---------------------------------------------------------------------
D06-   2600   242.0-279.0  37.0  121.4  0.37   52.1  1.24
 449
---------------------------------------------------------------------
         Inc. 259.0-264.0   5.0   16.4  0.92  144.2  3.32
---------------------------------------------------------------------
              277.0-279.0   2.0    6.6  2.81  105.5  4.56
---------------------------------------------------------------------
              446.0-527.0  81.0  265.8  3.12   39.6  3.78  50-120
                                                           metres
                                                           below pit
                                                           bottom
---------------------------------------------------------------------
         Inc. 446.0-452.0   6.0   19.7 19.62  294.1 24.52
---------------------------------------------------------------------
         and  483.0-492.0   9.0   29.5  6.24   43.6  6.97
---------------------------------------------------------------------
         and  496.0-498.0   2.0    6.6  5.38    9.8  5.54
---------------------------------------------------------------------
         and  502.0-504.0   2.0    6.6  7.49   15.6  7.75
---------------------------------------------------------------------
(i) Gold equivalent grade based on 60:1, silver:gold ratio, without
    reference to recovery. Drill intercepts are core intervals and
    true thickness has not been determined.

Exploration drilling continues with three drill rigs currently on the property. Additional deep drilling is targeted to extend high-grade mineralization 100 to 150 meters beyond the deepest hole completed to date. Assay results are pending for holes D06-450 through D06-460.

In total, 70 additional core and reverse-circulation drill holes have now been completed on the property over the past year, for condemnation, engineering, and water well test work.

Dolores Resources and Reserves

The Company is presently assessing the impact on the Dolores reserves of the increase in the resource base that was reported in its news release dated April 25, 2006. The impact on the Dolores reserve base of the results of the current drilling will be assessed as engineering studies progress.

As shown in Table 2, at present, the total measured and indicated resources at Dolores (which include the proven and probable reserves currently being developed at the Dolores mine, shown in Table 3) are estimated at 3.06 million ounces of gold and 149 million ounces of silver, contained in 118.4 million tonnes (as reported on April 25, 2006).


Table 2 - Dolores Measured, Indicated Resources
--------------------------------------------------------------------
                                                                Gold
                                                          Equivalent
            Tonnes   Gold  Silver       Gold      Silver         (ii)
Category     (000s)  (g/t)   (g/t)   (ounces)    (ounces)    (ounces)
--------------------------------------------------------------------
Measured    61,660   0.86    42.1  1,702,000  83,361,000   3,025,200
--------------------------------------------------------------------
Indicated   56,750   0.75    35.9  1,360,000  65,479,000   2,399,300
--------------------------------------------------------------------
M&I Total  118,410   0.80    39.1  3,062,000 148,840,000   5,425,500
--------------------------------------------------------------------
(ii) Gold Equivalent ounces calculated using 63:1, silver to gold,
     ratio ($475 gold and $7.50 silver price).

An additional 667,000 ounces of gold and 27.7 million ounces of silver, in 33.8 million tonnes (at an average grade of .61 gpt gold and 25.5 gpt silver), are classified as inferred resources.


Table 3 - Dolores Proven and Probable Reserves
--------------------------------------------------------------------
                                                                Gold
                                                          Equivalent
            Tonnes   Gold  Silver       Gold      Silver         (ii)
Category     (000s)  (g/t)   (g/t)   (ounces)    (ounces)    (ounces)
--------------------------------------------------------------------
Proven      43,678   0.88   45.44  1,235,738  63,809,015   2,248,580
--------------------------------------------------------------------
Probable    28,795   0.78   42.96    722,092  39,770,617   1,353,372
--------------------------------------------------------------------
Proven
 & Probable 72,473  0.839   44.46  1,957,830 103,579,632   3,601,952
--------------------------------------------------------------------
As reported February 27, 2006. Some numbers may not match due to
rounding.
(ii) Gold Equivalent ounces based on 63:1, silver to gold, ratio.

Dolores Mine Development Update

Development of the Dolores mine continues with construction started on the man camp and temporary office complex. Earth works are expected to start shortly in the leach pad and crusher areas with the finalization of construction contracts. Down payments have been made on all critical mine components, including crushers and mining equipment, to maintain delivery dates. Several pieces of ancillary equipment have been purchased and will be imported as soon as storage area is completed. Further updates on mine construction will be provided, as milestones are met.

Quality Control and Assurance

All analyses reported are fire assay analyses for gold and multi-acid digestion with AA analyses or fire assay analyses for silver, and completed by either Chemex Labs of Vancouver, Canada, or Inspectorate Labs of Sparks, Nevada. Samples from these intervals were comprised of HQ or NQ core all representatively split prior to analysis and transported by the labs to sample preparatory facilities in Hermosillo, Mexico (Chemex) or Durango, Mexico (Inspectorate). Mark Bailey, MSc., P.Geo. is the "qualified person" with overall responsibility for the Dolores Project and is responsible for the contents of this news release.

MINEFINDERS CORPORATION LTD.

Mark H. Bailey, President and Chief Executive Officer

Safe Harbor Statement under the United States Private Securities Litigation Act of 1995: Statements in this release that are forward-looking, including statements relating to the size, and potential growth in size, of the Company's mineral reserves and resources, the economic feasibility of, and commencement of mine construction and mining operations at, the Company's Dolores Project and the timing of the further exploration and development of the Company's mineral projects, are subject to various risks and uncertainties concerning the specific factors identified above and in the Company's periodic filings with the Ontario Securities Commission and the U.S. Securities Exchange Commission ("SEC"). Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not intend to update this information and disclaims any legal liability to the contrary.

Cautionary Note to U.S. Investors: The SEC permits mining companies to disclose only those mineral deposits that can be extracted or produced economically in their filings with the SEC. This news release uses the term "inferred resource" that the SEC guidelines prohibit from inclusion in filings with the SEC.


Contacts:
Minefinders Corporation Ltd.
Mark H. Bailey
President and Chief Executive Officer
(866) 687-6263 or (604) 687-6263
(604) 687-6267 (FAX)
www.minefinders.com

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