10/07/2005- Draws Down Second Tranche of Loan

[Franko10 ™]

Re: News Release - Friday, October 07, 2005
Morgain Minerals Draws Down Second Tranche of Loan
=========================================
Vancouver, BC, October 7, 2005 - Morgain Minerals Inc. (TSX-V: MGM)
announced today that it has drawn the second tranche from its
C$5,000,000 loan advanced from H. Morgan & Company in the amount of
C$2,500,000 (see news release dated March 29, 2005).

Morgain will use the second portion of the loan (C$2,500,000) to
complete the first 30,000 tonnes bulk heap leaching test and continue
with additional bulk mining and heap leach testing of up to 100,000
tonnes of ore at Morgain's Castillo Mine located in Durango, Mexico and
for general working capital purposes. Commercial production planning,
design and permitting will be initiated at the Castillo Mine.

The Castillo Mine is located in a very favourable area of Mexico with
excellent infrastructure and a good year-round climate. These features,
coupled with excellent mining conditions, should allow the production
cost per ounce of gold to fall into the medium to low range.

About Morgain Minerals Inc.
Morgain Minerals (MGM.V) is a junior mining company whose vision is to
acquire and develop a portfolio of profitable low-grade gold mines in
Mexico. The Company is currently focused on bringing its Castillo Mine
into production through a series of mining and heap leaching tests to
determine the best operating methods and machinery. Visit Morgain's
website at www.morgainminerals.com for further information.

For further information, please contact:
Chester F. Millar - Chairman and President
Telephone: [phone]

The TSX has neither approved nor disapproved of the information
contained herein.

===========================================
Copyright (c) 2005 MORGAIN MINERALS INC. (MGM) All rights reserved.
For more information visit our website at
www.morgainminerals.com/ or send mailto:[e-mail]
Message sent on Fri Oct 7, 2005 at 2:09:25 PM Pacific Time