2004 News

Release No. 103

Candente Resource Corp. (the Company) reports the following highlights from the First Quarter of 2004:

The Company confirms that its unaudited interim financial statements for the first quarter ended March 31, 2004 were filed on SEDAR on May 31, 2004 as required by applicable securities laws.

The following discussion and analysis is for the period ended March 31, 2004 compared with the period ended March 31, 2003. This information is current to May 28, 2004 and has not been reviewed by the Company's auditors.

Introduction

The discussion and analysis of the operating results and financial position of the Company should be read in conjunction with the Consolidated Financial Statements and related Notes (the "Financial Statements"), which have been prepared in accordance with Canadian generally accepted accounting principles (GAAP) (see Summary of Significant Accounting Policies and Note 1: Nature of Operations) in United States dollars. This discussion and analysis may contain forward-looking statements about the Company's future prospects, and the Company provides no assurance that actual results will meet management's expectations.

Results of Operations

The Company incurred a loss of $446,656 in 2004 ($0.01 per share) compared with a loss of $103,997 in 2003 ($0.00 per share). The difference of $342,552 arose primarily as a result of adopting the new stock-based compensation rules as required by the Canadian Institute of Chartered Accountants; an amount which accounted for $196,191 of the incurred loss, however this amount is a non-cash item. The Company also wrote off $2,246 in mineral property costs. These properties written-off were all located in Newfoundland. The other two prime components of incurred costs was in promotion and travel (increase of $19,158) and office and salary costs (increase of $24,384). There was a contribution against costs of $19,656 interest income. The increase in overhead was incurred due to the increase in activities of the Company made possible by the successful capital raising activities during the previous year and the resultant additional exploration conducted on the properties.

The operational effectiveness of the Company's activities in Peru has improved due to an increasingly favourable Canadian to U.S. dollar and Peruvian sole exchange rate. The Company maintains its own equipment, premises and staffing in Peru and as a result management believes that cost control is very good. The Company's properties are located in various climate zones in Peru and as a result the Company is always able to conduct activities on some of its properties.

The following is a summary of the key exploration projects the Company has been working on:

Alto Dorado/Toril

The Alto Dorado property is situated in Northern Peru in the Department of La Liberated, 20 km south of the town of Santiago de Chico. It is within the same belt of Tertiary-age volcanic rocks as the world-class Yanacocha gold deposit. During the past several months the Company has carried out geological mapping, geochemical sampling, geophysical surveys and overburden drilling on the property. Geophysical data is currently being compiled with the geological and geochemical data and several drill targets have been delineated. Diamond drilling on these targets is scheduled to begin at the end of May 2004. To March 31, 2004, the issuer company has spent approximately $552,974 U.S. on exploration and approximately $500,000 U.S. will be spent on the planned drilling.

Cañariaco

Cañariaco is located within the Western Cordillera of the Peruvian Andes. The Cañariaco property hosts porphyry copper-gold prospects. The exploration carried out to date consists of geological mapping, geochemical sampling (including a soil grid) and geophysical surveys. All this data is currently being compiled and drill targets are being delineated. Drilling is scheduled to commence in the third quarter of 2004. To March 31, 2004, the Company has spent approximately $246,002 U.S. and approximately $500,000 U.S. will be spent this year on exploration.

Staghorn

The Staghorn property is located in Southwestern Newfoundland, approximately 60 kilometres southeast of the seaport of Stephenville. Large tonnage gold potential with similarities to intrusion-hosted orogenic deposits in the Tien Shans in Central Asia (Muruntau and Kumtor: 175 and 19 Moz) has been recognized on the Staghorn Property. Similarities include host rocks, structural setting, alteration, mineralization and metal suites. During the Summer of 2003, the Company carried out exploration on the property which included an interpretation of a 1981 Airborne magnetic/EM Survey for structure, geology and magnetic anomalies; collection of 15 lake bottom sediment samples; 89 rock float, grab and channel samples (mostly from trenching); and geological mapping. In the first part of 2004, Induced Polarization (IP) and magnetics (geophysical) surveys were conducted. Further trenching and a drill program are planned for the remainder of 2004. The issuer has spent approximately $206,970 to date, and approximately $200,000 CDN will be spent this year on exploration.

Summary of Quarterly Results

As the Company is still in the exploration and development stage, variances in its quarterly losses are not affected by sales or production-related factors. Year over year increased costs are generally attributed to successful financing activities which result in the Company being able to conduct more exploration, which results in additional overhead costs to maintain. The loss in the first quarter of 2004 was primarily due to the recognizing of stock-based compensation of $196,191. Additional costs are incurred due to increasing office space to handle increased exploration activity.

Capital Resources and Liquidity

The Company's financial resources increased during the quarter with $190,399 raised by the issue of 990,500 shares on the exercise of option and warrants.

The Company has adequate financial resources to conduct its activities for the balance of the year and currently does not anticipate difficulties in raising additional funding if needed. The Company's outstanding stock options of 3,673,200 options of the total 4,006,534 options outstanding and warrants of 919,750 of the total of 2,373,917 warrants outstanding that are currently "in the money" and are potentially exercisable to generate $1,962,875 in additional funding.

There is however, no assurance that any future funding can be accomplished as it would be wholly dependent on the state of the capital markets for junior gold exploration companies. The Company does not anticipate the payment of dividends in the future.

Off-Balance Sheet Arrangements

The Company has no off-balance sheet arrangements.

Related Party Transactions

Details of these related party transactions, including the purpose and recorded amounts of the transactions are identified in Note 4 to the Financial Statements.

Changes in Accounting Policy

The Company adopted in 2003 the transitional provisions of Canadian Institute of Chartered Accountants' Handbook Section 3870 on stock-bases compensation on a prospective basis. The Company accounts for the derived value of stock-based compensation to all employees and consultants.

Financial and Other Instruments

The Company's financial assets and liabilities consist of cash, short-term investments, receivables, accounts payable and accrued liabilities, some of which are denominated either in Canadian dollars, U.S. dollars or Peruvian soles. These accounts are recorded at their fair market value. The Company is at risk for a financial gain or loss as a result of foreign exchange movements against the United States dollar. In the three months ended March 31, 2004, the Company recorded a loss of $38,330 while in 2002 a loss of $3,541 was recorded for foreign exchange. The loss on the loan was partially offset by the Company minimizing its foreign exchange risk by maintaining low account balances in U.S. dollars and Peruvian soles, to the extent possible. The Company does not have major commitments to acquire assets in foreign currencies at this time, but does expect that certain significant future expenditures will be denominated in soles or U.S. dollars.

The Company has placed its cash and cash equivalents in liquid bank deposits which provide a variable rate of interest.

Outstanding Share Data

The Company has one class of common shares: as at May 14, 2004, there were 36,052,704 common shares outstanding.

The Company has a stock option plan: As at May 14, 2004, there were 4,006,534 stock options outstanding, all of which have vested.

The Company has outstanding as at May 14, 2004 of 1,759,167 warrants.

Risk and Uncertainties

Except for historical information contained in this discussion and analysis, disclosure statements contained herein are forward-looking, which statements are subject to risks and uncertainties, which could cause actual results to differ materially from those in such forward-looking statements.

The Company is a mineral exploration and development company and is exposed to a number of risks and uncertainties that are common to other companies in the same business; some of these risks have been discussed elsewhere in this report.

The Company's financial success is subject to general market conditions which affect mining and exploration companies. The value of the Company's mineral resources and future operating profit and loss is affected by fluctuations in gold prices, over which the Company has no control, although it may choose to hedge some of its future production. The cost of exploration and future capital and operating costs are affected by foreign exchange rates for the U.S. dollar and Peruvian sole. The Company can mitigate the effects of these rate fluctuations, to some extent, through forward purchases. The Company's ability to hedge future foreign exchange rates is affected by its creditworthiness. Because of its limited operating record and history of losses, it may not be able to hedge future risk to the extent it feels is warranted. The Company also competes with other mining companies which are larger and have more economic resources to acquire prospective exploration properties or producing mines.

The Company also faces certain risks and uncertainties specific to its circumstances. The Company's ability to obtain financing to explore for mineral deposits and to continue and complete the development of those properties it has classified as assets is not assured; nor is there assurance that the expenditure of funds will result in the discover of an economic mineral deposit. The Company has not completed a feasibility study on any of its deposits to determine if it hosts a mineral resource that can be economically developed and profitably mined. While the Company has used its best efforts to endure title to all its properties and secured access to surface rights, these titles or rights may be disputed.

Candente is a well-funded mineral exploration company focused on the acquisition and exploration of world-class gold and copper projects. Management has a strong geological/technical focus and a track record of discovering world-class mineral deposits. Candente has a policy of ensuring that its exploration and development activities are beneficial to the local communities. For more information visit www.candente.com, call us at (604) 689-1957, toll free 1-877-689-1964 or e-mail to info@candente.com.

ON BEHALF OF THE BOARD OF DIRECTORS

"Joanne C. Freeze"
Joanne C. Freeze, P.Geo., President & CEO
CANDENTE RESOURCE CORP.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The company relies upon litigation protection for forward-looking statements.