Romarco Announces Second Quarter Results

ROMARCO MINERALS INC. ("TSXV: R" - the "Company") reports its second quarter financial results. All figures are in Canadian dollars unless otherwise noted. Complete quarterly results are available on SEDAR and on the Company's website at www.romarco.com.

Romarco's net income for the first six months of 2006 is due to the break fees received from Western Goldfields upon the mutually agreed to termination of the proposed merger. The receipt of the $1.4 million in the first quarter of 2006 for fees offset the overhead costs incurred by Romarco as it oversees exploration at its projects and evaluates precious metals properties for acquisition. The exploration and development costs incurred at the Company's projects have been capitalized to mineral property interests.

The Company had a net loss of $656,748 for the second quarter of 2006 compared to a net loss of $709,618 for the second quarter of 2005. Higher interest income, together with lower merger and financing fees amortization costs were partially offset by higher salary costs and foreign exchange translation differences in the second quarter of 2006 resulting in a lower net loss as compared to the second quarter of 2005.

The Company had a net income $377,923 for the six months ended June 30, 2006 versus a loss of $1,016,209 for the six months ended June 30, 2005.

Salaries increased from 2005 due to increased staffing levels. Consulting fees expense also increased as the Company increased its use of outside services to evaluate potential mineral property acquisitions following the termination of the proposed merger. Attendance at industry trade shows was less in the first six months of 2006 than in the first six months of 2005, helping to lower shareholder relations expenses as well as travel expenses.

Interest income earned in the first quarter of 2006 is higher than in the first quarter of 2005 due to increased cash levels and the interest earned on the advances made to Western Goldfields. In February 2006, Romarco received US $1.953 million as payment of these advances, including accrued interest, as well as the merger break fees. The strengthening of the Canadian dollar versus the US dollar from March 31, 2006 to June 30, 2006 resulted in the foreign exchange loss recognized in the second quarter of 2006 as the majority of the Company's funds were held in US$ during the second quarter.

In February 2006, the Company and Western Goldfields terminated the definitive merger agreement. In consideration for agreeing to such termination, Western Goldfields repaid all outstanding loans and accrued interest of $728,257 and paid the Company $1,407,404 for break fees and expense compensation. The Company continued to incur merger costs in the early part of second quarter of 2006 but does not expect to incur any material amounts in the remainder of 2006.

During the second quarter of 2006, Romarco spent $126,568 for its mineral property interests while in the second quarter of 2005, the Company spent $205,749 for its mineral property interests. During the first six months of 2006, Romarco spent $415,744 and issued 300,000 common shares valued at $48,000 for its mineral property interests while in the first six months of 2005, the Company spent $302,018 and issued 300,000 common shares valued at $66,000 for its mineral property interests.

Romarco began the third quarter of 2006 with $1,622,926 in cash and no debt as compared to $930,438 at December 31, 2005. Drill programs at four of Romarco's properties are planned for the remainder of 2006: Buckskin-National, Pine Grove (subject to permitting and drill rig availability) and Roberts Mountain in Nevada; and the Pinos Gold District in Mexico.

Romarco announced its intention to raise approximately $8 million by means of a private placement of its shares in the third quarter of 2006. The proceeds from this private placement will be used to fund the exploration and development work on Romarco's Pinos Gold District in Mexico, drilling at Romarco's Nevada projects, holding costs relating to Romarco's mineral properties and for general working capital purposes. After completing the private placement, Romarco believes it will have sufficient resources in order to carry out its planned exploration programs and meet its contractual obligations for the remainder of 2006 and 2007.

For further information, please contact Diane Garrett, President and C.E.O. at (830) 634-7489 or by e-mail at dgarrett@romarco.com or Mr. Ralf Langner, C.F.O. at (604) 688-9271 or by e-mail at rlangner@romarco.com  

ON BEHALF OF ROMARCO MINERALS INC.

Diane R. Garrett
President and C.E.O.