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UNITED STATES ~~SECURITIES AND EXCHANGE COMMISSION~~

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER PURSUANT TO RULE 13a-16 AND 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the ~~Month~~Period ofNovember ~~______________________________________________________________________June~~ 2004 File No. 001-32267

~~DESERT~~Desert ~~SUN~~Sun ~~MINING~~Mining ~~CORP~~Corp.

(Name of Registrant)

65 Queen Street West, Suite 810, POP.O. Box 67, Toronto , Ontario, ~~Canada~~ CANADA M5H 2M5

~~Executive~~(Address ~~Offices~~of principal executive offices)

1. ~~Press Releases: 6/25/2004; 7/06/2004; 7/13/2004; 7/26/2004; 7/27/2004;~~

~~8/10/2004;~~News ~~9/09/2004;~~Release ~~9/13/2004; 9/15/2004;~~dated ~~9/21/~~November 12, 2004;

~~9/27/2004; 9/29/2004; 9/30/2004; 10/01/2004~~2.

~~2. Unaudited~~News ~~Interim~~Release ~~Financial~~dated ~~Statements:~~November ~~Ten~~15, ~~Months Ended 6/30/~~2004

~~Form 52-109FT2: CEO Certification of Interim Filings During Transition Period~~3.

~~Form~~News ~~52-109FT2:~~Release ~~CFO~~dated ~~Certification~~November of17, ~~Interim Filings During Transition Period~~2004

~~Ten Months Interim Financial Statements: Management’s Discussion and Analysis~~4.

~~Indicate~~News byRelease ~~check~~dated ~~mark~~November ~~whether~~17, ~~the~~2004 ~~Registrant files annual reports under cover of Form 20-F or Form 40-F. Form 20-F xxx Form 40-F ___~~(2)

Interim Financial Statements (unaudited) for the period ended September 30, 2004

Management Discussion and Analysis

Certification of CEO

Certification of CFO

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F...XXX...... Form 40-F.........

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____

~~Indicate~~Note: byRegulation ~~check~~S-T ~~mark~~Rule ~~whether~~101(b)(7) only permits the ~~Registrant~~submission byin ~~furnishing~~paper of a Form 6-K if submitted to furnish a report or other document that the ~~information~~registrant ~~contained~~foreign inprivate ~~this~~issuer ~~Form~~must isfurnish ~~also~~and ~~thereby~~make ~~furnishing~~public under the ~~information~~laws toof the ~~Commission~~jurisdiction ~~pursuant~~in towhich ~~Rule~~the ~~12g3-2~~registrant is incorporated, domiciled or legally organized (bthe registrant's "home country"), or under ~~Securities~~the ~~Exchange~~rules ~~Act~~of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of ~~1934~~a Form 6-K submission or other Commission filing on EDGAR.

~~Yes~~Indicate ~~___ No~~by ~~xxx~~check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

~~SEC~~Yes ~~1815~~..... ~~(11-2002) Potential~~No ~~persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number~~.XXX.

~~DESERT~~If ~~SUN~~"Yes" ~~MINING~~is ~~CORP.~~marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________

65SEC ~~Queen~~1815 ~~Street West, Suite 810, PO Box 67, Toronto, Ontario, M5H 2M5~~(11-2002)

~~Tel:~~Potential ~~416-861-0341 Fax:~~persons ~~416-861-8165~~who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.

~~www.desertsunmining.com~~1

Press Release 20 – 2004

DESERT SUN MINING CORP.
65 Queen Street West, Suite 810, PO Box 67, Toronto, Ontario, M5H 2M5 Tel: 416-861-0341 Fax: 416-861-8165
For Further Information Contact: John Carlesso Kam Gill 416-861-5881 416-861-0341 1-866-477-0077 1-866-477-0077		Tel: 416-861-0341 Fax: 416-861-8165 www.desertsunmining.com Press Release 35 – 2004 TORONTO STOCK EXCHANGE SYMBOL: DSM
November 12, 2004

~~For~~DESERT ~~Further~~SUN ~~Information~~ANNOUNCES ~~Contact:~~RESULTS FOR THE THIRTEEN MONTHS ENDED SEPTEMBER 30, 2004

~~John~~DESERT ~~Carlesso~~SUN MINING CORP. (TSX: DSM; AMEX: DEZ) continues its steady advance towards production in early 2005, when it expects to be producing at a steady state rate of 103,000 ounces per annum by the end of the second calendar quarter. Desert Sun has changed its financial year-end from August 31 to December 31, with a transition year of 16-months ending December 31, 2004 and a fourth interim period covering the three and thirteen months ending September 30, 2004.

~~Vice~~The ~~President~~dewatering of the Jacobina Mine, ~~Corporate~~removal ~~Development~~of the previous track haulage system and slashing of the main haulage drifts to accommodate the large mechanized equipment have been completed, and underground services are being installed. Ramp development has commenced and is ahead of schedule. The Company has ordered mobile equipment from Atlas Copco, who is providing financing over a period of 24-months. Atlas Copco is establishing a parts warehouse at the Jacobina Mine and has entered into a Full Service Agreement with the Company. To ensure that Desert Sun meets its production timetable, bridge units have arrived on site and are operating well. The Jacobina Mine offices, mechanical shop and staff facilities have been completed and tailings lines are being installed to the tailings dam area. Construction of the foundations for the four new leach tanks and the crusher has started and the installation of power and instrumentation is expected to be substantially completed by the end of November. A “Commissioning Team” has been established to ensure that mill commissioning proceeds smoothly.

~~416~~In July 2004 the Company received the final operating and environmental permits required to re-~~861-5881~~start mining operations at the Jacobina Mine. In addition to the License of Operation for the mine, Desert Sun has been issued licenses for water usage and water discharge, permits for the purchase and use of cyanide in the metallurgical process and permits for buying and use of explosives in the mining operations. On September 17, 2004 a symbolic “Jacobina Mine Opening” took place that was attended by The Governor of Bahia, The Mayor of Jacobina, The Canadian Ambassador for Brazil and the Ministry of Mines Brasil.

Recognizing the enormous potential of the Bahia Gold Belt, Desert Sun is conducting a significant exploration program in 2004, focused on exploring several new targets identified in the 2003 drill program, most notably Morro do Vento, Canavieiras Mine, Morro do Vento Extension and the northern “blue sky” areas. Drilling at Morro do Vento continues to confirm the potential to outline a large mineral resource amenable to low cost bulk mining techniques. The target Intermediate reef package at Morro do Vento is consistently about 60 to 70 metres wide and extends along the full two kilometres strike length. Morro do Vento is located about 1.5 kilometres from the 4,200 tonnes per day processing plant that is currently being refurbished by Desert Sun in preparation for production. The first stage of metallurgical tests to be carried out by SGS Lakefield Research on samples fromdiamond drill holes at Morro do Vento, to determine recoveries using conventional milling, reported that the overall gold extraction for the Master composite was 96.4% with a range of 95.7% to 97.0%. At the Canavieiras Mine, located three kilometres north of the processing plant, the mineralized horizons are located within a fault-~~866-477-0077~~bounded block that is approximately 1.2 kilometres long and 400 metres wide. The mine was last worked in 1998, and past production

~~TORONTO STOCK EXCHANGE~~2

~~SYMBOL:~~totaled ~~DSM~~458,247 tonnes at a grade of 8.65 g Au/t. In addition, the Company is conducting a major exploration program along the Bahia Gold Belt, which has outlined four major target areas for more detailed follow up. Desert Sun is carrying out an initial 2,000 metre drilling program to test targets identified from soil geochemical sampling by Desert Sun and a recently completed induced polarization geophysical survey by Fugro-LASAGeomag. Desert Sun’s wholly owned Bahia Gold Belt property now totals 131,539 hectares, which includes 5,996 hectares in the mining lease, 97,476 hectares of granted exploration concessions and 28,067 of filed applications for exploration concessions.

In the three months ended September 30, 2004, Desert Sun invested $8.1 million in the acquisition, exploration and development of the Jacobina Mine, compared with $4.7 million in the three months ended June 2530, 2004, $1.8 million in the four months ended March 31, 2004 and $6 million in the three months ended November 30, 2003. Expenditure in the first quarter included $5 million to acquire the remaining 49% interest in the Jacobina property from Valencia Ventures Inc. The purchase price of $5 million was satisfied through a cash payment of $2 million and the issuance of 1,851,852 common shares at a price of $1.62 per share.

~~DESERT~~As ~~SUN~~at ~~ORDERS~~September ~~MOBILE~~30, ~~EQUIPMENT~~2004 ~~AND~~Desert ~~CONCLUDES~~Sun Ahad ~~SUPPLIER~~cash ~~CREDIT~~and ~~AGREEMENT~~equivalents ~~WITH~~totaling ~~ATLAS~~$15.8 ~~COPCO~~million and no debt. On a consolidated basis, the Company recorded a net loss from operations of $1,351,000 in the three months ended September 30, 2004, or 2 cent per share, compared with a net loss in the third, second and first quarters of $543,000, $5,116,000 and $835,000 respectively. Included in the loss from operations is a non-cash compensation expense of $784,000 (third quarter: $105,000, second quarter: $4,478,000, first quarter: $nil), attributable to options issued to directors, officers, employees and consultants and which vested during the particular period, as valued in terms of the Black-Scholes option pricing model. The net loss from operations in the three months, excluding this expense was $567,000, comprising general and administration expenses of $647,000 and interest received on cash invested of $80,000.

DESERT SUN MINING CORP. (TSX: DSM) is pleased to confirm that it has finalized an order for mobile equipment in the amount of US$3.8 million (ex works) from Atlas Copco. Atlas Copco has agreed to provide financing for this equipment over a period of 24-months, with the first payment for each piece of equipment due nine months after its shipment. The equipment financing effectively defers an up-front cash requirement of approximately US$3 million until the point where the company has reached a steady state of production. Delivery of the units will take place starting September 2004, with the final loader being delivered in January 2005.

Desert Sun is initially purchasing three ST 1520 Loaders, two RB 282 Rocket Boomers and two M6C ITH Simbas. Atlas Copco will establish a Parts Warehouse at Jacobina and has entered into a Full Service Agreement with the Company. To ensure that Desert Sun meets its production timetable, Atlas Copco has agreed to provide appropriate bridge units. Two loaders and two electric hydraulic jumbos will be delivered to Jacobina in July and August 2004. These units will later be available as backup units in support of Atlas Copco’s guarantees, and thereafter can be released or retained on a rental basis at the option of Desert Sun.

In conjunction with an extensive exploration program, the refurbishment of the 4200 tpd mill at Jacobina is well underway, the underground workings have been de-watered and production is expected to commence in the first quarter of 2005. The mine plan contemplates average annual production of approximately 75,000 ounces of gold in 2005 and 108,000 ounces of gold per year from 2006 to 2011, at a cash cost of approximately US$190 per ounce.

About Atlas Copco

The Atlas Copco Group manufactures products on 51 production sites in 17 countries on five continents. Atlas Copco companies develop and manufacture electric and pneumatic tools, compressed air equipment, construction and mining equipment, assembly systems, and offer related service and equipment rental. The products are sold and rented under different brands through a worldwide sales and service network reaching 150 countries, half of which are served by wholly or partly owned sales companies. Head office is in Stockholm, Sweden.

Statements in this release that are not historical facts are “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these “forward-looking statements”.

Desert Sun Mining is a Canadian gold exploration and development company listed on the Toronto Stock Exchange. (www.desertsunmining.com).

DESERT SUN MINING CORP.

65 Queen Street West, Suite 810, PO Box 67, Toronto, Ontario, M5H 2M5

Tel: 416-861-0341 Fax: 416-861-8165

www.desertsunmining.com

Press Release 21 – 2004

For Further Information Contact:

John Carlesso

Vice President, Corporate Development

416-861-5881

1-866-477-0077

TORONTO STOCK EXCHANGE

SYMBOL: DSM

July 6, 2004

DESERT SUN RECEIVES OPERATING PERMIT FOR JACOBINA

DESERT SUN MINING CORP. (TSX:DSM) is pleased to confirm that all operating and environmental permits required to re-start mining operations at the Jacobina Mine have now been approved and issued by the appropriate Brazilian governmental agencies. The Jacobina Mine is located on the Bahia Gold Belt in the State of Bahia, Brazil. In addition to the License of Operation for the mine, Desert Sun has been issued licenses for water usage and water discharge, permits for the purchase and use of cyanide in the metallurgical process, and permits for buying and use of explosives in the mining operations. Desert Sun also recently announced that a protocol agreement offering continued governmental support to the project had been received from the State of Bahia.

Chief Operating Officer Peter W. Tagliamonte, P.Eng. commented: “The co-operation with the Bahia State government and the Departamento Nacional de Produção Mineral (DNPM) throughout this process has been excellent. Major underground equipment has been ordered and will be arriving shortly. With all the environmental and operating permits now in place, we can aggressively proceed to complete the work to begin mining operations. We are very pleased with the progress being made at Jacobina and are confident that we will meet our targets for beginning operations in Q1 of 2005.”

President Stan Bharti added: “We now have the final pieces of the puzzle in place with the granting of the permit and the financing to go forward. The entire team at Desert Sun, and particularly those in Jacobina, has worked tirelessly to achieve this final and most important milestone prior to beginning operations. Our focus at the mines now turns to achieving our operational and economic objectives for the startup of production as set out in the Feasibility Study completed in September 2003. We believe that Desert Sun is now poised to become a world class gold producer.”

About Desert Sun Mining Corp

~~SNC Lavalin completed a Feasibility study for~~ Desert Sun ~~(see~~owns ~~press~~the ~~release~~Jacobina ~~September~~Mine ~~12,~~in ~~2003)~~Bahia ~~which~~State, ~~confirmed~~Brazil ~~the~~and ~~economics of bringing~~ the ~~Jacobina~~associated ~~Mine,~~large ~~on the~~ Bahia Gold Belt ~~in Brazil~~, ~~back~~which ~~into~~stretches ~~production~~for ~~and~~over ~~outlined~~155 akm ~~mineral~~along ~~reserve of 10,746,000 tonnes grading 2~~strike.20 gThe ~~Au/t~~mine ~~containing~~produced ~~758~~almost 700,~~600~~000 ounces of gold~~. SRK Consulting~~ ~~extended~~from ~~the~~1983 ~~SNC~~until ~~Lavalin~~1998, ~~Feasibility~~when ~~Study~~it ~~mine~~was ~~plan~~put ~~(2004~~on standby due to ~~2011)~~low anmetal ~~additional~~prices. 11Total ~~years~~measured toand ~~early~~indicated ~~2023~~mineral byresources ~~scheduling~~reported ~~the~~under ~~potentially~~National ~~“mineable~~Instrument ~~tonnes”~~43-101 ~~resulting~~and ~~from~~reviewed ~~the~~and ~~conversion~~confirmed ofby ~~inferred~~Micon ~~resources~~International ~~based~~are on14,802,000 ~~historical data~~tonnes at 2.86 ~~SRK~~g ~~considered~~Au/t ~~that~~containing ~~Jacobina~~1,362,300 ~~has~~ounces ~~the~~of ~~potential~~gold. toInferred ~~deliver~~mineral ~~“economically~~resources ~~mineable~~total 29,487,000 tonnes” ~~containing~~at 2.62 ~~million~~g ~~recoverable~~Au/t containing 2,479,500 ounces of gold. A ~~key~~These ~~objective~~resources ofare ~~the~~on ~~expanded~~less ~~exploration~~than ~~program~~10% isof ~~to upgrade~~ the ~~presently~~property. ~~inferred~~DSM ~~mineral~~commissioned ~~resources~~a tofeasibility ~~the~~study ~~indicated~~through ~~category~~SNC toLavalin ~~realize~~which ~~these~~in ~~potentially~~September ~~recoverable~~2003 ~~ounces. It~~confirmed ~~must~~the beeconomics ~~cautioned~~of ~~that~~reactivating the ~~SRK~~Jacobina ~~study~~Mine isat ~~not~~a ~~adequate~~gold toprice ~~definitely~~of ~~confirm~~US$350 ~~the~~per ~~economics~~ounce ofand ~~the~~outlined ~~inferred~~proven ~~mineral resources~~ and ~~that~~probable ~~there~~reserves isof no10,746,000 ~~guarantee~~tonnes ~~that~~grading ~~further~~2.20 ~~drilling~~g ~~will~~Au/t ~~upgrade~~containing ~~the~~758,600 ~~inferred~~ounces ~~resources~~of gold. Based on ~~the~~this ~~SNC~~feasibility ~~Lavalin Feasibility~~study, ~~which~~DSM ~~used~~has abegun ~~gold~~reactivation ~~price~~ of ~~US$350~~the ~~per~~mine ~~ounce~~ and aexpects ~~Real~~to ~~(Brazilian~~be ~~currency)~~in toproduction ~~$US~~by ~~exchange~~the ~~rate~~second quarter of ~~3:1~~2005, ~~the~~producing ~~mine~~75,000 ~~can~~ounces be in ~~production~~ by 2005, ~~producing~~and atreaching asteady ~~rate~~state of ~~102~~approximately 103,000 ounces ~~of gold~~ per ~~year~~annum thereafter, at an average cash cost of USapproximately US$~~189~~190 per ounce.

~~The~~Under SEC Guide 7 standards, as reported in the Company’s is20-F ~~presently~~filing, ~~reactivating~~proven and probable reserves are as stated in the ~~Jacobina~~paragraph ~~Mine~~above. In addition, ~~which~~mineralized ~~has~~material in the former Canavieiras mine totals 659,000 tonnes grading 5.88 g Au/t. The reserves have been onestimated ~~standby~~using ~~since~~a ~~1998~~gold price of US$300/ounce, ~~according~~a to3:1 ~~the~~$US:$R ~~feasibility~~exchange ~~plan~~rate, a cutoff grade of 1.3 g Au/t , dilution of 15% at grade estimated from diamond drilling information and including an allowance for mining recovery including pillars.

Desert Sun Mining is a Canadian gold exploration and development company listed on the Toronto Stock Exchange under the symbol “DSM” and on the American Stock Exchange under the symbol “DEZ”. (www.desertsunmining.com).

~~DESERT SUN MINING CORP.~~3

65 Queen Street West, Suite 810, PO Box 67, Toronto, Ontario, M5H 2M5

DESERT SUN MINING CORP.
65 Queen Street West, Suite 810, PO Box 67, Toronto, Ontario, M5H 2M5 Tel: 416-861-0341 Fax: 416-861-8165
For Further Information Contact: John Carlesso Kam Gill 416-861-5881 416-861-0341 1-866-477-0077 1-866-477-0077		Tel: 416-861-0341 Fax: 416-861-8165 www.desertsunmining.com Press Release 36 – 2004 TORONTO STOCK EXCHANGE SYMBOL: DSM
November 15, 2004

~~Tel:~~DESERT ~~416-861-0341 Fax~~SUN MINING SCHEDULES CONFERENCE CALL 10:00 ~~416-861-8165~~AM EDT WEDNESDAY NOVEMBER 17, 2004

~~www.desertsunmining.com~~Pre-production Progress and Q3 Financial Results

~~Press~~Desert ~~Release 22~~Sun –Mining Corp. (TSX:DSM, AMEX:DEZ) will hold a conference call on Wednesday November 17, 2004 to update investors on its pre-production activities and exploration program at the Jacobina Mine on the Bahia Gold Belt in Brazil. Financial results for the third quarter of 2004 will also be discussed.

~~For~~President ~~Further~~and ~~Information~~Chief ~~Contact:~~Executive Officer Bruce Humphrey, Chief Operating Officer Peter Tagliamonte, and Vice President Exploration Dr. Bill Pearson will provide updates on the progress made on the property over the most recent quarter. Chief Financial Officer Stephen Woodhead will update investors on the company’s finances.

~~John~~Conference ~~Carlesso~~Call Details

Vice President, Corporate Development

Date :	Wednesday November 17, 2004
Time:	10:00 am EDT
Local callers:	416-695-6120

~~416~~North American callers: 1-~~861~~888-~~5881~~789-0089

International callers: +1-~~866~~416-~~477~~695-~~0077~~6120

TORONTO STOCK EXCHANGE

SYMBOL: DSM

July 13, 2004

DESERT SUN SCHEDULES CONFERENCE CALL TUESDAY JULY 27TH

PREPRODUCTION AND EXPLORATION UPDATE

DESERT SUN MINING CORP. (TSX: DSM) will hold its regular monthly conference call on Tuesday July 27th to update shareholders on its preproduction activities and exploration program at the Jacobina Mines on the Bahia Gold Belt in Brazil. The operations team in Brazil, led by Chief Operating Officer Peter Tagliamonte, P. Eng., and Vice President Business Development, Kurt Menchen, will present an update on the preproduction activities. Dr. Bill Pearson, P. Geo, Vice President Exploration and the Qualified Person for Desert Sun, will update the shareholders on the drilling program in progress.

CONFERENCE CALL DETAILS

Date: Tuesday July 27th, 2004

Time: 10:00 a.m EDT

Local callers:

416-405-9310

North American callers:

1-877-211-7911

International callers:

+1-416-405-9310

An archive recording of the call will be available following completion of the call on the Desert Sun website at www.desertsunmining.com.

About Desert Sun Mining Corp.

SNC Lavalin completed a Feasibility study for Desert Sun (see press release September 12, 2003) which confirmed the economics of bringing the Jacobina Mine, on the Bahia Gold Belt in Brazil, back into production and outlined a mineral reserve of 10,746,000 tonnes grading 2.20 g Au/t containing 758,600 ounces of gold. SRK Consulting extended the SNC Lavalin Feasibility Study mine plan (2004 to 2011) an additional 11 years to early 2023 by scheduling the potentially “"mineable tonnes”" resulting from the conversion of inferred resources based on historical data. SRK considered that Jacobina has the potential to deliver “"economically mineable tonnes”" containing 2 million recoverable ounces of gold. A key objective of the expanded exploration program is to upgrade the presently inferred mineral resources to the indicated category to realize these potentially recoverable ounces. It must be cautioned that the SRK study is not adequate to definitely confirm the economics of the inferred mineral resources and that there is no guarantee that further drilling will upgrade the inferred resources. Based on the SNC Lavalin Feasibility, which used a gold price of US$350 per ounce and a Real (Brazilian currency) to $US exchange rate of 3:1, the mine can be in production by 2005, producing at a rate of 102,000 ounces of gold per year at an average cash cost of US $189 per ounce.

The Company is presently reactivating the Jacobina Mine, which has been on standby since 1998, according to the feasibility plan.

Statements in this release that are not historical facts are “"forward-looking statements”" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these “"forward-looking statements”".

Desert Sun Mining Corp. is a Canadian gold ~~exploration~~mining and ~~development~~exploration company listed on the Toronto Stock Exchange under the symbol ‘DSM’ and the American Stock Exchange under the symbol ‘DEZ’. (www.desertsunmining.com).

~~DESERT SUN MINING CORP.~~5

65 Queen Street West, Suite 810, PO Box 67, Toronto, Ontario, M5H 2M5

DESERT SUN MINING CORP.
65 Queen Street West, Suite 810, PO Box 67, Toronto, Ontario, M5H 2M5 Tel: 416-861-0341 Fax: 416-861-8165
For Further Information Contact: John Carlesso Kam Gill 416-861-5881 416-861-0341 1-866-477-0077 1-866-477-0077		Tel: 416-861-0341 Fax: 416-861-8165 www.desertsunmining.com Press Release 37 – 2004 TORONTO STOCK EXCHANGE SYMBOL: DSM
November 17, 2004

~~Tel:~~DESERT ~~416-861-0341 Fax:~~SUN ~~416-861-8165~~MINING CONFERENCE CALL POSTPONED DUE TO TECHNICAL DIFFICULTIES

~~www.desertsunmining.com~~Call Re-scheduled for Thursday November 18, 2004 at 10:00 am EDT

~~Press~~DESERT ~~Release 23~~SUN –MINING ~~2004~~CORP. (TSX:DSM, AMEX:DEZ) has postponed its investor conference call originally scheduled for today due to technical difficulties. Telephone lines are down and it is not immediately clear when the situation will be corrected.

~~For~~The ~~Further~~call ~~Information~~will ~~Contact~~be held tomorrow, Thursday November 18, 2004 at 10:00 am EDT.

~~John~~Conference ~~Carlesso~~Call Details

~~Vice~~Date ~~President~~: Thursday November 18, ~~Corporate~~2004 ~~Development~~Time: 10:00 am EDT

Local callers: 416-~~861~~695-~~5881~~6120

North American callers: 1-~~866~~888-~~477~~789-~~0077~~0089

~~TORONTO~~International ~~STOCK~~callers: ~~EXCHANGE~~+1-416-695-6120

SYMBOL: DSM

July 26, 2004

DESERT SUN SCHEDULES CONFERENCE CALL TUESDAY JULY 27TH

PREPRODUCTION AND EXPLORATION UPDATE

CONFERENCE CALL DETAILS

Date: Tuesday July 27th, 2004

Time: 10:00 a.m EDT

Local callers:

416-405-9310

North American callers:

1-877-211-7911

International callers:

+1-416-405-9310

An archive recording of the call will be available following completion of the call on the Desert Sun website at www.desertsunmining.com.

About Desert Sun Mining Corp

SNC Lavalin completed a Feasibility study for Desert Sun (see press release September 12, 2003) which confirmed the economics of bringing the Jacobina Mine, on the Bahia Gold Belt in Brazil, back into production and outlined a mineral reserve of 10,746,000 tonnes grading 2.20 g Au/t containing 758,600 ounces of gold. SRK Consulting extended the SNC Lavalin Feasibility Study mine plan (2004 to 2011) an additional 11 years to early 2023 by scheduling the potentially “mineable tonnes” resulting from the conversion of inferred resources based on historical data. SRK considered that Jacobina has the potential to deliver “economically mineable tonnes” containing 2 million recoverable ounces of gold. A key objective of the expanded exploration program is to upgrade the presently inferred mineral resources to the indicated category to realize these potentially recoverable ounces. It must be cautioned that the SRK study is not adequate to definitely confirm the economics of the inferred mineral resources and that there is no guarantee that further drilling will upgrade the inferred resources. Based on the SNC Lavalin Feasibility, which used a gold price of US$350 per ounce and a Real (Brazilian currency) to $US exchange rate of 3:1, the mine can be in production by 2005, producing at a rate of 102,000 ounces of gold per year at an average cash cost of US $189 per ounce.

The Company is presently reactivating the Jacobina Mine, which has been on standby since 1998, according to the feasibility plan.

Desert Sun Mining is a Canadian gold exploration and development company listed on the Toronto Stock Exchange. (www.desertsunmining.com).

DESERT SUN MINING CORP.

65 Queen Street West, Suite 810, PO Box 67, Toronto, Ontario, M5H 2M5

Tel: 416-861-0341 Fax: 416-861-8165

www.desertsunmining.com

Press Release 24 – 2004

For Further Information Contact:

John Carlesso

Vice President, Corporate Development

416-861-5881

1-866-477-0077

TORONTO STOCK EXCHANGE

SYMBOL: DSM

July 27, 2004

POSITIVE METALLURGICAL TEST RESULTS AT MORRO DO VENTO CONFIRM AVERAGE RECOVERIES OF 96.5% FOR DESERT SUN

DESERT SUN MINING CORP. (TSX: DSM) has received results of the first stage of metallurgical tests performed on samples from diamond drill holes on the Morro do Vento open pit target at the Jacobina Mines on the Bahia Gold Belt in Northeastern Brazil. Morro do Vento is located about 1.5 km from the processing plant and existing mines, and approximately 9 km from the town of Jacobina. Morro do Vento, a new discovery in 2003, is a major, potential open-pit target zone within the Jacobina mining complex. The metallurgical test work was conducted to determine recoveries using conventional milling. DSM is continuing further test work to determine the heap leach potential for Morro do Vento.

SGS Lakefield Research Limited of Lakefield, Ontario has completed test work on six grade/ore type composites and one overall master composite prepared from rejects of diamond drill hole samples from the Morro de Vento project. Samples were selected by DSM to provide a representative range of grade and proportion of oxide/sulphide. Sample selection and the metallurgical test process was reviewed by Bruce Ferguson, P.Eng. consulting metallurgist of Kappes, Cassidy & Associates. All samples were originally prepared and tested for gold by fire assay by Lakefield Geosol in Brazil.

The six grade/ore type composites and one overall Master Composite were crushed to -10 mesh. Metallurgical tests consisted of grinding tests on the Master Composite, followed by cyanidation tests on the Master Composite and the individual Grade/Ore Type composites. Averaged gold assay results for the individual composites ranged from 0.53 g Au/t for the Low Grade Oxide composite to 3.50 g Au/t for the High Grade Oxide composite. Direct assay of the Master composite by screened metallics indicated a grade of 1.73 g Au/t.

SGS Lakefield reported that the overall gold extraction for the Master composite was 96.4% with a range of 95.7% to 97.0%. No significant difference in extraction was observed for the tests conducted at shorter, 12 hour, and longer, 48 hour, leach times. Cyanide and lime consumption for the Master Composite were found to be at 0.81 kg/t and 0.22 kg/t, respectively. Extractions for the individual grade/ore type composites ranged from 90.8% for Low Grade Oxide to 98.5% for High Grade Mixed. Tailings gold grades for these samples ranged from 0.02 to 0.07 g Au/t.

Peter W. Tagliamonte, P.Eng., VP Operations and COO commented “We are very pleased with the Lakefield metallurgical test work results, as they show excellent recoveries throughout the grade spectrum of the Morro de Vento material. Furthermore the overall extraction result is very similar to previous tests on ore material from Serra do Córrego further confirming the recoveries used in the feasibility study. We will now go forward in our test work to determine the potential of heap leach recoveries. Drilling is continuing on this exciting target.”

The Company is pleased to announce that it has appointed Kurt Menchen as the Vice President, Business Development, Brazil. One of Mr. Menchen’s first tasks will be to establish the mineral resource for Morro do Vento and conduct appropriate economic evaluations on the project using both conventional and heap leach recovery methods. The studies are expected to be completed by year end.

Metallurgical tests were carried out by Lyn Jones, P.Eng., Project Metallurgist and Inna Dymov, P.Eng., Senior Metallurgist of SGS Lakefield Research in Lakefield, Ontario. Messieurs Jones and Dymov are Qualified Persons as defined under National Instrument 43-101. Original sample preparation was carried out by Lakefield Geosol, an ISO 9001, 2000 laboratory based in Brazil. Sample selection was done by DSM and reviewed by Mr. Bruce Ferguson, P.Eng. consulting metallurgist for DSM with Kappes, Cassidy & Associates. Mr. Ferguson is a Qualified Person as defined under National Instrument 43-101.

About Desert Sun Mining Corp

SNC Lavalin completed a Feasibility study for Desert Sun (see press release September 12, 2003) which confirmed the economics of bringing the Jacobina Mine, on the Bahia Gold Belt in Brazil, back into production and outlined a mineral reserve of 10,746,000 tonnes grading 2.20 g Au/t containing 758,600 ounces of gold. SRK Consulting extended the SNC Lavalin Feasibility Study mine plan (2004 to 2011) an additional 11 years to early 2023 by scheduling the potentially “mineable tonnes” resulting from the conversion of inferred resources based on historical data. SRK considered that Jacobina has the potential to deliver “economically mineable tonnes” containing 2 million recoverable ounces of gold. A key objective of the expanded exploration program is to upgrade the presently inferred mineral resources to the indicated category to realize these potentially recoverable ounces. It must be cautioned that the SRK study is not adequate to definitely confirm the economics of the inferred mineral resources and that there is no guarantee that further drilling will upgrade the inferred resources. Based on the SNC Lavalin Feasibility, which used a gold price of US$350 per ounce and a Real (Brazilian currency) to $US exchange rate of 3:1, the mine can be in production by 2005, producing at a rate of 102,000 ounces of gold per year at an average cash cost of US $189 per ounce.

The Company is presently reactivating the Jacobina Mine, which has been on standby since 1998, according to the feasibility plan.

Desert Sun Mining is a Canadian gold exploration and development company listed on the Toronto Stock Exchange. (www.desertsunmining.com).

DESERT SUN MINING CORP.

65 Queen Street West, Suite 810, PO Box 67, Toronto, Ontario, M5H 2M5

Tel: 416-861-0341 Fax: 416-861-8165

www.desertsunmining.com

Press Release 25 – 2004

For Further Information Contact:

John Carlesso

Vice President, Corporate Development

416-861-5881

1-866-477-0077

TORONTO STOCK EXCHANGE

SYMBOL: DSM

August 10, 2004

DESERT SUN APPROVED FOR LISTING ON AMERICAN STOCK EXCHANGE UNDER SYMBOL “DEZ”

Trading to begin on Wednesday August 11th, 2004

DESERT SUN MINING CORP. (TSX:DSM) has received approval for the common shares of the Company to be listed on the American Stock Exchange (“AMEX”). The shares will be listed on the AMEX under the ticker symbol “DEZ” and will begin trading on Wednesday, August 11, 2004.

Stan Bharti, P.Eng., President of Desert Sun Mining, commented: “The American Stock Exchange is an acknowledged leader in the listing of mining and resource companies and we are pleased to join in the tradition of many successful Canadian companies that have listed on the AMEX. We are looking forward to the opportunity to introduce our company to investors in the United States, and provide investors all across North America with greater information and improved access to invest in the shares of Desert Sun.”

The company has selected Kellogg Capital Group to act as its Floor Specialist at the American Stock Exchange.

The listing remains contingent upon the Company being in compliance with all applicable listing standards on the date that it begins trading on the American Stock Exchange, and the approval for listing may be rescinded if the Company is not in compliance with such standards.

About Desert Sun Mining Corp

Desert Sun owns the Jacobina mine in Bahia State, Brazil and the associated large Bahia Gold Belt, which stretches for over 155 km along strike. The mine produced almost 700,000 ounces of gold from 1983 until 1998, when it was put on standby due to low metal prices. Total measured and indicated mineral resources reported under National Instrument 43-101 and reviewed and confirmed by Micon International (see press release August 26, 2003) are 14,802,000 tonnes at 2.86 g Au/t containing 1,362,300 ounces of gold. Inferred mineral resources total 29,487,000 tonnes at 2.62 g Au/t containing 2,479,500 ounces of gold. These resources are on less than 10% of the property.

DSM commissioned a feasibility study through SNC Lavalin (see press release September 12, 2003) which confirmed the economics of reactivating the Jacobina Mine at a gold price of US$350 per ounce and outlined proven and probable reserves of 10,746,000 tonnes grading 2.20 g Au/t containing 758,600 ounces of gold within the above measured and indicated mineral resource. Based on the feasibility study, DSM has begun reactivation of the mine and expects to be in production by the second quarter of 2005. The annual production is expected to be 75,000 ounces in 2005 and reach a steady state of approximately 103,000 ounces per annum thereafter, at an average cash cost of approximately US$190 per ounce.

Under SEC Guide 7 standards, as reported in the Company’s 20-F filing, proven and probable reserves are as stated in the paragraph above. In addition, mineralized material in the former Canavieiras mine totals 659,000 tonnes grading 5.88 g Au/t. The reserves have been estimated using a gold price of US$300/ounce, 3:1 $US:$R exchange rate, a cutoff grade of 1.3 g Au/t , dilution of 15% at grade estimated from diamond drilling information and include an allowance for mining recovery including pillars.

The Company has also initiated an aggressive exploration program in 2004 to explore for new zones and upgrade inferred mineral resources to the indicated category. DSM has identified a new discovery, Morro do Vento, located 1.5km north of the processing plant, which has the potential to host a major open pittable mineral resource. The Morro do Vento exploration drilling program is in progress and a new mineral resource estimate to NI 43-101 standards is expected to be announced by year end. The Company is also conducting exploration on the northern part of the Bahia Gold Belt, some 50 km north of the Jacobina Mine.

Desert Sun Mining is a Canadian gold exploration and development company listed on the Toronto Stock Exchange under the symbol “DSM” and will be listed on the American Stock Exchange under the symbol “DEZ” on August 11, 2004. (www.desertsunmining.com).

DESERT SUN MINING CORP.

65 Queen Street West, Suite 810, PO Box 67, Toronto, Ontario, M5H 2M5

Tel: 416-861-0341 Fax: 416-861-8165

www.desertsunmining.com

Press Release 26 – 2004

For Further Information Contact:

John Carlesso

Vice President, Corporate Development

416-861-5881

1-866-477-0077

TORONTO STOCK EXCHANGE

SYMBOL: DSM

September 9th, 2004

DESERT SUN SCHEDULES CONFERENCE CALL TUESDAY SEPTEMBER 14TH

PREPRODUCTION AND EXPLORATION UPDATE

DESERT SUN MINING CORP. (TSX: DSM) will hold its regular monthly conference call on Tuesday September 14th to update shareholders on its preproduction activities and exploration program at the Jacobina Mine on the Bahia Gold Belt in Brazil. The operations team in Brazil, led by Chief Operating Officer Peter Tagliamonte, P. Eng., and Vice President Business Development, Kurt Menchen, will present an update on the preproduction activities. Dr. Bill Pearson, P. Geo, Vice President Exploration and the Qualified Person for Desert Sun, will update the shareholders on the drilling program in progress.

CONFERENCE CALL DETAILS

Date: Tuesday September 14th, 2004

Time: 10:00 a.m EDT

Local callers:

416-405-9310

North American callers:

1-877-211-7911

International callers:

+1-416-405-9310

An archive recording of the call will be available following completion of the call on the Desert Sun website at www.desertsunmining.com.

About Desert Sun Mining Corp

SNC Lavalin completed a Feasibility study for Desert Sun (see press release September 12, 2003) which confirmed the economics of bringing the Jacobina Mine, on the Bahia Gold Belt in Brazil, back into production and outlined a mineral reserve of 10,746,000 tonnes grading 2.20 g Au/t containing 758,600 ounces of gold. SRK Consulting extended the SNC Lavalin Feasibility Study mine plan (2004 to 2011) an additional 11 years to early 2023 by scheduling the potentially “mineable tonnes” resulting from the conversion of inferred resources based on historical data. SRK considered that Jacobina has the potential to deliver “economically mineable tonnes” containing 2 million recoverable ounces of gold. A key objective of the expanded exploration program is to upgrade the presently inferred mineral resources to the indicated category to realize these potentially recoverable ounces. It must be cautioned that the SRK study is not adequate to definitely confirm the economics of the inferred mineral resources and that there is no guarantee that further drilling will upgrade the inferred resources. Based on the SNC Lavalin Feasibility, which used a gold price of US$350 per ounce and a Real (Brazilian currency) to $US exchange rate of 3:1, the mine can be in production by 2005, producing at a rate of 102,000 ounces of gold per year at an average cash cost of US $189 per ounce.

The Company is presently reactivating the Jacobina Mine, which has been on standby since 1998, according to the feasibility plan.

DESERT SUN MINING CORP.

65 Queen Street West, Suite 810, PO Box 67, Toronto, Ontario, M5H 2M5

Tel: 416-861-0341 Fax: 416-861-8165

www.desertsunmining.com

Press Release 27 – 2004

For Further Information Contact:

John Carlesso

Vice President, Corporate Development

416-861-5881

1-866-477-0077

TORONTO STOCK EXCHANGE

SYMBOL: DSM

AMERICAN STOCK EXCHANGE

SYMBOL: DEZ

September 13th, 2004

DESERT SUN SCHEDULES CONFERENCE CALL TUESDAY SEPTEMBER 14TH

PREPRODUCTION AND EXPLORATION UPDATE

DESERT SUN MINING CORP. (TSX: DSM) (AMEX: DEZ) will hold its regular monthly conference call on Tuesday September 14th to update shareholders on its preproduction activities and exploration program at the Jacobina Mine on the Bahia Gold Belt in Brazil. The operations team in Brazil, led by Chief Operating Officer Peter Tagliamonte, P. Eng., and Vice President Business Development, Kurt Menchen, will present an update on the preproduction activities. Dr. Bill Pearson, P. Geo, Vice President Exploration and the Qualified Person for Desert Sun, will update the shareholders on the drilling program in progress.

CONFERENCE CALL DETAILS

Date: Tuesday September 14th, 2004

Time: 10:00 a.m EDT

Local callers:

416-405-9310

North American callers:

1-877-211-7911

International callers:

+1-416-405-9310

An archive recording of the call will be available following completion of the call on the Desert Sun website at www.desertsunmining.com.

About Desert Sun Mining Corp

SNC Lavalin completed a Feasibility study for Desert Sun (see press release September 12, 2003) which confirmed the economics of bringing the Jacobina Mine, on the Bahia Gold Belt in Brazil, back into production and outlined a mineral reserve of 10,746,000 tonnes grading 2.20 g Au/t containing 758,600 ounces of gold. SRK Consulting extended the SNC Lavalin Feasibility Study mine plan (2004 to 2011) an additional 11 years to early 2023 by scheduling the potentially “mineable tonnes” resulting from the conversion of inferred resources based on historical data. SRK considered that Jacobina has the potential to deliver “economically mineable tonnes” containing 2 million recoverable ounces of gold. A key objective of the expanded exploration program is to upgrade the presently inferred mineral resources to the indicated category to realize these potentially recoverable ounces. It must be cautioned that the SRK study is not adequate to definitely confirm the economics of the inferred mineral resources and that there is no guarantee that further drilling will upgrade the inferred resources. Based on the SNC Lavalin Feasibility, which used a gold price of US$350 per ounce and a Real (Brazilian currency) to $US exchange rate of 3:1, the mine can be in production by 2005, producing at a rate of 102,000 ounces of gold per year at an average cash cost of US $189 per ounce.

The Company is presently reactivating the Jacobina Mine, which has been on standby since 1998, according to the feasibility plan.

Desert Sun Mining is a Canadian gold exploration and development company listed on the Toronto Stock Exchange. (www.desertsunmining.com).

DESERT SUN MINING CORP.

65 Queen Street West, Suite 810, PO Box 67, Toronto, Ontario, M5H 2M5

Tel: 416-861-0341 Fax: 416-861-8165

www.desertsunmining.com

Press Release 28 – 2004

For Further Information Contact:

John Carlesso

Vice President, Corporate Development

416-861-5881

1-866-477-0077

TORONTO STOCK EXCHANGE

SYMBOL: DSM

AMERICAN STOCK EXCHANGE

SYMBOL: DEZ

September 15, 2004

DESERT SUN IDENTIFIES MAJOR NEW ZONE AT MORRO DO VENTO EXTENSION

DESERT SUN MINING CORP. (TSX:DSM) (AMEX:DEZ) has received surface diamond drill results from the Morro do Vento Extension (“MVTE”) area, located immediately north of the processing plant at the Jacobina Mine area, on the Bahia Gold Belt in Northeastern Brazil (see Figure 1).

Highlights include:

Hole MCZ-83 intersected 4.94 g Au/t over a true width of 12.6m and Hole MCZ-79 intersected 3.17 g Au/t over 9.8 m, both in the Main Reef

Hole MCZ-81 intersected 2.84 g Au/t over a true width of 13.8m and Hole MCZ-80 intersected 2.13 g Au/t over a true width of 15.1m, both in the Basal Reef

The two conglomerate reefs known as the Basal and Main Reefs that were intersected in the new drill holes are the northern extension of the same reefs in the Morro do Vento area that were previously mined. The Main Reef in the MVTE is a major new extension that potentially could be up to 1 km in strike length while the results from the Basal Reef confirm the downdip continuity below current measured and indicated mineral resources. As shown in Figure 2, a cross section, these reefs are about 50m apart and approximately 200 metres stratigraphically below the Intermediate Reefs that are being explored for their open pit potential at Morro do Vento. The Intermediate Reefs are stratigraphically equivalent to the main conglomerate zone at the Jacobina Mine which is currently being reactivated by DSM.

Dr. Bill Pearson, P.Geo., Vice President, Exploration stated: “These results are very positive as they indicate another major target zone with the potential to outline significant higher grade resources close to existing underground workings.”

Past production from the Basal and Main Reefs in both the Morro do Vento and MVTE areas totaled 2,036,634 tonnes at a recovered grade of 4.14 g Au/tonne containing 271,046 ounces of gold. Of the total past production, about 72% came from the Main Reef zone, however no previous production is recorded from this reef in the MVTE area. The Basal Reef in the MVTE contains measured and indicated mineral resources of 2,148,000 tonnes at 2.75 g Au/t containing 190,000 ounces of gold and an inferred mineral resource of 645,000 tonnes at 2.67 g Au/t containing 55,000 ounces of gold as previously reported (see press release of August 25, 2003 and NI 43-101 report by Micon International dated August 2003). Historic underground and surface diamond drill holes that tested the Basal Reef also intersected the Main Reef target zone area however most drill core in this zone was not previously assayed because of the predominantly structural style of the mineralization. This core is now being sampled as part of the current program.

Table 1: Significant Drilling Results, Morro do Vento Extension

Hole No.*	From (m)	To (m)	Gold (g/t)	Interval (m)	True Width (m)	Reef/Zone	Depth Below Surface** (m)
MORRO DO VENTO EXTENSION (CUSCUZ)
MCZ-79	N8755332	E334888	El 673
dip -58°	348.15	349.68	2.32	1.53	1.4	Satellite	430
	462.48	484.48	1.68	22.00	20.0	Main-FW	510
incl.	462.48	473.25	3.17	10.77	9.8	Main	505
MCZ-80	N8755397	E334.869	El 689
dip -48°	371.35	374.42	2.86	3.07	3.0	Main	410
	389.04	402.97	1.33	13.93	13.8	FW	420
	427.86	443.09	2.13	15.23	15.1	Basal	450
MCZ-81	N 8755332	E 334888	El 673
dip -42°	357.89	362.22	2.70	4.33	4.2	Main	310
	415.05	438.91	2.21	23.86	23.1	Basal	393
incl.	424.65	438.91	2.84	14.26	13.8	Basal	396
MCZ-83	N 8755290	E 334882	El 664
dip -48°	415.43	428.69	4.94	13.26	12.6	Main	400

* all holes are NQ diamond drill core size and have been drilled perpendicular to the north-south strike of the zones.

** depth calculated based on midpoint of intersection

Assaying for the program was carried out by Lakefield Geosol, an ISO 9001, 2000 laboratory based in Brazil, using fire assay on 50 gram pulps. Check assaying is routinely carried out, by ALS Chemex in Vancouver, on 10% of sample pulps and 5% of sample rejects. Independent standard reference samples are also inserted at regular intervals into each batch of analyses. Security is maintained at the core logging and sampling facility. Dr. Bill Pearson, P.Geo. is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the program.

Desert Sun Mining is a Canadian gold exploration and development company listed on the Toronto Stock Exchange and the American Stock Exchange. (www.desertsunmining.com).

~~Figure 1: Plan map showing location of Morro do Vento Extension Target Area~~6

Figure 2: Cross Section Morro do Vento Extension Area

DESERT SUN MINING CORP.
65 Queen Street West, Suite 810, PO Box 67, Toronto, Ontario, M5H 2M5 Tel: 416-861-0341 Fax: 416-861-8165
For Further Information Contact: John Carlesso Kam Gill 416-861-5881 416-861-0341 1-866-477-0077 1-866-477-0077		Tel: 416-861-0341 Fax: 416-861-8165 www.desertsunmining.com Press Release 38 – 2004 TORONTO STOCK EXCHANGE SYMBOL: DSM
November 17, 2004

DESERT SUN ~~MINING~~REPORTS ~~CORP.~~SIGNIFICANT INCREASE IN MEASURED AND INDICATED RESOURCES AT JACOBINA

65DESERT ~~Queen~~SUN ~~Street~~MINING ~~West~~CORP. (TSX:DSM, ~~Suite~~AMEX:DEZ) ~~810,~~has POreceived ~~Box~~all ~~67,~~results ~~Toronto,~~from ~~Ontario,~~surface ~~M5H~~diamond ~~2M5~~drilling at the Jacobina Mine (Joao Belo zone) and has updated the mineral resource estimate for this zone based on this data in combination with historical drill results. Updated mineral resource estimates incorporating new drilling data previously released are also being completed for the Canavieiras and Morro do Vento target areas and these will be reported separately. This press release provides an interim statement of updated mineral resources at Jacobina shown in Table 1 below. A final statement of updated mineral reserves and mineral resources for Jacobina will be reported by year end.

~~Tel:~~Measured ~~416-861-0341 Fax:~~and ~~416-861-8165~~indicated mineral resources on the Jacobina properties now total 18,280,000 tonnes grading 2.79 grams gold per tonne (g Au/t) containing 1.65 million ounces of gold. Inferred mineral resources total 18,280,000 tonnes grading 2.51 g Au/t containing 2.1 million ounces.

~~www~~At the Jacobina Mine (Joao Belo Zone) Desert Sun completed 11 drill holes including wedges totaling 6,630m that were focused on upgrading previously defined inferred mineral resources to the indicated category.~~desertsunmining~~ Significant assay results from this drilling are given in Table 2 below and the locations of the drill hole pierce points are shown in Figure 1, a vertical longitudinal section.~~com~~

~~Press~~Measured ~~Release 29~~and –Indicated ~~2004~~Mineral Resources at the Jacobina Mine now total 12,600,000 tonnes at 2.38 g Au/t containing 970,000 ounces of gold. This is an addition of 3,500,000 tonnes grading 2.48 g Au/t containing 280,000 ounces of gold, an increase of 40%, from the August 2003 estimate.

~~For~~Inferred ~~Further~~mineral ~~Information~~resources ~~Contact:~~are now 5,300,000 tonnes grading 2.33 g Au/t containing 390,000 ounces of gold. This is a reduction from the August 2003 inferred mineral resource of 8,600,000 at 2.77 g Au/t containing 760,000 ounces of gold reflecting the successful upgrading of a significant portion of this inferred resource to the indicated category. The mineralized zone is open along strike and at depth hence it is very likely that significant additional resources will be outlined by further drilling.

~~John~~Peter ~~Carlesso~~Tagliamonte, P.Eng., Vice President Operations and COO said: “The Desert Sun mine staff is currently completing a mine plan and mineral reserve estimate for the new indicated mineral resource. We are very encouraged by the results from the 2004 drilling program as it demonstrates that the Jacobina Mine is developing into a long term mining asset. Underground diamond drill platforms are being developed. Therefore, drilling in 2005 will be faster and significantly more cost effective, and will allow for additional expansion and conversion of the inferred resources."

~~Vice President, Corporate Development~~7

~~416-861-5881~~Dr. Bill Pearson, P.Geo., Vice President, Exploration commented: “The 2004 drilling program at the Joao Belo Zone was very successful in achieving its objectives of upgrading previously outlined inferred mineral resources to the indicated category. The cost of upgrading an inferred ounce to the indicated category was extremely efficient at approximately US$2.40 per ounce. We believe that the Joao Belo zone is a major centre for hydrothermal gold mineralization in the belt.

~~1-866-477-0077~~As we complete further drilling and continue to better understand the system, I believe that the gold mineralization will be found to be far more extensive than previously thought.”

~~TORONTO~~The ~~STOCK~~updated ~~EXCHANGE~~resource estimate for the Joao Belo Zone has been reviewed and confirmed by Terry Hennessey, P.Geo. of Micon International. Mr. Hennessey is an independent qualified person as defined under National Instrument 43-101. The resource estimation methodology and classification used is the same as outlined in the August 2003 report by Mr. Hennessey filed on SEDAR.

SYMBOL: DSM

AMERICAN STOCK EXCHANGE

SYMBOL: DEZ

September 21, 2004

DESERT SUN APPOINTS BRUCE HUMPHREY PRESIDENT & CEO

Stan Bharti Appointed Chairman & Gerry McCarvill Appointed Vice-Chairman

DESERT SUN MINING CORP. (TSX: DSM) (AMEX: DEZ) is pleased to announce that Bruce Humphrey, P.Eng., has joined the firm as President and Chief Executive Officer and a member of the Board of Directors. Stan Bharti, P.Eng. has been appointed Chairman of the Board of Directors and Gerry McCarvill has been appointed Vice Chairman of the Desert Sun Board. Both Messrs. Bharti and McCarvill will continue to be active in the growth of the Company. Mr. Humphrey’s commencement date with the Company will be mid October 2004.

Mr. Humphrey is a mining engineer with 30 years experience in the mining industry. He has worked for several major mining companies and mining contractors in a variety of engineering, operations and executive management positions. He has been very active in several mining associations and mine safety groups.

In his most recent position, Mr. Humphrey was Senior Vice President and Chief Operating Officer of Goldcorp Inc., (TSX: G) (NYSE: GG). His responsibilities included the re-development, start-up and operation of the high grade Red Lake Mine as well as the Exploration Group and Goldcorp’s operations in South Dakota and Saskatchewan.

Mr. Humphrey’s considerable experience in operating significant gold mining operations is a great step forward as the Company enters this all important stage of building a world class mining company. Mr. Humphrey’s compensation package includes a grant of options which is subject to shareholder approval.

“It’s a pleasure to welcome Bruce to the Desert Sun team and to the Board of Directors. His extensive operational and management experience, particularly at Goldcorp will be valuable to Desert Sun as we move into production,” said Stan Bharti.

Desert Sun owns 100% of the Jacobina Mine and the 155 km long Bahia Gold Belt in the state of Bahia, in northeastern Brazil. The mine will re-start operations in the first quarter of 2005. Based on the SNC Lavalin Feasibility Study which used a gold price of US $350 per ounce and a Real (Brazilian currency) to $ US exchange rate of 3:1, the mine can produce at a rate of 102,000 ounces of gold per year at an average cash cost of US $189 per ounce.

Mr. Stan Bharti, and Mr. Gerry McCarvill who have been instrumental in building the Company since the outset, will continue to contribute to the Company’s performance as Chairman and Vice-Chairman respectively.

Mr. Bharti is well known on an international basis as an innovative mining finance executive and will continue to expand relationships with investment banks and institutional investors.

Mr. McCarvill will focus on bringing a higher profile of Desert Sun to retail investors in the United States and Canada. Recently, the Company was listed on the American Stock Exchange thereby allowing US investors better access to the Company.

The Board of Directors would like to thank Messrs. Bharti and McCarvill for a job well done in bringing the Company to this advanced stage, and congratulate all three gentlemen on their new positions.

Desert Sun Mining is a Canadian gold exploration and development company listed on the Toronto Stock Exchange and the American Stock Exchange. (www.desertsunmining.com).

DESERT SUN MINING CORP.

65 Queen Street West, Suite 810, PO Box 67, Toronto, Ontario, M5H 2M5

Tel: 416-861-0341 Fax: 416-861-8165

www.desertsunmining.com

Press Release 30 – 2004

For Further Information Contact:

John Carlesso

Vice President, Corporate Development

416-861-5881

1-866-477-0077

TORONTO STOCK EXCHANGE

SYMBOL: DSM

AMERICAN STOCK EXCHANGE

SYMBOL: DEZ

September 27, 2004

DESERT SUN MINING RINGS THE OPENING BELL AT THE AMEX STOCK EXCHANGE

DESERT SUN MINING CORP. (TSX: DSM) (AMEX: DEZ) will officially commemorate its recent listing on the American Stock Exchange by ringing the Opening Bell ceremony on Monday September 27, 2004 at 9:30 am EDT.

“The listing of our common shares on the Amex signals the important phase of development and growth for the Company” stated Desert Sun Chairman Stan Bharti. “Our strong management team has been further enhanced by the recent addition of Bruce Humphrey, P.Eng., as President and CEO. On September 17th, the Jacobina Mine was officially opened in a ceremony presided over by Mr. Paulo Souto, Governor of the State of Bahia in Brazil and Canadian Ambassador to Brazil Madame Suzanne Laporte. We are on target for the startup of production activities in Q1 2005.”

Video footage of the Opening Bell can be viewed at www.amex.com.

Following the Opening Bell on Monday September 27, Desert Sun Chairman Stan Bharti will appear as a guest on the CNNfn program “The Money Gang” at 1:00 pm EDT.

On Monday evening, the management of Desert Sun Mining will host a reception with the Brazilian Consul General in New York, Ambassador Julio Cesar Gomes dos Santos, and the Canadian Consul General in New York, Ms. Pamela Wallin.

On Wednesday September 29, 2004, Mr. Bharti will be the featured guest on the Power Breakfast segment on ROBTv at 8:50 am EDT, with the interview repeated at 10:50 EDT.

Desert Sun Mining is a Canadian gold exploration and development company listed on the Toronto Stock Exchange and the American Stock Exchange. (www.desertsunmining.com).

DESERT SUN MINING CORP.

65 Queen Street West, Suite 810, PO Box 67, Toronto, Ontario, M5H 2M5

Tel: 416-861-0341 Fax: 416-861-8165

www.desertsunmining.com

Press Release 31 – 2004

For Further Information Contact:

John Carlesso

Vice President, Corporate Development

416-861-5881

1-866-477-0077

TORONTO STOCK EXCHANGE

SYMBOL: DSM

AMERICAN STOCK EXCHANGE

SYMBOL: DEZ

September 29, 2004

DESERT SUN DRILLING CONFIRMS WIDE AREA OF GOLD MINERALIZATION AT MORRO DO VENTO

DESERT SUN MINING CORP. (TSX:DSM) has received additional drill results that further support the possibility of outlining a large mineral resource at the Morro do Vento target area at the Jacobina Mines on the Bahia Gold Belt in Brazil. Morro do Vento is located about 1.5 km from the processing plant and existing mines, and approximately 9 km from the town of Jacobina.

To date 80 holes totaling 13,700 m have been completed at Morro do Vento and results have been received for all of these holes. The target Intermediate reef package is consistently about 60-70m wide and extends along the full 2km strike length with extensive garimpos (free miners workings).

Table 1 below summarizes new drilling results at Morro do Vento which are principally from holes in the central 900 metre long core of the target zone (see Figure 1).

Highlights include:

MVT-335 which intersected 1.01 grams gold per tonne (g Au/t) over a true width of 54.3m including a higher grade intersection of 2.65 g Au/t over a true width of 8.6m;

MVT-353 which intersected 0.93 g Au/t over a true width of 80.5m including a higher grade intersection of 2.04 g Au/t over 11.0m true width; and

MVT-346 which returned 0.88 g Au/t over a true width of 65.9m including 2.93 g Au/t over a true width of 10.2m;

MVT-357 which intersected 0.81 g Au/t over a true width of 46.7m including 1.67 g Au/t over 10.4m true width

Dr. Bill Pearson, P.Geo. stated: “These results continue to confirm the wide extent of gold mineralization in the Morro do Vento zone. Detailed drilling has also provided much better definition of higher grade shoots within the broad lower grade zone. Work has begun on estimating a new mineral resource which will form the basis for a preliminary evaluation study by SRK Consulting.”

Morro do Vento Preliminary Evaluation Study Commences

Desert Sun has retained SRK Consulting to complete a preliminary evaluation study of the Morro do Vento target zone. This study will examine both open pittable and bulk underground mining possibilities with processing by conventional and heap leach methods. Mr. Ken Reipas, P.Eng. will be the project manager for SRK. The resource model is currently being updated and a mineral resource estimate incorporating all new drill data will be completed by John Reddick, P.Geo. of Reddick Consulting Ltd. in collaboration with Terry Hennessey, P.Geo. of Micon International. Preliminary metallurgical testing to assess the heap leach potential will be carried out at CETEM, an independent metallurgical laboratory in Rio de Janeiro, Brazil under the supervision of Bruce Ferguson, P.Eng., consulting metallurgist with Kappes, Cassiday. As previously reported (see press release July 27, 2004), positive metallurgical tests were obtained for conventional processing by SGS Lakefield of Lakefield, Ontario, Canada. It is expected that the study will be completed by the end of this year.

Desert Sun Mining is a Canadian gold exploration and development company listed on the Toronto Stock Exchange and the American Stock Exchange. (www.desertsunmining.com).

~~Table 1: Significant Drilling Results, Morro do Vento~~8

Hole No.*	From (m)	To (m)	Gold (g/t)	Interval (m)	True Width (m)	Depth Below Surface** (m)
MORRO DO VENTO (DETAILED DRILLING AREA)
MVT 335	N8753634	E334709	El 970
dip -82°	35.23	122.85	1.01	87.62	54.3	78
incl.	35.23	38.63	2.17	3.40	2.1	40
incl.	50.72	60.86	1.58	10.14	6.3	55
incl.	83.43	97.27	2.65	13.84	8.6	92
incl.	115.22	122.85	2.17	7.63	4.7	118
MVT 341	N 8753489	E 334750	El 989
dip -71°	353.76	359.80	2.65	6.04	6.0	230
incl.	356.54	359.80	4.01	3.26	3.3	244
MVT 346	N 8753585	E 334742	El 966
dip -88°	74.60	173.03	0.88	98.43	65.9	130
incl.	74.60	77.89	4.12	3.29	2.2	80
incl.	114.62	129.80	2.93	15.18	10.2	125
incl.	168.01	173.03	2.05	5.02	3.4	175
MVT 349	N8753687	E334680	El 980
dip -40°	3.00	83.14	0.61	80.14	78.5	38
incl.	37.93	46.32	2.10	8.39	8.2	38
incl.	81.19	83.14	3.00	1.95	1.9	70
MVT 350	N8753935	E334663	El 990
dip -40°	50.14	56.00	0.65	5.86	5.9	35
incl.	81.00	82.83	2.19	1.83	1.8	45
MVT351	N8753937	E334663	El 991
dip -62°	33.29	111.00	0.63	77.71	67.6	73
incl.	55.18	73.63	1.08	18.45	16.1	64
incl.	100.47	111.00	1.52	10.53	9.2	102
MVT 352	N 8753509	E 334.750	El 987
dip -89°	102.20	105.39	1.62	3.19	1.6	100

Table 1

*Interim ~~all~~Mineral ~~holes~~Resources ~~are~~Statement, NQJacobina Updated ~~diamond~~as ~~drill core size and have been drilled + perpendicular to the north-south strike~~ of ~~the~~November ~~zones.~~16, 2004

** depth calculated based on midpoint of intersection

		As of November 2004**			Status
Category	Area	Tonnes	Grade (g/t Au)	Contained Gold (ounces)	Change from August 2003
Measured	Joao Belo	2,300,000	2.41	180,000	unchanged
	Itapicuriu	250,000	5.70	45,000	unchanged
	Serra do C6rrego	10,000	7.50	3,000	unchanged
	Canavieiras	56,000	6.73	12,000	unchanged
	Subtotal	2,620,000	0.00	240,000	unchanged
Indicated	Joao Belo	10,300,000	2.37	790,000	increased
	Itapicuru	3,860,000	3.51	440,000	re-estimating
	Serra do C6rrego	910,000	2.39	70,000	unchanged
	Canavieiras	600,000	5.80	110,000	re-estimating
	Subtotal	15,670,000	2.78	1,410,000	increased
Total	Joao Belo	12,600,000	2.38	970,000	increased
Measured and	Itapicuru*	4,110,000	3.64	480,000	re-estimating
Indicated	Serra do Corr6go	920,000	2.44	72,000	unchanged
	Canavieiras	660,000	5.88	125,000	re-estimating
	Total	18,290,000	2.79	1,650,000	increased
Inferred	Joao Belo	5,300,000	2.33	390,000	decreased
	Itapicuru*	12,200,000	2.00	780,000	re-estimating
	Serra do C6rrego	1,800,000	2.95	170,000	unchanged
	Canavieiras	4,000,000	3.55	460,000	re-estimating
	Other Areas	2,900,000	3.26	300,000	unchanged
	Total	26,200,000	2.51	2,100,000	re-estimating

~~Table~~* 1:Includes ~~Significant Drilling Results,~~ Morro do Vento ~~(con’t)~~target area ** Totals have been rounded

Hole No.*	From (m)	To (m)	Gold (g/t)	Interval (m)	True Width (m)	Depth Below Surface** (m)
MORRO DO VENTO (DETAILED DRILLING AREA)
MVT353	N8753889	E334669	El 992
dip -86°	63.50	246.43	0.93	182.93	80.5	100
incl.	81.00	89.12	2.06	8.12	3.6	57
incl.	128.11	153.00	2.04	24.89	11.0	94
incl.	219.55	246.43	1.97	26.88	11.8	138
MVT 354	N8753939	E334666	El 993
dip -72°	46.70	237.00	0.50	190.30	68.5	104
incl.	86.17	94.91	1.75	8.74	3.1	70
incl.	148.40	177.66	1.07	29.26	10.5	118
incl.	220.21	237.00	1.01	16.79	6.0	165
MVT 355	N8754082	E 334622	El 1004
dip -72°	16.86	205.24	0.69	188.38	67.8	95
incl.	147.26	156.43	1.83	9.17	3.3	125
incl.	193.92	205.24	4.36	11.32	4.1	164
MVT 356	N8754142	E334615	El 997
dip -87º	13.65	96.95	0.71	83.30	56.6	54
incl.	13.65	20.50	0.99	6.85	4.7	18
incl.	50.50	52.96	1.46	2.46	1.7	50
incl.	84.51	96.95	3.23	12.44	8.5	88
MVT 357	N8753968	E334647	El 997
dip -70°	42.55	222.34	0.81	179.79	46.7	105
incl.	116.37	156.30	1.67	39.93	10.4	106
incl.	201.70	208.46	2.51	6.76	1.8	158
MVT 358	N8753 995	E334689	El 978
dip -75º	72.62	232.87	0.60	160.25	67.3	118
MVT 359	N 8754138	E334674	El 967
dip -73º	66.84	217.90	0.53	151.06	46.8	110
incl.	66.84	75.29	1.46	8.45	2.6	57
incl.	91.44	96.30	1.74	4.86	1.5	75
incl.	160.03	174.10	2.57	14.07	4.4	132
incl.	165.58	174.10	3.88	8.52	2.6	132

*Table ~~all~~2: ~~holes~~Significant ~~are~~Drilling NQResults, ~~diamond~~Jacobina ~~drill~~Mine ~~core~~(Joao ~~size~~Belo ~~and have been drilled perpendicular to the north-south strike of the zones.~~ Zone)

** depth calculated based on midpoint of intersection

Hole No.*	From (m)	To (m)	Gold (g/t)	Interval (m)	True Width (m)	Depth Below 670 Adit Level (m)**
Hole No.*	From (m)	To (m)	Gold (g/t)	Interval (m)	True Width (m)	above	below
JBA-295	N 8751220	E 34445	El 786
dip - 73°	276.62	278.40	1.29	1.78	1.4		150
	376.96	380.27	1.09	3.31	2.6		245
	426.15	426.81	4.42	0.66	0.5		290
	486.87	488.31	2.20	1.44	1.1		340
	NOTE: Hole caved before LMPC target reef intersected wedged as JBA-295D
JBA-295D	N 8751220	E 34445	El 786
dip - 73°	485.52	487.82	2.01	2.30	1.8		350
	501.06	503.12	2.39	2.06	1.6		365
	541.88	544.34	1.76	2.46	1.9		405
	729.03	731.58	3.12	2.55	2.0		580
	755.83	768.32	1.23	12.49	9.6		605
JBA-298	N 8750874	E334406	El 803
dip - 69°	386.87	389.91	1.38	3.04	2.6		235
incl	527.37	550.25	2.12	22.88	19.9		385
incl	527.37	540.86	2.70	13.49	11.7		370
JBA-305	N8750944	E334413	El 784
dip - 61°	477.33	479.35	5.40	2.02	1.7		310
	498.23	522.36	2.30	24.13	20.8		350
incl	498.23	511.81	2.83	13.58	11.7		345
incl	518.87	522.36	3.86	3.49	3.0		355
	712.52	717.9	1.13	5.38	4.6		535
JBA-307	N 8750875	E334095	El 1032
dip - 77°	349.70	361.41	2.54	11.71	8.0	2
incl	349.70	354.90	5.00	5.20	3.5	5
	407.68	416.40	2.14	8.72	5.9		45
	441.38	445.90	2.49	4.52	3.1		73
	509.02	510.39	6.16	1.37	0.9		135
JBA-308	N8750674	E334427	El 841
dip - 58°	542.24	557.00	1.82	14.76	13.3		310
	542.24	551.91	2.12	9.67	8.7		305
	571.42	575.89	1.53	4.47	4.0		328
JBA-309	N 8750772	E334415	El 834
dip - 69°	571.51	584.47	1.76	12.96	10.1	383
incl	578.35	584.47	3.28	6.12	4.8	385

~~Table~~* 1:all ~~Significant~~holes ~~Drilling~~are ~~Results,~~NQ ~~Morro~~diamond dodrill ~~Vento~~core ~~(con’t)~~size

Hole No.*	From (m)	To (m)	Gold (g/t)	Interval (m)	True Width (m)	Depth Below Surface** (m)
MORRO DO VENTO (DETAILED DRILLING AREA)
MVT 360	N 8754299	E 334.665	El 944
dip -50º	45.94	47.06	1.31	1.12	1.0	51
	Faulted
MVT 361	N8754257	E 334664	El 951
dip -73º	3.65	91.22	0.51	87.57	69.2	50
incl.	3.65	6.77	1.04	3.12	2.5	5
incl.	15.63	21.57	1.29	5.94	4.7	19
incl.	85.29	91.22	2.76	5.93	4.7	94
MVT 362	N 8754054	E334631	El 1000
dip -43º	13.89	17.12	1.30	3.23	3.2	12
incl.	33.51	35.86	0.56	2.35	2.3	26
incl.	63.27	70.79	0.59	7.52	7.4	47
MVT363	N 8754120	E334735	El 923
dip -48º35'	44.76	114.79	0.76	70.03	67.9	97
incl.	44.76	48.00	1.39	3.24	3.1	60
incl.	87.31	94.49	2.74	7.18	7.0	110
incl.	110.57	114.79	3.46	4.22	4.1	137
MVT364	N 8754137	E334673	El 968
dip -80º	34.06	132.39	0.57	98.33	69.8	93
incl.	34.06	40.65	1.89	6.59	4.7	45
incl.	49.81	52.71	2.93	2.90	2.1	58
incl.	95.95	100.48	1.83	4.53	3.2	106
incl.	128.85	132.39	2.52	3.54	2.5	140
MVT 365	N 8754100	E334638	El 997
dip -87º	26.15	141.16	0.42	115.01	67.9	83
incl.	36.34	40.20	1.04	3.86	2.3	39
incl.	87.79	93.06	2.02	5.27	3.1	90
incl.	135.97	141.16	2.99	5.19	3.1	135
MVT 366	N 8754330	E334700	El 932
dip -81º	84.76	92.05	3.24	7.29	5.0	95
incl.	82.41	92.05	2.52	9.64	6.7	92

** depth calculated based on midpoint of intersection; 670m level is the main haulageway at Jacobina Mine

* all holes are NQ diamond drill core size and have been drilled perpendicular to the north-south strike of the zones. 10

**Table ~~depth~~2: ~~calculated~~Significant ~~based~~Drilling onResults, ~~midpoint~~Jacobina ofMine ~~intersection~~(Joao Belo Zone) (con’t)

Table 1: Significant Drilling Results, Morro do Vento (con’t)

Hole No.*	From (m) To (m)	Gold (g/t)	Interval (m)	True Width (m)	Depth Below 670 Adit Level (m)**
Hole No.*	From (m) To (m)	Gold (g/t)	Interval (m)	True Width (m)	above	below
JBA-310	N 8750823 E334096	El 1028
dip - 47°	351.47 355.36	4.77	3.89	3.7	115
JBA-311	N 8751158 E334426	El 799
dip - 70°	482.00 483.47	7.29	1.47	1.1		330
	496.31 505.13	1.71	8.82	6.9		344
incl	501.45 505.13	2.12	3.68	2.9		350
	546.86 550.43	3.17	3.57	2.8		390
JBA-312	N 851075 E334095	El 1032
dip - 87°	509.6 520.97	4.34	11.37	6.1		180
	highs cut to 30g/t	3.61
incl	516.1 520.97	9.48	4.87	2.6		180
	highs cut to 30g/t	7.78
	568.33 594.71	2.77	26.38	14.2		245
JBA-313	N 8751370 E334427	El 741
dip - 69°	415.60 420.36	1.33	4.76	3.7		325

Hole No.*	From (m)	To (m)	Gold (g/t)	Interval (m)	True Width (m)	Depth Below Surface** (m)
MVT367	N 8754010	E 334675	El 988
dip -77º	36.16	135.76	0.58	99.60	73.7	95
incl.	50.90	54.38	1.87	3.48	2.6	60
incl.	83.57	90.73	2.38	7.16	5.3	96
incl.	129.39	135.76	1.70	6.37	4.7	140
MVT368	N 8754240	E 334663	El 955
dip -76º	6.45	95.27	0.43	88.82	68.4	53
incl.	18.30	25.10	0.64	6.80	5.2	24
incl.	59.26	63.44	0.79	4.18	3.2	65
incl.	89.24	95.27	2.84	6.03	4.6	98
MVT 369	N 8754409	E 334677	El 938
dip -43º	27.03	29.34	3.37	2.31	2.3	27
incl.	24.66	29.34	1.93	4.68	4.6	27
MVT370	N 8754385	E334711	El 923
dip -83º	76.96	83.03	0.90	6.07	3.3	75
MORRO DO VENTO (NORTHERN END OF TARGET AREA)
MVT 326	N 8754690	E334900	El 672
dip +8°	No significant values
MVT 327	N 8754818	E 334859	El 671
dip +23°	51.09	52.03	4.82	0.94	0.4	25
incl.	51.09	58.85	1.02	7.76	3.5	27
MVT 328	N 8754768	E 334879	El 662
dip +18°	45.55	47.65	1.63	2.1	1.1	33

* all holes are NQ diamond drill core size

** ~~all~~depth ~~holes~~calculated ~~are~~based NQon ~~diamond~~midpoint ~~drill~~of ~~core~~intersection; ~~size~~670m ~~and~~level ~~have~~is ~~been drilled + perpendicular to~~ the ~~north-south~~main ~~strike~~haulageway ofat ~~the~~Jacobina ~~zones.~~ Mine

** depth calculated based on midpoint of intersection11

Figure 1: Vertical Longitudinal Section, ofJacobina ~~Morro~~Mine do(Joao ~~Vento~~Belo ~~showing Location of Detailed Drilling Area~~Zone)

[desertsun6kmay132005002.gif]

DESERT SUN MINING CORP.

65 Queen Street West, Suite 810, PO Box 67, Toronto, Ontario, M5H 2M5

Tel: 416-861-0341 Fax: 416-861-8165

www.desertsunmining.com

Press Release 32 – 2004

For Further Information Contact:

John Carlesso

Vice President, Corporate Development

416-861-5881

1-866-477-0077

TORONTO STOCK EXCHANGE

SYMBOL: DSM

AMERICAN STOCK EXCHANGE

SYMBOL: DEZ

October 1, 2004

DESERT SUN DECIDES NOT TO PROCEED WITH $15 MILLION CREDIT FACILITY WITH QUEST CAPITAL

DESERT SUN MINING CORP. (TSX: DSM; AMEX: DEZ) has decided not to proceed with the previously negotiated $15 million credit facility with Quest Capital Corp. (see Press Release dated June 8, 2004). Following completion of the equity financing announced September 30, 2004, for up to $20 million, Desert Sun will have no immediate requirement for a credit facility to complete project construction at the Jacobina Mine on the Bahia Gold Belt in northeastern Brazil.

Desert Sun Mining is a Canadian gold exploration and development company listed on the Toronto Stock Exchange and the American Stock Exchange. (www.desertsunmining.com).

DESERT SUN MINING CORP.

65 Queen Street West, Suite 810, PO Box 67, Toronto, Ontario, M5H 2M5

Tel: 416-861-0341 Fax: 416-861-8165

Fellow Shareholders:

I am pleased to report to you that ~~the completion of the recent quarter finds us continuing to record~~ solid progress ~~towards~~has ~~our~~been ~~objectives~~made oftowards re-starting production at the Jacobina Mine in 2005, and increasing the resources and reserves on the Bahia Gold Belt in northeast Brazil.

Pre-Production Activity

~~Shortly~~At ~~after~~ the ~~completion~~Jacobina ofMine, ~~the~~construction ~~quarter,~~and adevelopment ~~very~~activities ~~significant~~continue ~~achievement~~at ~~toward~~an ~~mine~~accelerated ~~reactivation~~rate. ~~was~~Ramp ~~realized~~development inhas ~~the~~commenced ~~form~~and is ahead of schedule. Mine offices, the ~~approval~~mechanical ofshop and staff facilities have been completed and the ~~final~~main ~~Operating~~electrical ~~Permit~~transmission line for the ~~Jacobina~~underground ~~Mine~~mining byarea ~~the~~was ~~State~~activated ~~government~~at the end of ~~Bahia~~October. ~~This~~Construction ~~removes~~of ~~all~~the ~~remaining~~foundations ~~bureaucratic~~for ~~hurdles~~the ~~and~~four ~~allows~~new usleach totanks, ~~aggressively~~as ~~proceed~~well toas ~~complete~~ the ~~work~~crusher, tois ~~begin~~scheduled ~~mining~~for ~~operations~~completion in November 2004. ~~During~~Installation ~~the~~of ~~quarter~~power ~~the~~and ~~State~~instrumentation ~~government~~should also ~~signed~~be asubstantially ~~Protocol~~complete ofby ~~Intentions~~the ~~containing~~end ~~financial~~of ~~incentives,~~November. ~~tax~~A ~~deferrals,~~“Commissioning ~~and~~Team” ~~tax~~has ~~reductions~~been ~~that~~established ~~significantly~~to ~~enhance~~ensure ~~the~~mill ~~economics~~commissioning ofproceeds ~~mining operations~~smoothly.

~~During~~On ~~the~~September ~~quarter~~17, ~~Desert~~2004 ~~Sun~~a ~~secured~~symbolic a“Jacobina ~~$15~~Mine ~~million~~Opening” ~~non-hedged~~took ~~credit~~place ~~facility~~that ~~which~~was ~~will~~attended ~~provide~~by ~~the~~The ~~necessary~~Governor ~~capital~~of toBahia, ~~complete~~The ~~construction~~Mayor ~~and~~of ~~mine~~Jacobina, ~~startup~~The ~~activities.~~Canadian ~~Financing~~Ambassador for ~~mobile~~Brazil ~~equipment has also been secured~~ and the ~~major~~Ministry ~~equipment~~of ~~has~~Mines ~~been ordered~~Brasil.

Exploration Activity

~~During~~The ~~the quarter the~~ exploration team ~~continued~~continues to achieve significant success. ~~Drilling~~Diamond drilling at ~~Joao~~the ~~Belo~~Jacobina Mine has indicated the potential for major depth extension and upgrading of the Inferred ~~resource~~resources to the Indicated category. At Morro do Vento, ~~further~~ drilling continues to support the possibility of outlining a large mineral resource conducive to low-cost, bulk mining techniques. AtAn independent consultant is producing a new resource estimate for Morro de Vento, while a preliminary environmental review is being initiated to determine requirements and the ~~former~~timetable ~~Canavieiras~~for ~~Mine~~permitting, ~~results~~for ~~have~~a ~~been~~possible ~~very~~open ~~positive~~pit and ~~indicate~~/ ~~that~~or ~~significant~~underground ~~higher~~operation. ~~grade~~A ~~resources~~dedicated ~~could~~project bemanager ~~outlined~~has ~~both~~been ~~along~~appointed ~~strike~~to assume responsibility for analyzing and atmanaging ~~depth~~the various development projects within the Jacobina Mine area.

In the northern extension of the Bahia Gold Belt, Desert Sun has significantly increased its land holdings and has identified four major target areas. Drilling ~~has~~is ~~commenced~~progressing on these targets with two drill rigs in the area.

With all of our activities, wethe ~~continue~~Board toof beDirectors and management are extremely focused on the efficient execution of the tasks at hand: the restart of mining and production activities in 2005, and ~~increasing~~the increase of the mineral resources and reserves on the Bahia Gold Belt. Through these activities we remain committed to delivering long-term value to our shareholders.

Yours truly,

“signed”

Stan Bharti

~~DESERT~~Bruce ~~SUN MINING CORP.~~Humphrey

~~CONSOLIDATED BALANCE SHEETS~~ Chairman

~~(Stated~~President inand ~~Canadian~~Chief ~~Dollars~~Executive ~~- Unaudited)~~Officer

~~June 30,~~13

August 31,

DESERT SUN MINING CORP. CONSOLIDATED BALANCE SHEETS (Stated in Canadian Dollars)
	September 30, 2004 (Unaudited)	August 31, 2003 (Audited)
Assets
Current Cash and equivalents	$ 15,800,980	$ 6,832,461
Amounts receivable and prepaid expenses	1,148,181	68,742
	16,949,161	6,901,203
Exploration property, plant and equipment (Note 2)	23,736,296	3,147,498
Capital assets (Note 3)	3,886,303	39,455
	$ 44,571,760	$ 10,088,156

Liabilities Current Accounts payable and accrued liabilities	$ 2,415,941	$ 487,632
Contingency (Note 4(c)) Shareholders' Equity Share capital (Note 4)	47,002,785	16,952,085
Warrants (Note 5)	6,479,289	1,682,832
Contributed surplus (Note 7)	5,981,294	428,419
Deficit	(17,307,549)	(9,462,812)
	42,155,819	9,600,524
	$ 44,571,760	$ 10,088,156

2004

2003

(Unaudited)

(Audited)

Assets

Current

Cash and equivalents

23,791,077

6,832,461

Amounts receivable and prepaid expenses

1,177,274

68,742

24,968,351

6,901,203

Exploration property, plant and equipment (Note 2)

15,615,409

3,147,498

Equipment (Note 3)

930,584

39,455

41,514,344

10,088,156

Liabilities

Current

Accounts payable and accrued liabilities

666,824

487,632

Shareholders' Equity

Share capital (Note 4)

44,745,660

16,952,085

Warrants (Note 5)

7,082,765

1,682,832

Contributed surplus (Note 8)

4,975,943

428,419

Deficit

(15,956,848)

(9,462,812)

40,847,520

9,600,524

41,514,344

10,088,156

Responsibility for Financial Statements

The accompanying financial statements for Desert Sun Mining Corp. have been prepared by management in accordance with Canadian generally accepted accounting principles, consistently applied. These statements are unaudited and have not been reviewed by the auditors. The most significant accounting principles have been set out in the August 31, 2003 audited financial statements. Only changes in accounting policies have been disclosed in these financial statements. These financial statements are presented on the accrual basis of accounting and accordingly, a precise determination of many assets and liabilities is dependent upon future events. Estimates and approximations have been made using careful judgement. Recognizing that the Company is responsible for both the integrity and objectivity of the financial statements, management is satisfied that these financial statements have been fairly presented.

See notes to the consolidated financial statements

~~DESERT SUN MINING CORP.~~14

CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT

DESERT SUN MINING CORP. CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Stated in Canadian Dollars - Unaudited)
	Common Shares		Warrants	Contributed Surplus	Accumulated Deficit	Total
	#	$	$	$	$	$
Balance, August 31, 2001	15,535,818	6,937,867	-	-	(7,083,318)	(145,451)
Private placements	500,000	100,000	-	-	-	100,000
Exercise of stock options	789,290	94,715	-	-	-	94,715
Issuance of special warrants for cash	-	-	-	1,872,475	-	1,872,475
Loss for the period	-	-	-	-	(125,421)	(125,421)
Balance, August 31,2002	16,825,108	7,132,582	-	1,872,475	(7,208,739)	1,796,318
Issuance of special warrants for cash	-	-	-	100,000	-	100,000
Conversion of special warrants	5,000,000	1,419,047	553,428	(1,972,475)	-	-
Private placements	9,246,520	7,694,174	1,212,471	179,545	-	9,086,190
Stock-based compensation	-	-	-	248,874	-	248,874
Exercise of warrants	835,000	433,517	(83,067)	-	-	350,450
Exercise of stock options	961,790	272,765	-	-	-	272,765
Adjustment	66	-	-	-	-	-
Loss for the period	-	-	-	-	(2,254,073)	(2,254,073)
Balance, August 31, 2003	32,868,484	16,952,085	1,682,832	428,419	(9,462,812)	9,600,524
Issued for Jacobina gold property	1,851,852	3,000,000	-	-	-	3,000,000
Private placements	19,879,707	31,198,702	-	-	-	31,198,702
Warrant valuation	-	(5,823,530)	5,823,530	-	-	-
Exercise of warrants	4,104,000	3,098,700	-	-	-	3,098,700
Warrant valuation allocation on exercise of warrants	-	805,722	(805,722)	-	-	-
Exercise of stock options	422,500	241,350	-	-	-	241,350
Stock option valuation allocation on exercise of options	-	35,000	-	(35,000)	-	-
Expiry of warrants			(221,351)	221,351		-
Stock-based compensation				5,366,524		5,366,524
Share issue costs		(2,505,244)				(2,505,244)
Loss for the period					(7,844,737)	(7,844,737)
Balance, September 30, 2004	59,126,543	47,002,785	6,479,289	5,981,294	(17,307,549)	(42,155,819)

(Stated in Canadian Dollars - Unaudited)

Three Months

Ten Months

Nine Months

Ended

June 30,

May 31,

June 30,

May 31,

2004

2003

2004

2003

Expenses

Amortization

(23,899)

3,307

4,851

3,771

Compensation expense (Note 7)

104,600

19,125

4,582,524

367,125

Consulting fees

19,406

266,363

Director's fees

23,000

47,000

Investor relations and

shareholders' information

95,414

171,419

445,883

291,105

Management and administrative

services

173,925

122,547

842,504

526,695

Office and miscellaneous

129,934

37,544

295,041

182,547

Professional fees

55,384

24,658

138,678

56,767

Transfer agent, listing and filing

fees

17,813

4,946

57,852

16,161

Travel and entertainment

132,367

77,346

296,496

211,748

727,944

460,892

6,977,192

1,655,919

Other

Interest income

(189,751)

(21,052)

(480,309)

(40,363)

Foreign exchange loss / (gain)

4,671

1,945

(2,847)

1,224

Net loss for the period

(542,864)

(441,785)

(6,494,036)

DEFICIT, beginning of period

(15,413,984)

(8,383,734)

(9,462,812)

(7,208,739)

DEFICIT, end of period

(15,956,848)

(8,825,519)

(15,956,848)

(8,825,519)

Net loss per share - basic and

diluted (Note 10)

(0.01)

(0.02)

(0.12)

(0.07)

Weighted average number

of shares outstanding

57,236,873

21,792,818

53,807,922

21,792,818

See notes to the consolidated financial statements

~~DESERT SUN MINING CORP.~~15

CONSOLIDATED STATEMENTS OF CASH FLOWS

DESERT SUN MINING CORP. CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT (Stated in Canadian Dollars)
	Three Months Ended September 30, 2004 (unaudited)	Three Months Ended August 31, 2003 (unaudited)	Thirteen Months Ended September 30, 2004 (unaudited)	Twelve Months Ended August 31, 2003 (audited)
Revenue	-	-	-	-
Expenses Amortization	1,006	(819)	5,857	2,952
Compensation expense (Note 7)	784,000	(118,251)	5,366,524	248,874
Consulting fees	72,188	152,895	338,551	152,895
Director's fees	-	-	47,000	-
Investor relations and shareholders' information	154,242	98,007	600,125	389,112
Management and administrative services	183,667	190,050	1,026,171	716,745
Office and miscellaneous	83,045	50,725	378,086	233,272
Professional fees	618	61,911	139,296	118,678
Transfer agent, listing and filing fees	68,721	151,001	126,573	167,162
Travel and entertainment	73,462	85,957	369,958	297,705
	1,420,949	671,476	8,398,141	2,327,395
Other Interest income	(80,173)	(42,079)	(561,598)	(82,442)
Interest expense	-	1,476	1,116	1,476
Foreign exchange loss	9,925	6,420	7,078	7,644
Net loss for the period	(1,350,701)	(637,293)	(7,844,737)	(2,254,073)
DEFICIT, beginning of period	(15,956,848)	(8,825,519)	(9,462,812)	(7,208,739)
DEFICIT, end of period	$ (17,307,549)	$ (9,462,812)	$ (17,307,549)	$ (9,462,812)
Net loss per share - basic and diluted (Note 9)	$ (0.02)	$ (0.02)	$ (0.14)	$ (0.09)
Weighted average number of shares outstanding	58,726,434	29,531,764	54,370,991	25,048,434

(Stated in Canadian Dollars - Unaudited)

Three Months

Ten Months

Nine Months

Ended

June 30,

May 31,

June 30,

May 31,

2004

2003

2004

2003

Cash Provided by (Used in):

OPERATING ACTIVITIES

Net loss for the period

(542,864)

(441,785)

(6,494,036)

(1,616,780)

Adjustment for non-cash items:

Amortization

(23,899)

3,307

4,851

3,771

Compensation expense (Note 7)

104,600

19,125

4,582,524

367,125

Net change in non-cash working

capital balances

(91,149)

(3,401)

(921,629)

(12,399)

(553,312)

(422,754)

(2,828,290)

(1,258,283)

INVESTING ACTIVITIES

Exploration property, plant and

equipment (net)

(4,662,765)

(766,137)

(9,467,911)

(1,570,893)

Equipment (net)

(399,967)

20,160

(903,691)

(22,928)

(5,062,732)

(745,977)

(10,371,602)

(1,593,821)

FINANCING ACTIVITIES

Funds in trust

425,000

Issuance of common shares,

net of issue costs

36,000

(40,459)

30,158,508

36,000

384,541

30,158,508

CHANGE IN CASH AND

EQUIVALENTS, for the period

(5,580,044)

(784,190)

16,958,616

1,830,143

CASH AND EQUIVALENTS,

beginning of period

29,371,121

4,349,472

6,832,461

1,735,139

CASH AND EQUIVALENTS,

end of period

23,791,077

3,565,282

23,791,077

3,565,282

Supplemental cash flow information

Exploration property, plant and

equipment

3,000,000

Common shares

(3,035,000)

Contributed surplus

35,000

See notes to the consolidated financial statements

DESERT SUN MINING CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Stated in Canadian Dollars)

Three Months Ended September 30, 2004 (unaudited)

Three MonthsEnded August 31, 2003 (unaudited)

Thirteen Months Ended September 30, 2004

(unaudited)

Twelve Months Ended August 31, 2003

(Audited)

Cash Provided by (Used in):

OPERATING ACTIVITIES

Net loss for the period

$ (1,350,701)

$ (637,293)

$ (7,844,737)

$ (2,254,073)

Adjustment for non-cash items:

Amortization

1,006

(819)

5,857

2,952

Compensation expense (Note 7)

784,000

(118,251)

5,366,524

248,874

Net change in non-cash working

capital balances

1,778,240

456,632

856,611

444,233

1,212,545

(299,731)

(1,615,745)

(1,558,014)

INVESTING ACTIVITIES

Exploration property, plant and

equipment (net)

(8,071,261)

(1,540,769)

(17,539,172)

(3,111,662)

Capital assets (net)

(3,006,381)

(19,479)

(3,910,072)

(42,407)

(11,077,642)

(1,560,248)

(21,449,244)

(3,154,069)

FINANCING ACTIVITIES

Issuance of common shares (net

of issue costs)

1,875,000

5,127,158

32,033,508

9,809,405

CHANGE IN CASH AND

EQUIVALENTS, for the period

(7,990,097)

3,267,179

8,968,519

5,097,322

CASH AND EQUIVALENTS,

beginning of period

23,791,077

3,565,282

6,832,461

1,735,139

CASH AND EQUIVALENTS,

end of period

$ 15,800,980

$ 6,832,461

$ 15,800,980

$ 6,832,461

Supplemental information:

Exploration property, plant and

equipment

$ -

$ 3,000,000

$ -

Common shares

(3,035,000)

Contributed surplus

$ -

$ 35,000

$ -

Conversion of special warrants

to shares and warrants

$ -

$ -

$ 1,972,475

See notes to the consolidated financial statements

DESERT SUN MINING CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Stated in Canadian Dollars - Unaudited)

~~Ten~~Thirteen Months Ended ~~June~~September 30, 2004

SIGNIFICANT ACCOUNTING POLICIES

The management of Desert Sun Mining Corp. ("Desert Sun" or the "Company") has prepared these unaudited financial statements for the ~~ten~~thirteen months ended ~~June~~September 30, 2004, in accordance with Canadian generally accepted accounting principles for interim financial statements. These financial statements should be read in conjunction with the August 31, 2003 audited financial statements.

These unaudited interim financial statements follow the same accounting policies as the August 31, 2003 audited financial statements, except for the following:

Stock - Based Compensation

The CICA Handbook Section 3870 requires that compensation for option awards to employees be recognized in the financial statements at fair value for options granted in fiscal years beginning on or after January 1, 2004. The Company, as permitted by CICA Handbook Section 3870, has adopted this section prospectively for new option awards granted on or after September 1, 2003. Accordingly, a compensation expense has been recorded for the ~~ten~~thirteen months ended ~~June~~September 30, 2004 for awards granted in the period using the fair value method. The proforma expense applicable to the options granted to employees in the ~~nine~~twelve months ended ~~May~~August 31, 2003 was $1463,~~313,548~~336.

The disclosure in these interim financial statements may not conform in all respects to Canadian generally accepted accounting principles for annual financial statements.

In the opinion of management, all adjustments considered necessary for fair presentation have been included in these unaudited consolidated financial statements. Operating results for the ~~ten~~thirteen months ended ~~June~~September 30, 2004 are not indicative of the results that may be expected for the full fiscal year ending December 31, 2004.

EXPLORATION PROPERTY, PLANT AND EQUIPMENT

Opening Balance

	Opening Balance	Expenditure during the Period	Ending Balance September 30, 2004
Acquisition costs	325,000	5,000,000	5,325,000
Exploration costs Feasibility study expenses	626,648	151,018	777,666
Drilling and assaying	832,260	4,042,923	4,875,183
Access roads	-	94,445	94,445
Geological and geophysical	378,872	801,631	1,180,503
Prospecting	-	55,903	55,903
Transport and travel expenses	246,305	323,816	570,121
Labour and consumables	738,413	993,376	1,731,789
Site administration	-	196,100	196,100
Preproduction costs Mine development – Jacobina mine	-	2,071,884	2,071,884
Mine development - Process area	-	5,219,735	5,219,735
Transport and travel expenses	-	235,025	235,025
Mine development – Labour and consumables	-	1,402,942	1,402,942
	3,147,498	20,588,798	23,736,296

~~Expenditure During~~18

Ending Balance

September 1, 2003

the Period

June 30, 2004

Acquisition costs

325,000

5,000,000

5,325,000

Exploration costs

Feasibility study expenses

626,648

152,109

778,757

Drilling and assaying

832,260

2,971,817

3,804,077

Access roads

77,179

Geological and geophysical

378,872

627,282

1,006,154

Transport and travel expenses

246,305

242,199

488,504

Labour, administration and consumables

738,413

1,736,983

2,475,396

Preproduction costs

Mine development – Jacobina Mine

491,832

Mill process area – Jacobina Mine

862,329

Transport and travel expenses

100,739

Mine development – Consumables

205,442

3,147,498

12,467,911

15,615,409

DESERT SUN MINING CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Stated in Canadian Dollars - Unaudited)

~~Ten~~Thirteen Months Ended ~~June~~September 30, 2004

EXPLORATION PROPERTY, PLANT AND EQUIPMENT (continued)

Jacobina Mine, Bahia State, Brazil

Desert Sun entered into an option agreement with Valencia Ventures Inc. (formerly William Multi-Tech Inc.) ("VVI") dated May 17, 2002 to acquire a 51% interest in the Jacobina Mine and related mineral concessions by paying $25,000 and agreeing to spend US$2 million on the properties prior to December 31, 2004. An officer and director of the Company is a director of VVI. On September 20, 2002, Desert Sun entered into a Memorandum of Understanding whereby the Company could acquire the remaining 49% interest in the mine by paying $100,000 upon execution of a formal agreement and a further $5,000,000 within 90 days of earning the initial 51% interest.

On August 1, 2003, Desert Sun entered into an agreement with Rockwater Capital Corporation ("Rockwater") to purchase from Rockwater a 1.7% net smelter return royalty on the Jacobina Mine for cash consideration of $200,000. A director of the Company was also a director of Rockwater.

In September 2003, Desert Sun completed the expenditure commitment required in terms of the option agreement, acquired a 51% interest in the Jacobina Mine and related mineral concessions and exercised its option to acquire the remaining 49% interest of the Jacobina property, plant and equipment from VVI. The purchase price of $5 million was satisfied through a cash payment of $2 million and the issuance of 1,851,852 common shares in the capital of the Company, at a price of $1.62 per share. As a result of the exercise of this option, Desert Sun owns 100% of the Jacobina property subject to a 5% net profit interest in favour of a third party. To give effect to this acquisition, Desert Sun has acquired a 100% interest in the equity of Jacobina ~~Mineração~~Mineragao e Comercio Ltda. ("Jacobina"), the Brazilian company that holds the mining and exploration licences, fixed property, ~~etc~~and plant and equipment.

~~EQUIPMENT~~CAPITAL ASSETS

Accumulated

	Cost	Accumulated Amortization	2004 Net	2003 Net
Canada Computer equipment	6,522	1,780	4,742	24,702
Office furniture and equipment	13,499	3,632	9,867	14,753
Brazil Plant construction	2,059	-	2,059	-
Equipment	1,083,290	-	1,083,290	-
Vehicles	2,183,344	-	2,183,344	-
Computer equipment	121,010	-	121,010	-
Office furniture and equipment	29,850	-	29,850	-
Property, plant and equipment (Note 3(a))	29,684,732	29,232,591	452,141	-
	33,124,306	29,238,003	3,886,303	39,455

~~2004~~(a) In September 2003, Desert Sun acquired a 100% interest in the equity of Jacobina Mineragao e Comercio Ltda., the Brazilian company that holds the Jacobina Mine mining and exploration licences, fixed property and plant and equipment. The historical book value of the assets was substantially written down when the mine was placed on care-and-maintenance in 1998 by VVI; with the remaining value attributed principally to the fixed property. Management has reviewed the fixed property portfolio and has determined that the current fair value of the fixed property exceeds the stated book value.

~~2003~~19

Cost

Amortization

Net

Canada

Computer equipment

6,522

1,481

5,041

24,702

Office furniture and equipment

13,499

2,925

10,574

14,753

Brazil

Equipment

96,239

Vehicles

245,087

Computer equipment

106,657

Office furniture and equipment

14,845

Property, plant and equipment (Note 3(a))

452,141

934,990

4,406

930,584

39,455

(a)

In September 2003, Desert Sun acquired a 100% interest in the equity of Jacobina Mineração e Comercio Ltda., the Brazilian company that holds the Jacobina Mine mining and exploration licences, fixed property and plant and equipment. The historical book value of the assets was substantially written down when the mine was placed on care-and-maintenance in 1998 by VVI; with the remaining value attributed principally to the fixed property. Management has reviewed the fixed property portfolio and has determined that the current fair value of the fixed property exceeds the stated book value.

DESERT SUN MINING CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Stated in Canadian Dollars - Unaudited)

~~Ten~~Thirteen Months Ended ~~June~~September 30, 2004

SHARE CAPITAL

a) Authorized – unlimited common shares without par value

~~Authorized - unlimited common shares without par value~~b) Issued

	Number of Shares	Amount
Beginning balance, August 31, 2003 (audited)	32,868,484	$ 16,952,085
Issued for Jacobina gold property (Note 4(c))	1,851,852	3,000,000
Private placement - gross proceeds (Note 4(d))	8,115,000	11,198,700
Private placement - gross proceeds (Note 4(e))	11,764,707	20,000,002
Warrant valuation (Note 4(e))		(5,823,530)
Exercise of warrants - cash proceeds	4,104,000	3,098,700
Exercise of warrants - warrant valuation allocation		805,722
Exercise of stock options - cash proceeds	422,500	241,350
Exercise of stock options - option valuation allocation		35,000
Share issue costs		(2,505,244)
Ending balance, September 30, 2004 (unaudited)	59,126,543	$ 47,002,785

Issued

Number of Shares

Amount

Beginning balance, August 31, 2003 (audited)

32,868,484

16,952,085

Issued for Jacobina gold property (Note 4(c))

1,851,852

3,000,000

Private placement - gross proceeds (Note 4(d))

8,115,000

11,198,700

Private placement - gross proceeds (Note 4(e))

11,764,707

20,000,002

Warrant valuation (Note 4(e))

(5,823,530)

Exercise of warrants - cash proceeds

2,244,000

1,223,700

Exercise of warrants - warrant valuation allocation

423,597

Exercise of stock options - cash proceeds

422,500

241,350

Exercise of stock options - option valuation allocation

35,000

Share issue costs

(2,505,244)

Ending balance, June 30, 2004 (unaudited)

57,266,543

44,745,660

(c)

Acquisition of 100% of the Jacobina Mine

In September 2003, Desert Sun exercised its option to acquire the remaining 49% interest of the Jacobina property from Valencia Ventures Inc. (''VVI''). The purchase price of $5 million was satisfied through a cash payment of $2 million and the issuance of 1,851,852 common shares in the capital of the Company to VVI at a price of $1.62 per share. As a result of the exercise of this option, Desert Sun owns 100% of the Jacobina property subject to a 5% net profit interest in favour of a third party. An officer and director of the Company is a director of VVI.

~~(d)~~Under the agreement, VVI has provided certain indemnities to Desert Sun for liabilities outstanding at the date of acquisition. These amounts include taxes payable to the Brazilian Federal and State authorities, for which formal refinancing arrangements have now been concluded; liabilities to third parties, which are presently subject to settlement negotiations; as well as labour and health related claims by former employees, which are being contested in court. Arrangements have been made by VVI to settle all of the past taxes payable over periods of up to 15 years, which total some $1.6 million. A conservative estimate of the claims relating to silicosis, for the period prior to the Company’s acquisition of Jacobina, and for which VVI has indemnified Desert Sun is US$1.6 million. It is management’s belief that the labour related claims are substantially without merit and Desert Sun and VVI intend to defend the actions vigorously.

(d) $11 million private placement

In September 2003 Desert Sun issued 8,115,000 common shares at a price of $1.38 per share for total gross proceeds of $11.2 million pursuant to an underwriting agreement with Sprott Securities Inc., Griffiths McBurney & Partners, Octagon Capital Corporation and Pacific International Securities Inc. Proceeds from the offering are to be used to fund the development of the Jacobina project in Brazil and for working capital purposes.

~~(e)~~20

$20 million bought deal financing

In November 2003, Desert Sun completed a bought deal financing pursuant to which it raised $20 million through the issuance of 11,764,707 units at a price of $1.70 per unit. Each unit consisted of one common share and one-half of one common share purchase warrant of Desert Sun. Each whole warrant will be exercisable at a price of $2.50 and expire on November 20, 2008. Proceeds from the offering are to be used to fund the development of the Jacobina project in Brazil and for working capital purposes.

The gross proceeds have been prorated to common shares and warrants based on the fair value of each component, as follows: shares - $14,176,470; warrants - $5,823,530.

(f)

Compensation options

As part of the private placement on July 22, 2003, 227,272 Compensation Options were issued. Each Compensation Option entitles the holder to purchase one Compensation Unit at a price of $1.10 per Compensation Unit until July 22, 2005. Each Compensation Unit consists of one common share of the Company and one half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share of the Company at a price of $1.35 until July 22, 2005.

DESERT SUN MINING CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Stated in Canadian Dollars - Unaudited)

~~Ten~~Thirteen Months Ended ~~June~~September 30, 2004

(e) $20 million bought deal financing

The gross proceeds have been prorated to common shares and warrants based on the fair value of each component, as follows: shares - $14,176,470; warrants - $5,823,530.

(f) Compensation options

WARRANTS

The following summarizes the warrant activity during the ~~ten~~thirteen months ended ~~June~~September 30, 2004:

Number of

	Number of warrants	Weighted Average Exercise Price
Balance, August 31, 2003 (audited)	7,288,260	$ 1.00
Issued	5,882,353	2.50
Exercised	(4,129,000)	1.05
Expired	(990,533)	1.25
Balance, September 30, 2004 (unaudited)	8,051,080	$ 2.19

~~Weighted~~Summary ~~Average~~of warrants outstanding at September 30, 2004:

warrants

Expiry Date	Number of Warrants	Exercise Price	Amount (*)
July 22, 2005	2,168,727	1.35	655,758
November 20, 2008	5,882,353	2.50	5,823,530
	8,051,080	$2.19	$ 6,479,288

Exercise Price

Balance, August 31, 2003 (audited)

7,288,260

1.00

Issued

5,882,353

2.50

Exercised

(2,244,000)

0.54

Balance, June 30, 2004 (unaudited)

10,926,613

1.90

Summary of warrants outstanding at June 30, 2004:

Expiry Date

Number of Warrants

Exercise Price

Amount (*)

August 3, 2004

600,000

$0.50

108,000

August 18, 2004

2,275,533

1.25

500,617

July 22, 2005

2,168,727

1.35

650,618

November 20, 2008

5,882,353

2.50

5,823,530

10,926,613

$1.90

7,082,765

(*) Black-Scholes valuation

DESERT SUN MINING CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Stated in Canadian Dollars - Unaudited)

Thirteen Months Ended September 30, 2004

STOCK OPTIONS

The following summarizes the stock option activity during the period:

Number of

	Number of Options	Weighted Ave. Exercise Price
Balance, August 31, 2003 (audited)	3,133,497	$ 0.81
Exercised during the period	(422,500)	0.57
Granted during the period	5,247,499	1.56
Balance, September 30, 2004 (unaudited)	7,958,496	$ 1.30

Weighted Ave.

Options

Exercise Price

Balance, August 31, 2003 (audited)

3,133,497

0.79

Exercised during the period

(422,500)

0.58

Granted during the period

4,247,499

1.65

Balance, June 30, 2004 (unaudited)

6,958,496

1.33

The Company has a stock option plan (the "Plan") which is restricted to directors, officers, key employees and consultants of the Company. The number of common shares subject to options granted under the Plan (and under all other management options and employee stock purchase plans) is limited to 8,500,000 common shares in the aggregate, and with respect to any one optionee, to 5% of the number of issued and outstanding common shares of the Company at the date of the grant of the option. Options issued under the Plan may be exercised during a period determined by the board of directors, which cannot exceed five years.

Effective January 21, 2004, unless determined otherwise by the Board of Directors, all options granted under the Plan will vest and become exercisable immediately.

As of September 30, 2004, the following options to acquire common shares were outstanding:

Expiry Date	Number of Options	Exercise Price ($)
July 11, 2007 September 16, 2007 September 16, 2007 September 16, 2007 February 4, 2008 April 23, 2008 July 2, 2008 July 23, 2008 July 25, 2008 September 22, 2008 October 21, 2008	665,000 42,000 132,000 132,000 1,289,997 225,000 100,000 75,000 50,000 2,150,000 400,000 50,000 185,000 1,362,499 100,000 1,000,000	0.38 0.40 0.60 0.80 1.00 1.00 1.00 1.10 1.35 1.62 1.65 1.95 1.57 1.70 1.60 1.20
November 17, 2008 December 11, 2008 December 22, 2008 April 7, 2009
September 20, 2009
	7,958,496	1.30

DESERT SUN MINING CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Stated in Canadian Dollars - Unaudited)

~~Ten~~Thirteen Months Ended ~~June~~September 30, 2004

STOCK OPTIONS (Continued)

As of June 30, 2004, the following options to acquire common shares were outstanding:

Expiry Date

Number of Options

Exercise Price

($)

July 11, 2007

665,000

0.38

September 16, 2007

42,000

0.40

September 16, 2007

132,000

0.60

September 16, 2007

132,000

0.80

February 4, 2008

1,289,997

1.00

April 23, 2008

225,000

1.00

July 2, 2008

100,000

1.00

July 23, 2008

75,000

1.10

July 25, 2008

50,000

1.35

September 22, 2008

2,150,000

1.62

October 21, 2008

400,000

1.65

November 17, 2008

50,000

1.95

December 11, 2008

185,000

1.57

December 22, 2008

1,362,499

1.70

April 7, 2009

100,000

1.60

6,958,496

1.33

STOCK OPTION COMPENSATION ADJUSTMENT

During the ~~ten~~thirteen months ended ~~June~~September 30, 2004, 45,247,499 stock options were issued to directors, officers and consultants of the Company.

A summary of the options granted and the value attributed to them are as follows:

(i)

2,150,000 stock options exercisable at $1.62 and expire September 2322, 2008. Expected dividend yield 0%, expected volatility 78%, risk - free interest rate of 4.0% and an expected life of 5 years. Value assigned to the 2,150,000 stock options was $2,279,000.

(ii)

400,000 stock options exercisable at $1.65 and expire October 2221, 2008. Expected dividend yield 0%, expected volatility 78%, risk - free interest rate of 4.0% and an expected life of 5 years. Value assigned to the 400,000 stock options was $432,000.

(iii)

50,000 stock options exercisable at $1.95 and expire November 17, 2008. Expected dividend yield 0%, expected volatility 78%, risk - free interest rate of 4.0% and an expected life of 5 years. Value assigned to the 50,000 stock options was $64,000.

(iv)

185,000 stock options exercisable at $1.57 and expire December 11, 2008. Expected dividend yield 0%, expected volatility 78%, risk - free interest rate of 4.0% and an expected life of 5 years. Value assigned to the 185,000 stock options was $190,550.

DESERT SUN MINING CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Stated in Canadian Dollars - Unaudited)

Ten Months Ended June 30, 2004

STOCK OPTION COMPENSATION ADJUSTMENT (continued)

(v)

1,362,499 stock options exercisable at $1.70 and expire December 22, 2008. Expected dividend yield 0%, expected volatility 78%, risk - free interest rate of 4.0% and an expected life of 5 years. Value assigned to the 1,362,499 stock options was $1,512,374.

(vi)

100,000 stock options exercisable at $1.60 and expire April 7, 2009. Expected dividend yield 0%, expected volatility 78%, risk - free interest rate of 4.0% and an expected life of 5 years. Value assigned to the 100,000 stock options was $104,600.

(vii)

1,000,000 stock options exercisable at $1.20 and expire September 20, 2009. Expected dividend yield 0%, expected volatility 78%, risk - free interest rate of 4.0% and an expected life of 5 years. Value assigned to the 1,000,000 stock options was $784,000.

The Black-Scholes valuation for the above mentioned stock options was expensed in the statement of operations.

8.23

DESERT SUN MINING CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Stated in Canadian Dollars - Unaudited)

Thirteen Months Ended September 30, 2004

CONTRIBUTED SURPLUS

Amount (*)

($)

Balance, August 31, 2003 (audited)

428,419

Options exercised during the period

(35,000)

Options granted during the period

4,582,524

Balance, June 30, 2004 (unaudited)

4,975,943

Included in contributed surplus are the following valuations regarding stock and compensation options:

Expiry Date

Expiry Date	Number of Options	Exercise price	Amount (*)
		( $)	($)
July 22, 2005	227,272	1.35	179,545
February 4, 2008	250,000	1.00	77,500
April 23, 2008	175,000	1.00	47,250
July 23, 2008	75,000	1.10	19,124
September 22, 2008	2,150,000	1.62	2,279,000
October 21, 2008	400,000	1.65	432,000
November 17, 2008	50,000	1.95	64,000
December 11, 2008	185,000	1.57	190,550
December 22, 2008	1,362,499	1.70	1,512,374
April 7, 2009	100,000	1.60	104,600
September 20, 2009	1,000,000	1.20	784,000
Cancelled options			70,000
Expired of warrants			221,351
			5,981,294

Number of Options

Exercise price

Amount (*)

( $)

($)

July 22, 2005

227,272

1.35

179,545

October 15, 2007

200,000

0.55

39,000

February 4, 2008

350,000

1.00

108,500

April 23, 2008

175,000

1.00

47,250

July 23, 2008

75,000

1.10

19,124

September 22, 2008

2,150,000

1.62

2,279,000

October 21, 2008

400,000

1.65

432,000

November 17, 2008

50,000

1.95

64,000

December 11, 2008

185,000

1.57

190,550

December 22, 2008

1,362,499

1.70

1,512,374

April 7, 2009

100,000

1.60

104,600

5,274,771

4,975,943

(*) Black-Scholes valuation

INCOME TAXES

The estimated taxable income for the period is nil. Tax assets arising from differences in tax values and accounting values have been reduced by an equivalent valuation allowance. The valuation allowance will be adjusted in the period that it is determined that it is more likely than not that some portion or all of the future tax assets will be realized.

For further information on the Company's actual losses for tax purposes, refer to Note 7 of the August 31, 2003 audited financial statements. The benefit of these losses and the estimated loss for the period ended have not been recognized in these unaudited consolidated financial statements.

DESERT SUN MINING CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Stated in Canadian Dollars - Unaudited)

~~Ten~~Thirteen Months Ended ~~June~~September 30, 2004

INCOME TAXES

10.

BASIC AND DILUTED LOSS PER SHARE

Basic loss per share is computed by dividing the loss for the period by the weighted average number of common shares outstanding during the period. Diluted loss per share is calculated using the treasury method and reflects the maximum possible dilution from the potential exercise of stock options and warrants. Diluted loss per share is the same as basic loss per share since the conversion of stock options and warrants would be anti-dilutive.

1110.

RELATED PARTY TRANSACTIONS

All transactions with related parties have occurred in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties.

(a)

Management and administrative services expense includes $ 7597,~~000~~500 (2003 - $ 6790,~~500~~000), which was paid to a company controlled by an officer and director of the Company for administrative services.

(b)

Desert Sun shares its premises with other companies that have common directors. Desert Sun is reimbursed by the related companies for their proportional share of the expenses.

(d)

An officer and director of the Company is a director of VVI.

1211.

OTHER EVENTS

During the period, the Company received regulatory approval to change its year end to December 31, 2004. Accordingly, the Company has reported on the operations for the three and ~~ten~~thirteen months ended ~~June~~September 30, 2004, while comparative results are for the three and ~~nine~~twelve months ended ~~May~~August 31, 2003.

12.

SUBSEQUENT EVENTS

In October 2004, the Company raised $20 million through the issuance of 13,793,103 units at a price of $1.45 per unit. Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant will be exercisable at a price of $2.50 until November 20, 2008.

13.

COMPARATIVE FIGURES

Certain of the comparative figures have been reclassified to conform to the presentation adopted in the current period.

~~FORM 52-1 09FT2~~25

~~CERTIFICATION~~DESERT OFSUN ~~INTERIM~~MINING ~~FILINGS~~CORP. Management’s Discussion and Analysis

~~DURING~~(All ~~TRANSITION~~amounts ~~PERIOD~~stated in Canadian dollars, rounded to the nearest thousand, unless otherwise indicated)

I,Management’s ~~Stan~~discussion ~~Bharti,~~and analysis should be read in conjunction with the ~~President~~Consolidated Financial Statements as well as the Consolidated Annual Financial Statements for the fiscal year ended August 31, 2003, and ~~Chief~~is ~~Executive~~intended ~~Officer~~to provide the reader with a review of ~~Desert~~the ~~Sun~~factors ~~Mining~~that ~~Corp.~~affected the Company’s performance during the three and thirteen month periods ending September 30, ~~certify~~2004 ~~that:~~and those factors reasonably expected to impact on future operations and results.

I, have reviewed the interim filings (as this term is defined in Multilateral Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings) of Desert Sun Mining Corp. (the issuer) for the interim period ending June 30, 2004;

Based on my knowledge, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings; and

Based on my knowledge, the interim financial statements together with the other financial information included in the interim filings fairly present in all material respects the financial condition, results of operations and cash flows of the issuer, as of the date and for the periods presented in the interim filings.

Date:

August 9, 2004

Stan Bharti

President and Chief Executive Officer

FORM 52-109FT2

CERTIFICATION OF INTERIM FILINGS

DURING TRANSITION PERIOD

I, Stephen Woodhead, the Chief Financial Officer of Desert Sun Mining Corp., certify that:

Date:

August 9, 2004

Stephen Woodhead

Chief Financial Officer

DESERT SUN MINING CORP.

Management’s Discussion and Analysis

(All amounts stated/n Canadian dollars, rounded to the nearest thousand, unless otherwise indicated)

Managements discussion and analysis should be read in conjunction with the Consolidated Financial Statements as well as the Consolidated Annual Financial Statements for the fiscal year ended August 31, 2003, and is intended to provide the reader with a review of the factors that affected the Company’s performance during the three and ten month periods ending June 30, 2004 and those factors reasonably expected to impact on future operations and results.

Overview

Desert Sun Mining Corp. (“Desert Sun” or the “Company”) is engaged in the acquisition, exploration and development of mineral properties for the purpose of producing precious metals. The Company’s principal asset is its 100% interest in the Jacobina gold property located in the State of Bahia, in northeastern Brazil. The Jacobina property is currently at the development stage. The common shares of Desert Sun trade on the Toronto Stock Exchange under the trading symbol DSM, ~~and are also quoted over the counter~~ on the ~~Berlin~~American ~~and Frankfurt~~ Stock ~~Exchanges~~Exchange under the symbol ~~DRT,~~DEZ ~~The~~and ~~Company’s~~are ~~shares~~also ~~began~~quoted ~~trading~~over on the ~~American~~counter ~~Stock~~on ~~Exchange~~the ~~(AMEX)~~Berlin onand ~~August~~Frankfurt ~~11,~~Stock ~~2004~~Exchanges under the symbol ~~DEL~~DRT.

Change in the ending date olof Financial Year

Desert Sun has changed its financial year-end from August 31 to December 31. Under Brazilian law, Jacobina ~~Mineracão~~Mineracao e Comercio Ltda. (“JMC”) is required to have a year-end of December 31. As JMC holds a 100% interest in the Jacobina Mine and related exploration properties, Desert Sun’s principal assets, the Company believes that it would be more cost efficient and in the best interests of shareholders for both companies to have the same financial year-end. The Company ~~intends~~has toimplemented ~~implement~~ this change ~~immediately~~ by having a transition year of 16 months, with the last day of the transition year being December 31, 2004,.

Results of Operations

On a consolidated basis, Desert Sun recorded a net loss from operations of $~~543~~1,351,000 in the three months ended ~~June~~September 30, 2004, or 12 ~~cent~~cents per share; compared with $543,000 in the three months ended June 30, 2004, $5,116,000 in the four months ended March 31, 2004, and $835,000 in the three months ended November 30, 2003,. Included in the loss from operations in the ~~second~~three ~~quarter~~months ~~was~~ended aSeptember 30, 2004, the three months ended June 30, 2004 and the four months ended March 31, 2004 were non-cash compensation ~~expense~~expenses of $784,000, $105,000 and $4,478,000 respectively, attributable to options issued to directors, officers, employees and consultants ~~during the seven months then ended (and which vested during the second quarter)~~ as valued in terms of the Black-Scholes option pricing model. ~~In the third quarter this expense amounted to only $105,000.~~ (The assumptions applied for the Black-Scholes option pricing model included an expected dividend yield of 0%, expected volatility of 78%, a risk-free interest rate of 4,.0% and an expected life of five years.) The net loss from operations in the three months, excluding ~~these~~this book ~~entries~~entry, was $~~438~~567,000,; comprising general and administration expenses of $~~628~~647,000 and interest received on cash invested of $~~190~~80,000. Ongoing head office cash expenses, excluding extraordinary consulting fees, performance bonuses and travel expenses not expected to be repeated, are anticipated to beremain in the range of $500,000 to $600,000 per quarter.

In the three months ended ~~June~~September 30, 2004, Desert Sun invested $48.71 million in the acquisition, exploration and development of the Jacobina Mine, compared with $4.7 million in the three months ended June 30, 2004, $1.8 million in the four months ended March 31, 2004 and $6 million in the three months ended November 30, 2003. Expenditure in the first quarter included $5 million to acquire the remaining 49% interest in the Jacobina property from Valencia Ventures Inc. The purchase price of $5 million was satisfied through a cash payment of $2 million and the issuance of 1,851,852 common shares at a price of $1.62 per share.

~~At the Jacobina Mine, the principal activities during the period were as follows:~~26

At the Jacobina Mine, construction and development activities continue at an accelerated rate, slightly under the projected capital budget. The principal activities during the period were as follows:

Mine: ~~Construction~~The ~~and~~dewatering ~~underground~~of ~~activities~~the ~~have~~Jacobina ~~been~~Mine ~~progressing~~was completed in ~~preparation~~April ~~for~~2004. ~~the~~The ~~start-up~~removal of the ~~Jacobina~~previous ~~Mine.~~track ~~The~~haulage ~~dewatering~~system and slashing of the ~~Jacobina~~main ~~Mine~~haulage ~~was~~drifts ~~completed~~to inaccommodate ~~April~~the large haulage trucks have been completed. ~~Installation~~Ramp development has commenced and is ahead of ~~electrical~~schedule. The Jacobina Mine offices, mechanical shop and ~~service~~staff ~~lines~~facilities ~~into~~(cafeteria ~~the~~and ~~mine~~dry) have been completed. ~~The~~and ~~removal~~a ofnew ~~the~~mine ~~track~~service ~~haulage~~water system has been ~~complete~~installed. ~~Slashing~~The ofmain electrical transmission line for the ~~main~~underground ~~haulage~~mining ~~drifts~~area towas ~~accommodate~~activated at the ~~large~~end ~~haulage~~of ~~trucks~~October ~~has~~and ~~been~~a ~~started~~diesel ~~and~~fuel system is ~~scheduled~~being ~~for~~constructed ~~completion~~to inservice ~~September~~the ~~2004~~mine equipment.

Mill process area: All main piping of the milling process circuits has been ~~replaced~~cleaned or ~~cleaned~~replaced. The ball mills have undergone and passed technical inspections. Construction of the foundation for the four new leach tanks, ~~and~~as well as the crusher foundations ~~have~~has started and ~~are~~is scheduled for completion in November 2004. Installation of power and instrumentation is also expected to be substantially completed by the end of November. Tailings lines are being installed to the tailings dam area. A “Commissioning Team” has been established to ensure mill commissioning proceeds smoothly.

Exploration: A diamond drilling program ~~(including assaying)~~ is being conducted within the Jacobina Mine ~~area~~extension; at Morro do Vento, ~~which~~Canavieras isand ~~expected~~Morro todo ~~contribute~~Vento ~~substantially to production in the medium term~~Extension; and in the northern area, which constitutes the “blue sky”. An independent consultant is producing a new resource estimate for Morro de Vento, for which a preliminary environmental review is being initiated to determine requirements and the timetable for permitting for a possible open pit and / or underground operation. A dedicated project manager has been appointed to assume responsibility for analysing and managing the various development projects surrounding the Jacobina Mine.

~~For further information on the nature of the exploration and development expenditure, please refer to note 2 of the financial statements,~~4.

Other: On September 17, 2004 a symbolic “Jacobina Mine Opening” took place that was attended by The Governor of Bahia, The Mayor of Jacobina, The Canadian Ambassador for Brazil and the Ministry of Mines Brasil. The event was very well attended and was widely publicized in Brazil.

For further information on the nature of the exploration and development expenditure, please refer to note 2 of the financial statements.

Significant operating expenses were as follows:

Management and administrative services costs, of $1183,000 74(including bonuses paid upon the achievement of important milestones, of $27,000) were incurred in the three months ended ~~June~~September 30, 2004, compared with $~~428~~174,000 in the ~~four~~three months ended ~~March~~June 3130, 2004, ~~and~~$428,000 (including bonuses of $~~241~~215,000) in the ~~three~~four months ended ~~November~~March 3031, ~~2003.~~2004 ~~Included in the second~~ and ~~first~~$241,000 ~~quarters~~(including ~~were~~ bonuses ~~paid upon the achievement~~ of ~~important milestones, of~~ $~~215,000 and $~~110,000) ~~respectively.~~in Nothe ~~such~~three ~~payments~~months ~~were~~ended ~~made~~November in30, ~~the third quarter~~2003. Also included in the above expense is $2223,000 ($22,000, $30,000 ~~in the second quarter~~ and $23,000 in the ~~first~~previous ~~quarter~~three quarters respectively) paid to a company controlled by a director of Desert Sun, for administrative services. The increase in basic management costs compared with fiscal 2003 is in line with the growth in the Company; with additional staff being added as well as increased time commitments by existing members. These costs will increase in the final quarter with the strengthening of the management team through the appointment of Mr. Humphrey at Chief Executive Officer (see Management Changes).

Investor relations and shareholders’ information, ~~together~~expenses ~~with~~were ~~related Consulting fees, of~~ $95154,000 ~~(four~~in the three months ended ~~March~~September 3130, 2004: ~~$224,000 and~~ (three months ended ~~November~~June 30, ~~2003~~2004: $~~127~~95,000~~) and $19~~,~~000~~ (four months ended March 31, 2004: $~~nil~~224,000 and three months ended November 30, 2003: $~~247~~127,000). ~~respectively~~These inexpenses ~~the three months ended June 30, 2004,~~ relate to a sustained public relations campaign directed to increase awareness of the Company and its project both in North America and Europe. Activities during the period included ~~attendance~~numerous atpresentations ~~trade~~to ~~shows,~~targeted ~~internet based advertising~~audiences, ~~and~~hosting ~~reports in the printed media. The second quarter included the largest single expense, namely the preparation~~ of ~~the~~events ~~annual report ($53,000). The program driving the consulting fee expense~~ in ~~the~~Toronto ~~first quarter is not expected to be repeated.~~

Travel and entertainment costs amounted to $132,000 in the three months ended June 30, 2004, compared with $45,000 and $119,000 in the second and first quarters respectively. The travel and entertainment costs relate principally to the investor relations and marketing activities of management as they seek to educate investors about developments at the Company and raise the necessary finance for its ongoing activities. During the second quarter such activities included an extensive visit to Europe, including Zurich, Geneva and London. Also included in travel costs are corporate visits by directors, management and consultants to the Jacobina Mine.27

~~Office~~ and ~~miscellaneous~~London, ~~expenses~~attendance ~~increased~~at totrade ~~$1 29~~shows,~~000~~ ininternet ~~the~~based ~~three months ended June 30~~advertising, ~~2004,~~and ~~compared~~reports ~~with $54,000~~ in the ~~four~~printed ~~months~~media. ~~ended~~The ~~March~~largest ~~31,~~single ~~2004~~expense ~~and $112,000~~ in the three months ~~ended~~under ~~November~~review ~~30,~~was ~~2003~~the ~~(which~~commissioning ~~included an annual insurance payment~~ of ~~$43,000).~~a ~~Desert~~marketing ~~Sun,~~report ~~together~~on ~~with~~the ~~certain~~Company ~~other public companies who share office space~~ and ~~administrative~~the ~~services,~~Jacobina ~~negotiated~~Mine and ~~upgraded~~related ~~additional~~promotional ~~office~~activities ~~space during the first six months of 2004~~($55,000). ~~The~~Included ~~costs~~in ~~relating~~consulting tofees ~~the~~in ~~expansion of~~ the ~~Toronto~~first ~~office~~quarter ~~were however contained, as the Company~~ is ~~reimbursed~~a byrelated ~~these~~expense ~~other~~($247,000) ~~companies~~that ~~for their proportional share of the expenses. The Toronto office~~ is ~~now~~not ~~fully functional and no further major expenses are~~ expected ~~during~~to ~~the~~be ~~remainder of 2004 in this regard~~repeated.

Consulting fees amounted to some $72,000 in the three months ended September 30, 2004, compared with $20,000 in the three months ended June 30, 2004, $nil in the four months ended March 31, 2004 and $247,000 three months ended November 30, 2003. The fees in the most recent six months were paid to corporate advisors working with the Company in areas such as capital structure, group structure, product sales, etc., while the fees in the first quarter related to investor relations activities that have subsequently been suspended.

Travel and entertainment costs reduced to $74,000 in the three months ended September 30, 2004 from $132,000 in the three months ended June 30, 2004. Related expenditure in the second and first quarters was $45,000 and $119,000 respectively. The travel and entertainment costs relate principally to the investor relations and marketing activities of management as they seek to educate investors about developments at the Company and to the raising of the necessary finance for the development of the Jacobina Mine. The activities during this quarter included trips by management to London and Europe, to New York for the “ringing of the bell” at the American Stock Exchange, as well as trips to Brazil relating to corporate activities such as the symbolic opening of the Jacobina Mine.

Office and miscellaneous expenses were $83,000 in the three months ended September 30, 2004, compared with $129,000 in the three months ended June 30, 2004, $54,000 in the four months ended March 31, 2004 and $112,000 in the three months ended November 30, 2003 (which included an annual insurance payment of $43,000). Desert Sun, together with certain other public companies who share office space and administrative services, negotiated and upgraded additional office space during the first six months of 2004. The costs relating to the expansion of the Toronto office were however contained, as the Company was reimbursed by these other companies for their proportional share of the expenses. The Toronto office is now fully functional and no further major expenses are expected during the remainder of 2004 in this regard.

Summary of Quarterly Results (Stated in Canadian Dollars)

	2004 3rd quarter	2004 2nd quarter	2004 1st quarter	2003 4th quarter	2003 3rd quarter	2003 2nd quarter	2003 1st quarter	2002 4th quarter
	2004 4th quarter	2004 3rd quarter	2004 2nd quarter	2004 1st quarter	2003 4th quarter	2003 3rd quarter	2003 2nd quarter	2003 1st quarter
	June 30, 2004	March 31, 2004	November 30, 2003	August 31, 2003	May 31, 2003	February 28, 2003	November 30, 2002	August 31, 2002
	September 30, 2004	June 30, 2004	March 31, 2004	November 30, 2003	August 31, 2003	May 31, 2003	February 28, 2003	November 30, 2002
	3-months	43-months	34-months	3-months	3-months	3-months	3-months	3-months
Revenue	--	--	--	--	--	--	--	--
Net Loss for the period	~~542~~1,~~864~~350,701	5542,~~116,187~~864	~~834~~5,~~985~~116,187	~~637~~834,~~293~~985	~~441~~637,~~785~~293	~~794~~441,~~973~~785	~~380~~794,~~022~~973	~~103~~380,~~742~~022
Net Loss per share — basic and diluted	0.01	0.09	0.02	0.02	0.01	0.04	0.02	0.01
Net Loss per share – basic and diluted	0.02	0.01	0.09	0.02	0.02	0.01	0.04	0.02

During 2002 and 2003 the Company substantially reorganized its operations; including the appointment of new officers and directors, who began work in earnest on developing the Jacobina concessions in September 2002. Ongoing head office expenses (net losses from operations) are expected to be in the range of $500,000 to $600,000 per quarter, net of extraordinary consulting fees, performance bonuses and unusual travel expenses. Included in the net loss for ~~the~~each ~~three~~quarter ~~months~~of ~~ended~~the ~~June~~2004 ~~30,~~fiscal ~~2004~~year ~~and~~is the ~~four~~following ~~months ended March 31, 2004 are~~ non-cash compensation expenses: offor ~~$104,600~~the ~~and~~three ~~$4,478,000~~months ~~respectively.~~ended ~~These~~September ~~book~~30, ~~entries~~2004: ~~are expenses attributable to options issued to directors~~$784, ~~officers~~000, ~~employees~~for ~~and~~the ~~consultants~~three asmonths ~~valued~~ended inJune ~~terms~~30, of2004: ~~the Black-Scholes option pricing model~~$104,600 ~~Excluding~~and ~~this book entry the net loss~~ for the ~~third and second (~~four~~-month)~~ ~~quarters~~months ~~would~~ended beMarch ~~$438~~31,~~264~~ ~~and~~2004: $~~638~~4,~~263 respectively~~477,924. These book

~~Selected Annual Information~~28

~~(Stated~~entries are expenses attributable to options issued to directors, officers, employees and consultants as valued in ~~Canadian~~terms ~~Dollars~~of the Black-Scholes option pricing model. Excluding this book entry the net loss for the fourth, third and second (four-month) quarters would be $566,701, $438,264 and $638,263 respectively.

InSelected ~~January~~Annual ~~2002,~~Information ~~later~~(Stated ~~revised~~ in ~~May~~Canadian 2002, Desert Sun entered into an option to earn a 51% interest in the Jacobina Mine paleoplacer gold property in Brazil; including the mineral rights, mines and a 4,200 tonne per day processing plant. To earn the 51% interest, the Company agreed to pay $25,000 and spend US$2 million exploring the Jacobina property, prior to December 31, 2004. In September 2002, for cash consideration of $100,000, Desert Sun negotiated an option to acquire the remaining 49% interest by paying $5 million within 90-days of earning the initial 51% interest. In August 2003 the Company acquired and cancelled an outstanding 1,7% Net Smelter Royalty covering the entire Bahia Gold Belt, paying $200,000 as part of its US$2 million obligation. In September 2003 Desert Sun confirmed that it had completed its spending commitment and concurrently exercised its option to acquire the remaining 49% interest in the Jacobina property for $5 million, settled through a cash payment of $2 million and the issue of 1,851,852 common shares at a price of $1.62 per share.Dollars)

	August 31, 2003	August 31, 2002	August 31, 2001

Revenue	--	--	--
Net Loss for the period	2,254,073	125,421	38,569
Net Loss per share – basic and diluted	0.09	0.01	0.00

Total Assets	10,088,156	1,812,288	31,947
Total Long-term Liabilities	--	--	--

Dividends	--	--	--

In January 2002, later revised in May 2002, Desert Sun entered into an option to earn a 51% interest in the Jacobina Mine paleoplacer gold property in Brazil; including the mineral rights, mines and a 4,200 tonne per day processing plant. To earn the 51% interest, the Company agreed to pay $25,000 and spend US$2 million exploring the Jacobina property, prior to December 31, 2004. In September 2002, for cash consideration of $100,000, Desert Sun negotiated an option to acquire the remaining 49% interest by paying $5 million within 90-days of earning the initial 51% interest. In August 2003 the Company acquired and cancelled an outstanding 1.7% Net Smelter Royalty covering the entire Bahia Gold Belt, paying $200,000 as part of its US$2 million obligation. In September 2003 Desert Sun confirmed that it had completed its spending commitment and concurrently exercised its option to acquire the remaining 49% interest in the Jacobina property for $5 million, settled through a cash payment of $2 million and the issue of 1,851,852 common shares at a price of $1.62 per share.

The principal source of cash for use in operations has been the issue of common shares. The Company completed two equity financings in fiscal 2003 for gross proceeds of $9.7 million.

Critical Accounting Estimates

The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of any contingent assets and liabilities as at the date of the consolidated financial statements, as well as the reported amounts of revenues earned and expenses incurred during the period. The critical accounting estimates are related to recoverability of exploration expenditures, exploration property, plant and equipment and contingencies. Actual results could differ from these estimates.

Property acquisition costs and related direct exploration and development expenses are deferred until the properties are placed into production, sold or abandoned. These deferred costs will be amortized on the unit-of-production basis over the estimated useful lives of the properties following the commencement of production, or written-off ~~lithe~~if the properties are sold, allowed to lapse or abandoned,. The cost of exploration property, plant and equipment includes any cash consideration paid, and the fair market value of shares issued on the acquisition of property interests. The recorded amounts represent actual expenditures incurred and are not intended to reflect present or future values.

The Company reviews capitalized costs on its property interests on a periodic, or annual, basis and will recognize an impairment in value based upon current exploration results and upon management’s assessment of the future probability of profitable revenues from the property or from the sale of the property. Management’s assessment of the property’s estimated current fair market value may also be based upon a review of other property transactions that have occurred in the same geographic area as that of the property under review.

As a result of the exercise of its option to acquire the remaining 49% interest of the Jacobina property from Valencia Ventures Inc. (“‘‘VVI”’’) in September 2003, Desert Sun owns 100% of the Jacobina Mine and associated explorations properties, subject to a 5% net profit interest in favour of a third party. To give effect to this acquisition, Desert Sun has acquired a 100% interest in the equity of Jacobina ~~Mineração~~Mineragao e Comercio Ltda. (~~fiacobinau~~“Jacobina”), the Brazilian company that holds the mining and exploration licences, fixed property, and associated plant and equipment. Management believes that Jacobina has substantial tax losses in Brazil that may be carried forward to offset future taxable income from the Jacobina Mine, but cannot reasonably estimate these losses and the resulting future income tax assets at this time. Had the tax losses been determinable at this time, a valuation allowance equal to the total amount of any future income tax assets would have been recorded to offset any such benefit. In terms of the agreement under which the Company acquired Jacobina, VVI provided certain indemnities to Desert Sun for outstanding liabilities. These amounts include taxes payable to the Brazilian Federal and State authorities, for which formal refinancing arrangements have now been concluded; liabilities to third parties, which are in the process of being settled; as well as labour and health related claims by former employees, which are being contested in court. Arrangements have been made by VVI to settle all of the past taxes payable, totaling some $1.6 million, over periods of up to 15 years. A conservative estimate of the claims relating to silicosis, for the period prior to the Company’s acquisition of Jacobina, and for which VVI has indemnified Desert Sun is US$1.6 million. It is management’s belief that the labour related claims are substantially without merit and Desert Sun and VVI intend to defend the actions vigorously. VVI has consistently met its obligations to the Company under this indemnity.

In terms of the agreement under which the Company acquired Jacobina, VVI provided certain indemnities to Desert Sun for outstanding liabilities. These amounts include taxes payable to the Brazilian Federal and State authorities, for which formal refinancing arrangements have now been concluded; liabilities to third parties, which are in the process of being settled; as well as labour and health related claims by former employees, which are being contested in court. Arrangements have been made by VVI to settle all of the past taxes payable, totaling some $1.6 million, over periods of up to 15 years. A conservative estimate of the claims relating to silicosis, for the period prior to the Company’s acquisition of Jacobina, and for which VVI has indemnified Desert Sun is US$1.6 million. It is management’s belief that the labour related claims are substantially without merit and Desert Sun and VVI intend to defend the actions vigorously. VVI has consistently met its obligations to the Company under this indemnity.

Technical Update

PREPRODUCTION UPDATE

The dewatering of the Jacobina Mine, ~~from~~and ~~which~~rehabilitation, with the ~~bulk~~removal of ~~planned~~the ~~production~~track ~~will~~and ~~come,~~ties ~~has~~from ~~been~~the ~~completed.~~previous ~~Underground~~haulage ~~services~~system ~~are~~in ~~being~~preparation ~~installed~~for tothe ~~accommodate~~new ~~the~~truck ~~mechanized~~haulage ~~equipment~~system, and slashing of ~~access~~the ~~areas has begun. The~~ main haulage drifts tohas ~~the~~been ~~Jacobina~~completed. ~~mine~~Ramp ~~have~~development ~~been~~has ~~rehabilitated,~~commenced ~~with~~and ~~the~~is ~~removal~~ahead of ~~the~~schedule ~~track~~ and ~~ties~~underground ~~from~~services ~~the~~are ~~previous~~being ~~haulage~~installed ~~system~~to inaccommodate ~~preparation for~~ the ~~new~~mechanized ~~truck haulage system~~equipment. The Jacobina Mine central offices, ~~are~~mechanical ~~being~~shop ~~repaired~~ and ~~upgraded.~~staff ~~Progress~~facilities is(cafeteria ~~advancing~~and ~~well~~dry) inhave ~~preparation~~been ~~for~~repaired ~~the start of operation activities, including the installation of telephone~~ and ~~internet service and the rehabilitation of the main mine transformer sub-station~~upgraded. Technical inspections of the production facility and mill have been completed, and Engineering and Planning has commenced for the initial mining stopes.

~~The~~Construction ~~Company~~of ~~has~~the ~~finalized~~foundation ~~an order~~ for ~~mobile~~the ~~equipment~~four ~~from~~new ~~Atlas~~leach ~~Copco~~tanks, ~~which~~as ~~has~~well ~~agreed~~as ~~to provide financing for this equipment over a period of 24-months. Delivery of~~ the ~~units~~crusher ~~will take place starting September 2004~~foundations, ~~with~~has ~~the~~started ~~final loader being delivered in January 2005, Atlas Copco will establish a Parts Warehouse at Jacobina~~ and ~~has~~is ~~entered~~scheduled ~~into~~for acompletion ~~Full~~in ~~Service~~November ~~Agreement with the Company~~2004. ToInstallation ~~ensure~~of ~~that~~power ~~Desert~~and ~~Sun~~instrumentation ~~meets~~is ~~its~~expected ~~production timetable, Atlas Copco has agreed~~ to ~~provide appropriate bridge units, to~~ be ~~delivered~~substantially tocompleted ~~Jacobina~~by inthe ~~July~~end ~~and~~of ~~August 2004~~November. ~~The~~Electrical ~~initial~~transformer ~~bridge~~installation ~~units~~has ~~have~~started ~~arrived on site~~ and ~~are~~electrical ~~operating.~~cable ~~Later~~trays ~~these~~and ~~units~~ducts ~~will~~are bebeing ~~available~~installed asthroughout ~~backup~~the ~~units~~mill. inTailings ~~support~~lines ofare ~~Atlas~~being ~~Copco’s~~installed ~~guarantees,~~to ~~and~~the ~~thereafter~~tailings ~~can~~dam bearea. ~~released~~A or“Commissioning ~~retained~~Team” onhas abeen ~~rental~~established ~~basis~~to atensure ~~the~~mill ~~option~~commissioning ofproceeds ~~Desert Sun~~smoothly.

InThe ~~June~~first ~~2004,~~of the ~~State~~new ~~government~~mobile ofequipment ~~Bahia,~~ordered ~~Brazil~~from ~~provided~~Atlas ~~tangible~~Copco ~~support~~has been shipped, for ~~the~~which ~~Jacobina~~financing ~~Mine~~was ~~through~~provided ~~the~~by ~~signing~~supplier ofover a ~~“Protocol~~period of ~~Intentions”~~24-months. ~~The~~Atlas ~~financial~~Copco ~~incentives~~is ~~contained~~establishing ina ~~the~~Parts ~~Protocol~~Warehouse ~~enhance~~at ~~the viability of the~~ Jacobina ~~Mine,~~and Ahas ~~key~~entered ~~influencing~~into ~~factor~~a ~~the~~Full ~~State~~Service ~~government~~Agreement ~~considered~~with ~~in issuing~~ the ~~Protocol~~Company. ofAppropriate ~~Intentions’~~bridge isequipment, ~~the~~provided ~~fact~~by ~~that~~Atlas ~~the~~Copco, ~~reopening~~has ofarrived ~~the~~on ~~Jacobina~~site ~~Mine~~and ~~will~~is ~~strongly~~operating ~~promote~~well. ~~economic growth~~Later, ~~the~~these ~~generation~~units ofwill ~~much-needed~~be ~~high-quality~~available ~~jobs,~~as ~~and~~backup ~~social~~units ~~development~~ in ~~central-northern~~support ~~Bahia. In recognition~~ of ~~the~~Atlas ~~multi-million~~Copco’s ~~dollar~~guarantees ~~investment~~and ~~being~~thereafter ~~made~~can bybe ~~Desert~~released ~~Sun~~or inretained ~~reopening~~on ~~the~~a ~~mines,~~rental ~~under~~basis ~~its~~at ~~Constitution and State laws~~ the ~~State~~option of ~~Bahia granted to~~ Desert Sun ~~the following incentives:~~.

*30

~~Deferment~~In June 2004, the State government of Bahia, Brazil provided tangible support for the ~~ICMS~~Jacobina ~~(sales~~Mine ~~and~~through ~~services~~the ~~tax)~~signing onof ~~all~~a ~~importations~~“Protocol of ~~fixed~~Intentions”. ~~assets~~The ~~required~~financial ~~for~~incentives contained in the ~~project~~Protocol asenhance ~~well~~the asviability ~~deferment~~of the Jacobina Mine. A key influencing factor the State government considered in issuing the ‘Protocol of ~~ICMS~~Intentions’ onis ~~acquisitions~~the fact that the reopening of ~~assets~~the ~~manufactured~~Jacobina Mine will strongly promote economic growth, the generation of much-needed high-quality jobs, and social development in central- northern Bahia;. In recognition of the multi-million dollar investment being made by Desert Sun in reopening the mines, under its Constitution and State laws the State of Bahia granted to Desert Sun the following incentives:

~~The~~Deferment ~~State~~ of ~~Bahia~~the ~~will~~ICMS ~~engage~~(sales and ~~support~~services ~~Desert~~tax) ~~Sun~~on inall ~~negotiations~~importations ~~with the Federal and Municipal Agencies seeking the reduction~~ of ~~75%~~fixed ofassets ~~the~~required ~~“Internal Revenue Tax” (Corporate income Tax)~~ for the ~~next ten years~~project, ~~according~~as towell ~~the~~as ~~legislation~~deferment of ~~the~~ICMS ~~Northeast~~on ~~Brazil~~acquisitions ~~Development~~of ~~Superintendency~~assets ~~(SUDENE)~~manufactured in Bahia;

The State of Bahia will engage and support Desert Sun in negotiations with the Federal and Municipal Agencies seeking the reduction of 75% of the “Internal Revenue Tax” (Corporate Income Tax) for the next ten years, according to the legislation of the Northeast Brazil Development Superintendency (SUDENE); - The State of Bahia will assist the Company in obtaining all necessary Federal, State, and Municipal licenses; and

The State of Bahia will assist the Company in obtaining financing through public financing agencies: the Social and Economic Development Bank of Brazil (BNEDES), the State of Bahia Development Bank (DESENBAHIA) and the Northeast Bank of Brazil (BNB).

~~State~~In ~~Governor~~July ~~Mr.~~2004 ~~Paulo~~the ~~Souto,~~Company inreceived athe ~~recent~~final ~~meeting~~operating inand ~~Salvador~~environmental ~~with~~permits required to re-start mining operations at the ~~President~~Jacobina ~~and~~Mine. ~~Senior~~In ~~Management~~addition to the License of Operation for the mine, Desert Sun ~~stated:~~has ~~“The~~been ~~reopening~~issued oflicenses ~~the~~for ~~Jacobina~~water ~~Mines~~usage ~~will~~and ~~bring~~water todischarge, ~~this~~permits ~~economically~~for ~~depressed~~the ~~region~~purchase and use of ~~our~~cyanide ~~State~~in ~~much~~the ~~needed~~metallurgical ~~support~~process, inand ~~terms~~permits offor ~~jobs~~buying and ~~social~~use ~~security~~of explosives in the mining operations. ~~The~~Co-operation ~~State~~with ofthe Bahia ~~strongly~~State ~~supports~~government ~~such~~and ~~investments~~the Departamento Nacional de Produgao Mineral (DNPM) throughout this process has been excellent.”

~~Bahia’s~~Renovation ~~Secretary~~of olthe ~~Mines~~premises to be used for the independent laboratory for analysis of production ores, ~~Mr.~~definition ~~Otto~~drill ~~Alencar~~core, ~~while~~metallurgical ~~approving~~samples and water for environmental monitoring at the ~~paving~~Jacobina Mine, to be designed, commissioned and operated by ~~the~~Lakefield ~~State~~Geosol ofLaboratorios ~~the~~Ltda. 11is ~~kilometre~~nearing ~~road~~completion. ~~that~~All ~~connects~~work procedures, training and quality systems of the mine site tolaboratory will be based on the ~~city~~Lakefield ofGeosol ~~Jacobina~~model, ~~added:~~which ~~“The~~is ~~technical~~ISO ~~expertise~~9001:2000 ~~and~~compliant. Once the ~~commitment~~mine tolaboratory ais ~~modern~~fully ~~operation~~operational, ~~that~~Lakefield Geosol and Desert Sun ~~brings~~will toapply ~~Jacobina~~for ISO certification. Analysis of exploration drill core and rock samples will continue to ~~Bahia~~be ~~gives~~done usat the ~~assurance~~Lakefield ofGeosol laboratory in Belo Horizonte. Lakefield Geosol Laboratorios Ltda. is a ~~successful~~joint venture company between SGS Lakefield Research Limited, part of the SGS Group, which provides global testing and consulting services to the broad mining ~~operation~~and metals sector from offices in ~~terms~~Canada, Chile, Australia, South Africa and Brazil, and Geosol Geologia e Sondagems Ltda of ~~economic~~Brazil. SGS Lakefield has considerable experience worldwide, and ~~regional~~specifically ~~growth~~in Brazil, ~~social~~in ~~well~~the ~~being~~development of on-site mine laboratories. Clients in Brazil include Companhia Vale do Rio Doce (CVRD) one of the largest integrated mining, smelting and ~~sound~~manufacturing ~~environmental~~companies ~~practices~~in the world.” Quality is continually monitored via regular proficiency and inter-laboratory tests.

In July 2004 the Company received the final operating and environmental permits required to re-start mining operations at the Jacobina Mine. In addition to the License of Operation for the mine, Desert Sun has been issued licenses for water usage and water discharge, permits for the purchase and use of cyanide in the metallurgical process, and permits for buying and use of explosives in the mining operations. Co-operation with the Bahia State government and the Departamento Nacional de Producao Mineral (DNPM) throughout this process has been excellent.

Renovation of the premises to be used for the independent laboratory for analysis of production ores, definition drill core, metallurgical samples and water for environmental monitoring at the Jacobina Mine, to be designed, commissioned and operated by Lakefield Geosol Laboratorios Ltda. is nearing completion. All work procedures, training and quality systems of the mine site laboratory will be based on the Lakefield Geosol model, which is ISO 9001:2000 compliant. Once the mine laboratory is fully operational, Lakefield Geosol and Desert Sun will apply for ISO certification. Analysis of exploration drill core and rock samples will continue to be done at the Lakefield Geosol laboratory in Belo Horizonte. Lakefield Geosol Laboratorios Ltda. is ajoint venture company between SGS Lakefield Research Limited, part of the SGS Group, which provides global testing and consulting services to the broad mining and metals sector from offices in Canada, Chile, Australia, South Africa and Brazil, and Geosol Geologia e Sondagems Ltda of Brazil. SGS Lakefield has considerable experience worldwide, and specifically in Brazil, in the development of on-site mine laboratories. Clients in Brazil include Companhia Vale do Rio Doce (CVRD) one of the largest integrated mining, smelting and manufacturing companies in the world. Quality is continually monitored via regular proficiency and inter-laboratory tests.

EXPLORATION UPDATE

Desert Sun is conducting a significant exploration program in 2004 that is focused on exploring several new targets identified in the 2003 drill program, most notably Morro do Vento, Canavieiras Mine and the northern “blue sky” areas, as well as on increasing the mineral resources in the main production area at ~~João~~Joao Belo. To June 30, 2004, 102 holes totaling 24,702 metres had been completed. The Company expects to complete this phase of the exploration drilling program, which will comprise a total of 30,000 metres, by September 2004.

~~Drilling~~At atthe Morro do Vento ~~continues to confirm the potential to outline a large mineral resource amenable to low cost bulk mining techniques. The~~ target ~~Intermediate~~area reef package at Morro do Vento is consistently about 60 to 70 metres wide and extends along the full two kilometres strike length with extensive garimpos (free miner workings). Because of the geometry of the zone, and its location on the east flank of a hill, the zone could be open pit mined with minimal waste rock removal. Morro do Vento is located ~~about~~ 1.5 kilometres ~~from~~north of the processing plant ~~and~~additional ~~existing~~drill ~~mines, and approximately nine kilometres from the town of Jacobina. Highlights of~~ results ~~released~~received in ~~this~~September ~~third~~2004 ~~quarter~~further ~~include~~support ~~1.03~~the ~~grams~~possibility ~~gold per tonne over a true width~~ of ~~61.8~~outlining ~~metres, including~~ a ~~higher~~large ~~grade~~mineral ~~intersection~~resource ofamenable ~~2.27~~to ~~grams~~low ~~gold~~cost ~~per~~bulk ~~tonne~~mining ~~over a true width of 9~~techniques.8 ~~metres~~To indate, ~~hole~~80 ~~MVT-339~~holes ~~and~~totaling ~~0.95~~13,700 ~~grams gold per tonne over a true width of 58.5~~ metres ~~with~~have abeen ~~higher~~completed ~~grade~~at ~~portion~~Morro ofdo 2Vento.30 ~~grams~~The ~~gold~~target ~~per~~Intermediate ~~tonne~~reef ~~over~~package ais ~~true~~consistently ~~width~~about of60 ~~20.7 metres in hole MVT-347. Desert Sun plans~~ to ~~complete~~70 ~~an additional 3,500~~ metres ofwide ~~drilling~~and inextends ~~the~~along ~~quarter to September 2004 to complete definition drilling at approximately 50 metre centres in~~ the ~~core~~full ~~section~~2 ofkilometre ~~the deposit for a~~ strike length ofwith ~~approximately~~extensive ~~900~~garimpos ~~metres~~(free tominers aworkings). ~~depth~~Work ofhas ~~150~~begun toon ~~200~~estimating ~~metres~~a ~~below surface. The~~ new ~~drill~~mineral ~~information~~resource ~~combined~~for ~~with~~Moro ~~historical~~do ~~data~~Vento, which will form the basis for ~~estimation of~~ a ~~new~~preliminary ~~mineral~~evaluation ~~resource~~study toby beSRK ~~completed in the fall of 2004.~~

The first stage of metallurgical tests to be carried out by SGS Lakefleld Research on samples from diamond drill holes on the Morro do Vento open pit target, to determine recoveries using conventional milling, reported that the overall gold extraction for the Master composite was 96.4% with a range of 95.7% to 97,0%. No significant difference in extraction was observed for the tests conducted at shorter, 12 hour, and longer, 48 hour, leach times. Sample selection and the metallurgical test process were reviewed by Bruce Ferguson, P.Eng. consulting metallurgist of Kappes, Cassidy & Associates. All samples were originally prepared and tested for gold by tire assay by Lakefield Geosol in Brazil. Desert Sun is continuing further test work to determine the heap leach potential for Morro do Vento.31

AtConsulting. ~~the~~This ~~Canavieiras~~study ~~Mine,~~will ~~located~~examine ~~three~~both ~~kilometres~~open ~~north~~pittable ofand ~~the~~bulk ~~4,200~~underground ~~tonnes~~mining ~~per~~possibilities ~~day~~with processing ~~plant that is currently being refurbished~~ by ~~Desert~~conventional ~~Sun~~and inheap ~~preparation~~leach ~~for~~methods. ~~production,~~The ~~the~~resource ~~mineralized~~model ~~horizons are located within a fault-bounded block that~~ is ~~approximately~~currently ~~1.2~~being ~~kilometres~~updated ~~long~~ and ~~400~~a ~~metres~~mineral ~~wide.~~resource Inestimate ~~contrast~~incorporating toall ~~the~~new ~~main~~drill ~~conglomerate~~data ~~trend,~~will ~~Canavieiras~~be iscompleted ~~characterized~~ by ~~moderate~~Mr. ~~folding~~John ~~resulting~~Reddick, inP.Geo. ~~structural upgrading~~ of ~~gold~~Reddick ~~mineralization~~Consulting ~~in the reefs~~Ltd. ~~The mine was last worked~~ in ~~1998,~~collaboration ~~and~~with ~~past~~Micon ~~production totaled 458,247 tonnes at a grade of 8~~International.65 gPreliminary ~~AuIt.~~metallurgical ~~Excellent~~testing ~~results~~to ~~have~~assess ~~been returned on drilling of~~ the ~~“MU~~heap ~~and~~leach LUpotential ~~reefs”~~will ~~located~~be ~~about~~carried 50out toat ~~100~~CETEM, ~~below~~an ~~the~~independent ~~old~~metallurgical ~~workings.~~laboratory ~~Highlights of results released~~ in ~~this~~Rio ~~third~~de ~~quarter include 6~~Janeiro,19 ~~grams~~Brazil ~~gold~~under ~~per tonne over a 5.7 metre width in~~ the MUsupervision ~~reef and 3.68 grams gold per tonne over a true width~~ of 11Mr.7 ~~metres~~Bruce ~~in the LU reef intersected in hole CAN-28. This hole also intersected 5~~Ferguson,85 ~~grams gold per tonne over a true width of 8~~P.1Eng. ~~metres~~consulting inmetallurgist ~~the~~with ~~eastern~~Kappes ~~extension~~Cassiday ~~of the combined Piritoso~~ and ~~Liberino~~Associates. ~~reefs~~Positive metallurgical ~~from~~tests ~~which all~~ of ~~the previous production was obtained~~96. ~~Hole CAN-21 intersected~~ 8~~.47~~% ~~grams~~ gold ~~per~~recovery ~~tonne~~were ~~over~~obtained afor ~~core~~conventional ~~length~~processing ofby 13SGS Lakefield.0 ~~metres~~It ~~in the Hollandez reef which~~ is ~~just~~expected ~~above~~that the ~~old~~study ~~workings.~~will ~~These~~be ~~results~~completed ~~confirm~~by ~~that~~the ~~there~~end isof ~~excellent~~this ~~potential to outline significant higher grade resources in several zones within the Canavieiras Mine~~year.

~~Initial drilling results at João Belo have indicated the potential for a major depth extension.~~ The ~~João~~following ~~Belo~~are ~~Mine~~highlights ~~contains~~from ~~measured~~holes and indicated mineral resources of 9,119,000 tonnes at 2.34 grams gold per tonne containing 684,800 ounces of gold and an inferred mineral resource of 8,574,000 tonnes at 2.74 grams gold per tonne containing 764,100 ounces of gold as reviewed and reported on by Micon International in ~~August 2003, Hole JBA-298 intersected~~ the ~~main~~central ~~“LMPC”~~900 ~~reef~~metre ~~which~~long ~~was~~core ~~mined~~of at the João Belo Mine about 365 metres below the 605 level, which is the lowest level reached by the ramp in the mine, This hole returned 2.12 grams gold per tonne over 19.9 metres true width including a higher grade section of 2.70 grams gold per tonne over a true width of 11.7 metres. The zone is open at depth and likely extends to at least one kilometre below surface. Drilling will continue on this target ~~in the third calendar quarter.~~zone:

Desert Suns wholly owned Bahia Gold Belt property now totals 131,539 hectares, which includes 5,996 hectares in the mining lease, 97,476 hectares of granted exploration concessions and 28,067 of filed applications for exploration concessions. The property now covers a strike length of 155 kilometres over the Jacobina Group sedimentary rocks, which underlie the Serra do Jacobina mountains. The Company is conducting a major exploration program along the Belt, which has outlined four major target areas for more detailed followup. These targets include a 45+ kilometre strike length extension of the Serra do Corrego Formation conglomerates, which hosts the existing mines and the already-~~identified~~ (14,802,000 tonnes at 2.86 g Au/t containing) 1.36 million ounces measured and indicated mineral resource and (29,487,000 tonnes at 2.62 g Au/t containing) 2.47 million ounces inferred mineral resource on less

~~than 10% of the property~~1.01 ~~Regional~~grams ~~and~~g ~~detailed~~Au/t ~~geological~~over ~~mapping,~~a ~~prospecting,~~true ~~and~~width ~~rock and soil geochemical sampling by the Company in the Pindobacu area 55 kilometres north~~ of ~~Jacobina,~~54.3 ~~has identified gold-bearing quartz veins~~metres, ~~stockworks~~including ~~and extensive silicified zones in~~ a ~~thick~~higher ~~package~~grade ofintersection ~~fuchsite-bearing, locally oxidized (after pyrite) quartzites and metaconglomerates that may be the northern and separate extension~~ of ~~the Serra do Corrego Formation~~2.65 ~~This~~g ~~target~~Au/t ~~area~~over ~~is close to~~ a ~~major~~true ~~north-northeast~~width striking fault contact zone with the Archean Mundo Novo greenstone belt. Other target areas include the Pindobacu Outlier which extends for 23 kilometres along strike with numerous gold garimpos (free miner workings) and the Maravilha Fault zone which extends for a strike length of ~~60 kilometres~~8.6 Desert Sun plans to carry out a 2,000 metre drill program in the third calendar quarter to test targets identified from soil geochemical sampling by Desert Sun and a recently completed induced polarization geophysical survey by Fugro-LASAGeomag.metres;

0.93 g Au/t over a true width of 80.5 metres, including a higher grade intersection of 2.04 g Au/t over 11.0 metres true width; and

0.88 g Au/t over a true width of 65.9 metres, including 2.93 g Au/t over a true width of 10.2 metres.

In October 2004 the Company received additional underground diamond drill results from the Canavieiras area at Jacobina, Brazil. The drilling was carried out to test three major target areas: conglomerate reefs located between 50 to 100 metres below the existing mine workings; the southeast extension of the reefs that were previously mined; and reefs above the mine workings. The former Canavieiras Mine is located three kilometres north of the processing plant and is located in a block bounded by faults that is approximately 1.2 kilometres long and 400 metres wide. To date, 41 holes totaling 5,368 metres have been completed. As a result of the drilling program, the strike length of the reefs below the old workings was extended to at least 300 metres and high grade intersections continue to be returned from the reef extension southeast of the old workings. Both targets continue to be open along strike. The Company is currently compiling the new results and will be completing an updated mineral resource estimate as well as outlining a detailed plan for future drilling.

Highlights of the program included:

Target Reefs below old workings:

2.71 grams gold per tonne (g Au/t) over a true width of 22.2 metres, including 4.51 g Au/t over a true width of 9.8m at the top of the reef and 4.41 g Au/t over a true width of 3.2m at the base;

2.85 g Au/t over a true width of 27.5 metres, including 4.63 g Au/t over a true width of 13.4 metres. A separate reef lower in the same hole returned 2.06 g Au/t over a true width of 22.3 metres, including 5.05 g Au/t over a true width of 6.2 metres; and

8.77 g Au/t (7.25 g Au/t with highs cut to 30 g/t) over a true width of 3.9 metres.

Target Reefs extending zones previously mined:

16.13 g Au/t (15.63 g Au/t cut) over a true width of 2.5 metres; - 20.79 g Au/t over 0.7 metres;

13.83 g Au/t over a true width of 1.0 metre; and

3.77 g Au/t (1.97 g Au/t cut) over a true width of 6.0 metres.

Target Reefs above old workings:

8.09 g Au/t over a true width of 1.1 metres; and - 4.08 g Au/t over 2.0 metres.

Desert Sun’s wholly owned Bahia Gold Belt property now totals 131,539 hectares, which includes 5,996 hectares in the mining lease, 97,476 hectares of granted exploration concessions and 28,067 of filed applications for exploration concessions. The property now covers a strike length of 155 kilometres over the Jacobina Group sedimentary rocks, which underlie the Serra do Jacobina mountains. The Company is conducting a major

exploration program along the Belt, which has outlined four major target areas for more detailed followup. These targets include a 45+ kilometre strike length extension of the Serra do Corrego Formation conglomerates, which hosts the existing mines and the already-identified (14,802,000 tonnes at 2.86 g Au/t containing) 1.36 million ounces measured and indicated mineral resource and (29,487,000 tonnes at 2.62 g Au/t containing) 2.47 million ounces inferred mineral resource on less than 10% of the property. Regional and detailed geological mapping, prospecting, and rock and soil geochemical sampling by the Company in the Pindobagu area 55 kilometres north of Jacobina, has identified gold-bearing quartz veins, stockworks and extensive silicified zones in a thick package of fuchsite-bearing, locally oxidized (after pyrite) quartzites and metaconglomerates that may be the northern and separate extension of the Serra do Corrego Formation. This target area is close to a major north-northeast striking fault contact zone with the Archean Mundo Novo greenstone belt. Other target areas include the Pindobagu Outlier which extends for 23 kilometres along strike with numerous gold garimpos (free miner workings) and the Maravilha Fault zone which extends for a strike length of 60 kilometres. Desert Sun is carrying out a 2,000 metre drill program to test targets identified from geological mapping, sampling and soil geochemistry by Desert Sun as well as an induced polarization geophysical survey by Fugro-LASAGeomag.

Financial Conditions, Liquidity and Capital Resources

As at ~~June~~September 30, 2004 Desert Sun had cash and equivalents totaling $2315.8 million and no debt. The Company has not yet begun production on any of its properties, and therefore does not yet have any cash flow from operations. The principal source of cash for use in operations has been from the issue of common shares.

In September 2003 the Company issued 8,~~11 5~~115,000 common shares at a price of $1.38 per share for total gross proceeds of $11.2 million pursuant to an underwriting agreement with Sprott Securities Inc., Griffiths McBurney & Partners, Octagon Capital Corporation and Pacific International Securities Inc. In November 2003 Desert Sun raised a further $20 million through the issuance of 11,764,707 units at a price of $1.70 per unit. Each unit consisted of one common share and one-half of one common share purchase warrant. Each whole warrant is exercisable at a price of $2.50 for a period of five years. These warrants trade on the Toronto Stock Exchange under the symbol DSM.WT. The underwriting syndicate for the offering was led by Sprott Securities Inc. and included Griffiths McBurney & Partners and CIBC World Markets Inc. The proceeds from these offerings are being used to fund the development of the Jacobina project in Brazil and for working capital purposes.

In ~~June~~October 2004 ~~the~~Desert ~~Company~~Sun ~~signed~~completed a ~~letter~~bought ~~agreement~~deal ~~with Quest Capital Corp. (“Quest”) for the last stage of the~~ financing ~~required~~pursuant ~~for reactivating the Jacobina Gold Mines in Brazil. The financing is subject~~ to ~~the usual conditions~~which, ~~including~~as ~~due diligence and definitive documentation, and the facility is expected to be in place by the end of August 2004. The letter agreement provides for~~ a ~~secured~~result ~~bridge loan~~ of upthe tounderwriters ~~$15~~fully ~~million,~~exercising ~~repayable~~their 12over-~~months~~allotment ~~from drawdown of the loan. Desert Sun may repay the loan at any time prior to maturity~~option, ~~without~~it ~~notice~~raised or$20 ~~penalty,~~million ~~and~~through ~~may extend~~ the ~~term~~issuance of ~~the loan for an additional 12-months~~13,793,103 ~~subject~~units ~~to the payment of an extension bonus. Interest will be~~ at ~~the~~a ~~rate~~price of $1%.45 per ~~month,~~unit. ~~payable~~Each onunit ~~the~~consists ~~last business day~~ of ~~each~~one ~~month.~~common ~~Upon~~share ~~the~~and ~~signing~~one-half of ~~the~~one ~~binding~~common ~~agreement,~~share ~~the Company will also issue Quest three million warrants, subject to regulatory approval, to~~ purchase ~~common~~warrant ~~shares~~of inDesert ~~the~~Sun. ~~capital~~Each ofwhole ~~the~~warrant ~~Company~~will ~~for~~be ~~and~~exercisable at ana ~~exercise~~ price of $2.50 ~~per~~until ~~share at any time up to~~ November 20, 2008. The warrants towill betrade ~~issued are of the same class as those listed~~ on the Toronto Stock Exchange under the symbol “DSM,.WT”. The ~~loan~~underwriting ~~will~~syndicate befor ~~made~~the tooffering ~~Desert~~was ~~Sun~~led ~~Mining~~by ~~Corp.~~Sprott ~~and~~Securities ~~will~~Inc. ~~be secured over the shares, property~~ and ~~assets~~included ofCIBC ~~its~~World ~~wholly-owned~~Markets ~~Brazilian subsidiary~~Inc., ~~Jacobina~~GMP ~~Mineracao e Comercio Ltda. Sprott~~ Securities ~~Inc~~Ltd. ~~acted~~and asSalman anPartners ~~advisor to Desert Sun on this transaction~~Inc. ~~Quest~~Proceeds isfrom athe ~~publicly~~offering ~~traded~~will ~~merchant~~be ~~banking~~used ~~organization~~to ~~that~~fund ~~focuses~~the ondevelopment ~~providing~~of ~~financial~~the ~~services,~~Jacobina ~~specifically~~Mine ~~bridge~~in ~~loans,~~Brazil ~~to small~~ and ~~mid-cap~~for ~~companies~~working incapital ~~North America~~purposes. ~~Quests~~The ~~primary~~Company ~~business~~has isdecided ~~providing~~not ~~asset~~to ~~backed~~proceed ~~commercial~~with ~~bridge~~the ~~loans~~previously ofnegotiated ~~between~~ $~~500,000~~15 tomillion ~~$20,000,000~~credit tofacility ~~publicly~~with ~~listed~~Quest ~~companies,~~Capital ~~generally operating in mining, oil and gas, manufacturing, real estate, and technology industries~~Corp.

Management Changes

~~The~~In ~~Company~~September is2004 ~~pleased~~Desert toSun ~~announce~~announced that itMr. ~~has~~Bruce ~~appointed~~Humphrey ~~Kurt~~would ~~Menchen~~join asthe ~~Vice~~Company as President, ~~Business~~Chief ~~Development,~~Executive ~~Brazil.~~Officer ~~One~~and a member of ~~Mr.~~the ~~Menchen’s~~Board ~~first~~of ~~tasks~~Directors. ~~will~~Mr. beStan toBharti ~~establish~~was ~~the~~appointed ~~mineral~~Chairman ~~resource~~of ~~for~~the ~~Morro~~Board doof ~~Vento~~Directors and ~~conduct~~Mr. ~~appropriate~~Gerry ~~economic~~McCarvill ~~evaluations~~was onappointed ~~the~~Vice ~~project~~Chairman. ~~using~~Both ~~both~~Messrs. ~~conventional~~Bharti and ~~heap~~McCarvill ~~leach~~will ~~recovery~~continue ~~methods.~~to ~~The~~be ~~studies~~active ~~are~~in ~~expected~~the togrowth beof ~~completed~~the ~~by year end~~Company. Mr. ~~Menchen~~Humphrey isjoined ~~also~~the ~~responsible~~Company ~~for~~in ~~all~~mid ~~liaison~~October ~~with Municipal, State and Federal agencies, and well as the local community~~2004.

Mr. Humphrey is a mining engineer with 30 years experience, having worked for several major mining companies and mining contractors in a variety of engineering, operations and executive management positions. In his most recent position, Mr. Humphrey was Senior Vice President and Chief Operating Officer of Goldcorp Inc. His responsibilities included the re-development, start-up and operation of the high grade Red Lake Mine. Mr. Humphrey’s considerable experience in operating significant gold mines strengthens Desert Sun as it enters this all important stage of building a world class mining company.

Labour, safety and training

At the end of September 2004 the Company had 155 personnel on site at the Jacobina Mine. This was supplemented by 372 contractors for a total of 527 individuals on site. Since the programs began in June 2004, safety training hours have totaled 1,227 including 723 hours in September. There has been one “lost time” accident to date, in September, resulting in five lost days.

Accounting Standards

Desert Sun follows Canadian generally accepted accounting policies. In line with accepted industry practice, the Company has adopted the policy of deferring property specific acquisition, exploration and development costs. Deferred costs relating to properties that are relinquished, or where continued exploration is deemed inappropriate are written off in the year such assessment is made. If Desert Sun adopted a policy of expensing all exploration costs, the Company’s asset base, shareholders’ equity, and loss from operations would be materially different.

Effective September 1, 2002, Desert Sun adopted the new CICA standard for accounting for stock-based compensation. Desert Sun applied the pro forma disclosure provisions of the new standard to options granted to directors, officers and employees on or after September 1, 2002, and applied the fair value method for options granted as compensation for services rendered to the Company other than in the course of employment. For options granted in fiscal years beginning on or after January 1, 2004 the CICA Handbook now requires that compensation for option awards to employees be recognized in the financial statements at fair value. The Company, as permitted by CICA Handbook Section 3870, has adopted this section prospectively for new option awards granted on or after September 1, 2003. Accordingly, a ~~lair~~fair value compensation expense has been recorded for the three months ended September 30, 2004, the three months ended June 30, 2004 and the four and seven months ended March 31, 2004 for awards granted (and vested) in those periods.

Uncertainties and Risk Factors

Desert ~~Suns~~Sun’s primary objectives are the development of the Jacobina Mine and the exploration of the Bahia Gold Belt. Instability in the market price of gold may affect interest in resource properties and the development of and production from such properties. In the absence of cash flow from operations, Desert Sun relies on the capital markets (equity and potentially, debt) to fund its operations. ~~The ongoing exploration and successful development of the Jacobina Mine will require additional financing.~~ There can be no assurance that ~~adequate~~additional funding will be available, or available under terms favourable to the Company.

The Company’s operations are subject to all the hazards and risks normally incident to the exploration, development and mining of resource deposits, any of which could result in damage to life or property, environmental damage and possible legal liability for any or all damage. Whether a resource deposit will ultimately be commercially viable depends on a number of factors, including the particular attributes of the deposit such as the ~~deposits~~deposit’s size; its proximity to existing infrastructure; financing costs and the prevailing prices for the applicable resource. Also of key importance are government regulations, including those relating to prices, taxes, royalties, land tenure, land use, the importing and exporting of resource and production plant and equipment, and environmental protection. The effects of these factors cannot be accurately predicted, but any combination of them may impede the development of a deposit or render it uneconomic.

For a more complete description of the uncertainties and risk factors facing the Company, please refer to Management’s Discussion and Analysis of the audited annual financial statements for the year ended August 31, 2003l34

Corporate Governance

On June 4, 2004 the Board of Directors of Desert Sun adopted a Code of Conduct for the Company. All directors and senior personnel are required to familiarize themselves with the Code of Conduct, signing a copy of the Code on an annual basis to confirm that they understand the terms, and conduct themselves at all times in accordance with the letter and spirit of the Code. The Board of Directors has also adopted Board Committee Mandates and a Director’s Position Description, which clearly sets out what is required of the directors in exercising their powers and discharging their duties. A Risk Matrix, highlighting the major operational, financial and regulatory risks faced by the Company, has been approved by the Board of Directors and will be assessed on a quarterly basis.

Outlook

The Company is on target to be in production by early 2005, and producing at aan annualized steady state rate of at least ~~100~~102,000 ounces per year by the second quarter of 2005. ~~Orders~~Construction ~~for~~and development activities at the ~~mechanized~~Jacobina ~~equipment,~~Mine ~~which~~are ~~include~~proceeding ~~finance~~on ~~terms,~~schedule ~~have~~and ~~been~~under ~~confirmed~~the ~~with~~projected ~~major~~capital ~~equipment~~budget. ~~suppliers~~The Brazilian Real has remained relatively stable in relation to the Canadian Dollar during the fiscal year to date, depreciating 7.7% to C$1.00 = R$2.35

SNC Lavalin completed a Feasibility Study for Desert Sun in September 2003, which confirmed the economics of bringing the Jacobina Mine back into production and outlined a mineral reserve of 10,746,000 tonnes grading 2.20 g Au/t containing 758,600 ounces of gold. SRK Consulting extended the SNC Lavalin Feasibility Study mine plan (2004 to 2011) an additional 11 years to early 2023 by scheduling the potentially “mineable tonnes” resulting from the conversion of inferred resources based on historical data. SRK considered that Jacobina had the potential to deliver “economically mineable tonnes” containing 2 million recoverable ounces of gold, based on the work done at the time of the study. A key objective of the expanded exploration program is to upgrade the present inferred mineral resources to the indicated category to achieve these potential recoverable ounces. It must be cautioned that the SRK study is not adequate to definitely confirm the economics of the inferred mineral resources and that there is no guarantee that further drilling will upgrade the inferred resources. Based on the SNC Feasibility Study, which used a gold price of US$350 per ounce [approximately US$400 per ounce at the time of this report] and a Real to US$ exchange rate of 3:1 [approximately R$2.82 : US$1.00 at the time of this report], the mine can be in production by 2005, producing at a rate of 102,000 ounces per year at an average cash cost of US$189 per ounce.

study is not adequate to definitely confirm the economics of the inferred mineral resources and that there is no guarantee that further drilling will upgrade the inferred resources. Based on the SNC Feasibility Study, which used a gold price of US$350 per ounce [approximately US$400 per ounce at the time of this report] and a Real to US$ exchange rate of 3:1 [approximately $3.07 US$1.00 at the time of this report], the mine can be in production by 2005, producing at a rate of 102,000 ounces per year at an average cash cost of US$189 per ounce.

Forward-looking Statements

The Interim Report, including this MD&A, contains certain forward-looking statements ~~related~~including ~~to,~~“forward-looking ~~among~~statements” ~~other~~within ~~things~~the meaning of the United States Private Securities Litigation Reform Act of 1995, ~~expected~~which ~~future~~are ~~events~~prospective and ~~the~~reflect ~~financial~~management’s ~~and~~expectations ~~operating~~regarding Desert Sun’s future growth, results of ~~the~~operations, ~~Company~~performance and business prospects and opportunities. Forward-looking statements are subject to inherent risks and uncertainties including, but not limited to, market and general economic conditions, changes in regulatory environments affecting the Company’s business and the availability and terms of financing. Other risks are outlined in the Uncertainties and Risk Factors section of the Management’s Discussion & Analysis for the year ended August 31, 2003,. Consequently, actual results and events may differ materially from those included in, contemplated or implied by such forward looking statements for a variety of reasons.

~~August~~November 910, 2004

FORM 52-109FT2

CERTIFICATION OF INTERIM FILINGS
DURING TRANSITION PERIOD

I, Bruce Humphrey, the President and Chief Executive Officer of Desert Sun Mining Corp., certify that:

I, have reviewed the interim filings (as this term is defined in Multilateral Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings) of Desert Sun Mining Corp. (the issuer) for the interim period ending September 30, 2004;

Date: November 10, 2004

“Bruce Humphrey”

Bruce Humphrey

President and Chief Executive Officer

FORM 52-109FT2

CERTIFICATION OF INTERIM FILINGS
DURING TRANSITION PERIOD

I, Stephen Woodhead, the Chief Financial Officer of Desert Sun Mining Corp., certify that:

Date: November 10, 2004

“Stephen Woodhead”

Stephen Woodhead

Chief Financial Officer

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Form 6-K to be signed on its behalf by the undersigned, thereunto duly authorized.

Desert Sun Mining Corp. ~~-- SEC File No. 000-29610~~

(Registrant)

~~Date~~Dated: ~~October~~May 2016, ~~2004 By~~2005 Signed: /s/ ~~Bruce~~Tony ~~Humphrey_____________________________~~Wonnacott Tony Wonnacott, Corporate Secretary

~~Bruce Humphrey, President/CEO/Director~~38

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