NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

TORONTO, ONTARIO, August 26, 2004: Inter-Citic Minerals ("Inter-Citic" or "the Company") announced today the closing of the previously announced private placement of 2,545,000 units at a price of C$1.00 per unit for gross proceeds of C$2,545,000. Each unit consists of one common share plus one share purchase warrant, with each full warrant entitling the holder to purchase, at any time until August 26, 2006, one common share of the Company at a price of $1.10. This represents an amendment to the warrant exercise terms which were originally announced on June 16, 2004. The common shares and warrants comprising the units are subject to a four-month hold period that expires on December 26, 2004.

Salman Partners Inc.acted as the lead agent for the offering. The Company paid the agents and certain other intermediaries cash commissions totaling 6% of the gross proceeds raised from the private placement, together with a number of common share purchase warrants of the Company equal to 10% of the number of units sold. Each warrant so issued has the same expiry and exercise price as the warrants comprising the units.

This financing increases Inter-Citic's consolidated cash position to approximately $4,500,000.00. Proceeds of the issue will be directed toward accelerating the drill program at the Dachang gold project in Qinghai, China and further field work at the Zalantun gold project in Inner Mongolia, China. Both of these projects are described in technical reports in accordance with NI 43-101 "Standards of Disclosure for Mineral Projects" which were filed in March 2004.

"Completing this financing during a difficult market environment allows us to focus on our fall drill program at Dachang, and we look forward to updating shareholders as we advance our projects," commented Jim Moore, President and CEO.

About Inter-Citic

Toronto-based Inter-Citic Minerals Inc. is a gold exploration and development company with properties in the People's Republic of China. The Company has strategic partnerships with several large financially strong and established groups in China to facilitate investment in China for both Western and Chinese partners. Inter-Citic is listed on the TSX Venture Exchange trading under the symbol ICI.

FOR FURTHER INFORMATION PLEASE CONTACT:

Inter-Citic Mineral Technologies Inc., James J. Moore, President & CEO, (416) 363-5055

or

Flora Wood or Sean Stokes, (416)-364-2266, 1-877-600-6001 Business Development Linear Capital Corp.

The TSX Venture Exchange has not reviewed and does not accept, responsibility for the adequacy or accuracy of the content of, this news release.