Minefinders Corporation Ltd.

Minefinders Corporation Ltd. (AMEX: MFN) should soon be initiating production of gold and silver at its Dolores Project, near Chihuahua, Mexico. The project is scheduled to produce about 127,000 ounces of gold and 4.8 million ounces of silver annually for a mine life of 14 years. The project has additional resources at the north and south ends of the proposed pit which are being evaluated for inclusion in the proposed mine operation. In addition, there are substantial high grade mineralized areas below the pit and running parallel to the existing deposit that have good opportunity for accessing underground. We believe there are a number of scheduled items in the next 12 months which could result in substantial appreciation of the Company’s stock:

• Dolores project reaching full production by 2Q08
• Resource expansion at Dolores and other projects
• Decision to commence mill expansion at Dolores

Minefinders is unhedged and exposed to increases in metal prices. We believe the Dolores project is well conceived and has good likelihood of reaching full production by mid-2008. We are initiating coverage of MFN with a Buy rating and 12–month price target of $20.00 per share.

Investment Thesis
Minefinders Corporation Ltd. (the “Company” or ”Minefinders”)(AMEX: MFN) is close to producing gold and silver at its Dolores Project near Chihuahua, Mexico (Figure 1). Careful development and project management should allow the project to move to full commercial production by mid-2008, satisfying expectations of long-term shareholders.

We anticipate that ongoing developments at Dolores should further improve project economics. This will include construction of a flotation mill, significantly improving gold and silver recoveries from high-grade ore, and additional drilling and development extending the open pit and unlocking underground potential at Dolores which should result in increasing and upgrading total mineable resources.