Cumberland and KIA Announce Agreement in Principle for Inuit Impact and Benefits Agreement for Meadowbank Gold Project, Nunavut

Business Wire, Feb 22, 2006

VANCOUVER, British Columbia -- CUMBERLAND RESOURCES LTD. (TSX:CLG)(AMEX:CLG) and the Kivalliq Inuit Association (KIA) are pleased to announce that Cumberland and the KIA have reached an Agreement in Principle with respect to an Inuit Impact and Benefits Agreement (IIBA) relating to Cumberland's 100% owned Meadowbank gold project located 70 kilometres north of Baker Lake, Nunavut. A signing ceremony of the formal agreement between Cumberland and the KIA will be held next month in Baker Lake.

The IIBA satisfies the requirements of Article 26 of the Nunavut Land Claims Agreement and outlines the benefits that will be provided to Inuit as a result of the proposed 12 years of development, operation and closure of the Meadowbank gold project. The IIBA will ensure that local employment, training and business opportunities arising from all phases of the project are accessible to the Kivalliq Inuit. The IIBA also outlines the special considerations and compensation that Cumberland will provide for Inuit regarding traditional, social and cultural matters.

In reaching this agreement, Mr. Kerry Curtis, President and CEO of Cumberland commented, "We are very pleased by the commitment and dedication shown by the KIA in reaching this agreement. This agreement will help fulfill Cumberland's goal of ensuring that the Meadowbank gold project provides a favourable economic situation for both Cumberland and the Kivalliq Inuit. Settling the terms of the IIBA brings us one step closer to our goal of proceeding with the development of the Meadowbank gold project. The agreement with the KIA is a key milestone for Cumberland and the Kivalliq Inuit as Cumberland enters the Final Hearings in the permitting process."

"The agreement clearly indicates the support of the KIA for the development of a project that will provide a significant contribution to the economy of the Kivalliq region, particularly in the Community of Baker Lake," Mr. Tongola Sandy, President of KIA stated. "The IIBA is an important step in the regulatory process that will ensure Inuit benefit from the Meadowbank gold project. We look forward to working with Cumberland on the implementation of the IIBA."

About the KIA

The Kivalliq Inuit Association represents the interests of the Inuit of the Kivalliq region. Directly controlled by the regional Inuit population, the KIA invests in subsidiary corporations and represents collective Inuit political interests. The primary operating location is Rankin Inlet. Other locations include Arviat, Baker Lake, Chesterfield Inlet, Coral Harbour, Repulse Bay and Whale Cove.

About Meadowbank

The Meadowbank project is host to Canada's largest pure gold open pit reserves estimated at 2.9 million ounces1. Cumberland has completed a bankable feasibility study and is advancing the Meadowbank project towards open pit production. In December 2005 the Company announced further improvements to the project as a result of independent due diligence completed for bank financing. Revisions now forecast gold production at 330,000 ounces of gold per year over an 8.1 year mine life with an estimated total cash cost of US$201 per ounce. Peak production is forecast at 451,000 ounces produced at an estimated cash cost of US$155 per ounce. Final hearings in the permitting process are scheduled for March 27, 2006 and terms for bank financing are currently being finalized. Operations from three, shallow open pits are planned to commence in 2008 provided the permitting process is completed in early 2006.

Meadowbank Gold Project Open Pit Mineral Reserve
(Proven & Probable)(1)
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                                  Au Grade          Contained
Open Pit            Ore (t)           (g/t)            Ounces
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Portage         11,010,000             4.5          1,590,000
Vault            8,010,000             3.4            870,000
Goose            2,310,000             5.7            420,000
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Total           21,320,000             4.2          2,890,000
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Note: 95% mining recovery and contact dilution applied.

Cumberland is a well financed mineral exploration and development company. The Company has completed a bankable feasibility study on the Meadowbank gold project (100% interest) in Nunavut and is advancing the project towards production. The Company also holds a 22% carried to production interest in the Meliadine West gold project and a 50% interest in the Meliadine East gold project, both located in Nunavut. The shares of Cumberland are traded on the Toronto Stock Exchange and the American Stock Exchange under the symbol CLG.

(1) Meadowbank Gold Reserves (Fourth Quarter 2005) - The open pit mineral reserves have been prepared in accordance with NI 43-101. Dr. Mike Armitage, Managing Director of SRK Consulting (UK) Limited is the independent Qualified Person responsible for preparation of stated reserves.