Mosquito Consolidated Gold Mines Limited Announces Agreement With SMH Capital Inc.

VANCOUVER, BRITISH COLUMBIA, May 20 (MARKET WIRE) --
Mosquito Consolidated Gold Mines Limited (Mosquito) (TSX VENTURE: MSQ)
announces today that it has entered into a formal agreement with SMH
Capital Inc., the broker-dealer subsidiary of Sanders Morris Harris Group
(NASDAQ: SMHG) to participate in the SMH Capital Market & Liquidity
Services program designed to provide high-quality, small-cap companies
with access to a broader potential investor base.

Mosquito, an exploration mining company, is among the first corporations
to benefit from the new SMH Capital program which will provide in-depth
communication with the investment community, trading monitoring,
capital-markets advice, in-depth qualitative reports and monitor
Mosquito's shareholder base.

The relationship with SMH Capital will be incorporated into a program of
investor awareness and project financing of the portfolio of properties
currently under development by Mosquito.

This Press Release is subject to Regulatory approval.

On Behalf of the Board Mosquito Consolidated Gold Mines Limited

Brian McClay, President

About Mosquito Consolidated Gold Mines Limited

Mosquito Consolidated Gold Mines Limited is a mining exploration and
development company with a diverse portfolio of high potential precious
and base metals projects, located in low-political-risk environments in
North America and Australia. The Company's primary focus is developing
its Idaho-based CUMO project, the world's largest un-mined open pit
molybdenum deposit, and its Nevada-based Pine Tree
copper-molybdenum-silver project. For more information, please visit
www.mosquitogold.com.

About SMH Capital Investment Banking

SMH Capital Investment Banking Group is a division of SMH Capital Inc.
(member FINRA/SIPC) the broker-dealer and largest subsidiary of Sanders
Morris Harris Group (NASDAQ: SMHG). SMH Capital Investment Banking Group
is a full-service investment bank providing middle-market companies with
private placements and public offerings of equity and debt securities, as
well as financial-advisory services in connection with mergers and
acquisitions, restructuring and recapitalizations. SMH Capital Investment
Banking Group provides a full spectrum of investment banking services,
including raising capital, research coverage, creating liquidity, trading
and market making, merger and acquisition advisory services, sales
support, and investor conferences. For more information go to
www.smhib.com.

This news release includes certain statements that express management's
expectation or estimates of future performance and may be deemed
"forward-looking statements". These forward-looking statements include
plans, estimates, forecasts and statements as to management's
expectations regarding the CUMO Project. These forward-looking statements
involve assumptions, risks and uncertainties and actual results may vary
materially. For these reasons shareholders should not place undue
reliance on such forward-looking information.

United States residents are cautioned that some of the information that
may be published by Mosquito may not be consistent with United States
Securities and Exchange Commission disclosure rules and may be materially
different from what the Company is permitted to disclose in the United
States and therefore United States residents should not rely on such
information.

news release was prepared by management who takes full responsibility
for its contents. The TSX Venture Exchange does not accept responsibility
for the adequacy or accuracy of this release.

Contacts:
Mosquito Consolidated Gold Mines Limited
Brian McClay
President
(604) 689-7902
(604) 689-7816 (FAX)
Website:www.mosquitogold.com

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