Minefinders Provides 2009 Third Quarter Results, Updates Production Guidance and Settles Binding Arbitration

VANCOUVER, BRITISH COLUMBIA, Nov 09 (MARKET WIRE) --
Minefinders Corporation Ltd. (TSX: MFL)(NYSE Amex: MFN) today announced
the Company's financial and operating results for the third quarter and
nine months ended September 30, 2009 (all amounts in US dollars).

The Company also updated its production guidance for 2009 and announced
the settlement of the binding arbitration previously reported in May 2008.

Third quarter 2009 financial summary, compared with a year earlier:

- Revenue of $24.1 million compared to none;

- Loss of $0.7 million or $0.01 per share compared to a loss of $6.8
million or $0.14 per share;

- Positive operating cash flow of $3.2 million compared to negative
operating cash flow of $3.7 million;

- Sale of 24,689 gold-equivalent ounces compared to none.

Nine months 2009 financial summary, compared with a year earlier:

- Revenue of $47.4 million compared to none;

- Loss of $8.6 million or $0.15 per share compared to a loss of $20.0
million or $0.40 per share;

- Positive operating cash flow of $0.1 million compared to negative
operating cash flow of $8.4 million;

- Sale of 69,545 gold-equivalent ounces compared to none.

During the third quarter and after September 30, 2009 the Company
reported:

- An increase in crusher throughput to 16,000 tonnes per day in September
and a record average of 17,700 tonnes per day in October 2009 as a result
of screen remediation work conducted in July and August;

- Completion of the relocation of the old Dolores village allowing access
to the Phase II area of the deposit where pre-stripping activities are
underway;

- Completion of an updated resource model for the La Bolsa property with
the NI 43-101 technical report filed on October 21, 2009; and

- Completion of a bought deal financing for gross proceeds of CDN$66.0
million during the third quarter and closing of the over-allotment option
in October 2009 for additional gross proceeds of CDN$3.7 million.

"The relocation of the old Dolores village and the increase in crusher
throughput to planned rates represent the resolution of the two most
significant issues affecting the efficient operation of the mine,
production of gold and silver and cash operating costs," said Mark
Bailey, President and Chief Executive Officer. "With crusher throughput
now at planned rates and pre-stripping well advanced in the heart of the
Dolores deposit, production and cash costs should improve markedly going
forward. In combination with our enhanced working capital, the
pre-feasibility studies on the addition of a mill at Dolores and a mine
at La Bolsa underway and concurrent drilling programs at Dolores and La
Bolsa, Minefinders is in a strong position to execute on its production
and growth objectives."

Issues Resolved

Production and cash operating costs in the nine-month period and
particularly in the third quarter have been negatively affected by lower
than planned crusher throughput and mining activities restricted to the
relatively lower grade north end of the deposit.

The crusher throughput has trended under plan due to fabrication issues
with one of the three tertiary screens and other less significant
commissioning deficiencies. These problems have negatively affected
production all year and have prevented crusher throughput from achieving
the planned average rate of 18,000 tonnes per day. During the third
quarter, the Company initiated a comprehensive assessment and repair
program that temporarily reduced crusher throughput in July and August to
an average of just 13,000 tonnes per day.

With the completion of repairs in August, crushing throughput increased
significantly in September to more than 16,000 tonnes per day. Subsequent
to September 30, 2009, crusher throughput increased to near the planned
rate of 18,000 tonnes per day. The remaining screen repairs are scheduled
for early 2010 and Minefinders expects crusher throughput to average
planned rates during the fourth quarter of 2009 and forward.

Mining through 2009 has been restricted to the north end of the deposit
due to a delay in relocating the old Dolores village, which was blocking
access to the higher grade heart of the Dolores deposit. This
necessitated mining in relatively low-grade areas during 2009 to date and
particularly in July and August. With the successful relocation of the
old village during the quarter, pre-stripping was initiated to expose the
higher-grade central dome of the deposit. Pre-stripping is well advanced
and first access to this higher grade ore is expected this month with the
associated higher production and lower cash costs commencing in the
second quarter of 2010.

Production Guidance Update

Minefinders has revised its previously reported 2009 production outlook
to approximately 1.4 million ounces of silver and 80,000 ounces of gold
at cash operating costs of between $520 and $530 per gold-equivalent
ounce assuming a 71 to one silver to gold ratio.

The production outlook revision is a result of the negative effect of the
lower than expected crusher throughput in July and August and lower gold
and silver grades realized during the period. With the increase in
crusher throughput subsequent to quarter end and advancement of
pre-stripping to expose the higher-grade central dome area of the
deposit, production is expected to increase going forward with an
associated reduction in operating cash costs.

Settlement of Binding Arbitration

In October 2009, Minefinders reached a settlement with Ausenco
International Pty Ltd. of Brisbane, Australia and a related company,
Ausenco Americas LLC ( collectively "Ausenco") concerning the previously
reported binding arbitration process that commenced in May 2008. The
settlement agreement resolves and terminates all other claims, causes of
action, rights and other remedies that Minefinders and Ausenco have or
may have against each other that were contemplated by the arbitration.

As a result of the settlement, Minefinders will receive a net amount of
cash and will not have to pay an accrued amount payable to Ausenco. The
net recovery will be recorded as a reduction to mineral property, plant
and equipment in the Company's December 31, 2009 year-end financial
statements.

Financial and Operating Results

Minefinders commenced pre-commercial production of gold and silver in
November of 2008. Financial and operating results reflect the transition
from pre-commercial operations to the commencement of commercial
production at the Dolores Mine effective May 1, 2009. The commencement of
commercial production is largely responsible for the improved financial
results for the third quarter and first nine months of 2009 compared with
a year earlier.

At September 30, 2009, the Company had $73.8 million in cash and cash
equivalents and net working capital of $90.2 million. The net proceeds
from the production and sale of gold and silver, working capital on hand
and funds available through its revolving credit facilities will allow
the Company to fund its current and projected cash requirements.

Third quarter 2009 operations compared with second quarter 2009 (1)

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Q3 2009 Q2 2009
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Ore crushed and stacked (tonnes per day) 14,000 15,000
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Gold production (oz) 18,799 23,336
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Silver production (oz) 318,878 419,946
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Sales proceeds $24.1 million $26.0 million
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Gold equivalent volume sold (oz) (2) 24,689 27,704
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Cash operating cost per gold equivalent
ounce sold (2) $587 $527
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Total cash cost per gold equivalent
ounce sold (2) $616 $552
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Gold volume sold (oz) 19,305 22,108
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Average realized gold price (per oz) $974 $937
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Silver volume sold 349,248 369,532
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Average realized silver price (per oz) $15.18 $14.19
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(1) The operating comparisons are for the second quarter of 2009 because the
Company had no mining operations in the third quarter of 2008.

(2) Using a ratio of 65 ounces of silver to one ounce of gold in Q3 and 66
ounces of silver to one ounce of gold in Q2.

During the third quarter, Minefinders completed a bought deal
financing for net proceeds to the Company of $56.7 million with closing
of the over-allotment option in October 2009 for additional net proceeds
of $3.3 million. Minefinders also repaid $10 million of its revolving
credit facility by September 30, 2009 and repaid a further $31.5 million
subsequent to September 30, 2009.

The complete unaudited third quarter 2009 financial statements and
accompanying Management's Discussion and Analysis are available at
www.sedar.com or on the Company's website at www.minefinders.com.
Conference Call

The Company has scheduled an investor conference call for 1 p.m. Pacific
Time (4 p.m. Eastern Time) on Tuesday, November 10, 2009, to discuss its
financial and operating results for the third quarter ended September 30,
2009.

To access the conference call by telephone, please call 416-340-8061 from
overseas or the Greater Toronto Area, or dial toll-free 1-866-225-0198
from elsewhere in North America. An audio replay will be available until
November 17, 2009 by calling toll-free in North America at 1-800-408-3053
or 416-695-5800 for Toronto based or overseas callers. Please enter
passcode 2310546.

About Minefinders

Minefinders is a precious metals mining and exploration company and
operates the multi-million ounce Dolores gold and silver mine in Mexico.
The Company continues its exploration efforts on other prospective
projects in Mexico to build a quality pipeline of precious metals
projects for future growth.

Non-GAAP Measures

This release includes non-GAAP performance measures of "total cash cost
per ounce" and "operating cash cost per ounce". Operating and total cash
cost per ounce have been determined by the Company on a sales basis.
Operating and total cash cost per ounce are measures typically reported
by mining companies but are non-GAAP measures without standardized
meaning. The Company follows the Gold Institute standard in determining
operating and total cash cost per ounce. This information is intended to
provide additional information and should not be considered in isolation
or as a substitute for measures of performance prepared in accordance
with GAAP.

Forward Looking Statements

This release contains certain "forward-looking statements" and
"forward-looking information" as defined under applicable Canadian and
U.S. securities laws. Forward-looking statements generally can be
identified by the use of forward-looking terminology such as "may,"
"will," "expect," "intend," "estimate," "anticipate," "believe,"
"continue" or similar terminology. Forward-looking statements are based
on forecasts of future results, estimates of amounts not yet determinable
and assumptions that, while believed by management to be reasonable, are
inherently subject to significant business, economic and competitive
uncertainties and contingencies. Certain of the statements made herein by
Minefinders are forward-looking and subject to important risk factors and
uncertainties, both known and unknown, many of which are beyond the
Company's ability to control or predict. Known and unknown factors could
cause actual results to differ materially from those projected in the
forward-looking statements. Those factors are described or referred to
under the heading "Risk Factors" of Minefinders' Annual Information Form
for the year ended December 31, 2008 and under the heading "Risks and
Uncertainties" of Minefinders' Management's Discussion and Analysis for
the year ended December 31, 2008 and quarter ended September 30, 2009,
all of which are incorporated by reference herein and are available on
SEDAR at www.sedar.com. Although the Company has attempted to identify
important factors that could cause actual actions, events or results to
differ materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results not to
be as anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
forward-looking statements. Minefinders does not undertake to update any
forward looking statements that are incorporated by reference, except in
accordance with applicable securities laws.

Contacts:
Minefinders Corporation Ltd.
Mike Wills
Investor contact
(604) 687-6263
mike@minefinders.com
www.minefinders.com

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