MetalCORP Initiates Spin-Off of Gold Properties Into a New Public Company

MetalCORP Limited announces that it has received Court approval authorizing it, amongst other things, to hold a shareholders meeting to seek shareholder approval of the spin-off of several gold properties to a wholly-owned subsidiary, Preciousmetals Explorations Inc. or such other name as the Board of Directors and regulatory authorities may approve (“Newco”), and the distribution of Newco shares to MetalCORP shareholders pursuant to a plan of arrangement between MetalCORP and Newco.

MetalCORP will seek shareholder approval of the plan of arrangement and proposed spin-off of several gold properties to Newco at a shareholders meeting to be held on November 25, 2008. Shareholders of record on October 25, 2008 will be entitled to vote at the meeting. Under the proposed plan of arrangement, MetalCORP shareholders would receive one half of a common share of Newco and one new common share of MetalCORP in exchange for each one of their MetalCORP common shares. The new common shares of MetalCORP will have the same rights and attributes as the current MetalCORP common shares.

“To date, we believe the market has not given MetalCORP credit for the value of these high quality gold properties,” commented Donald Alexander Sheldon, MetalCORP’s President. “We believe that turning these properties over into a new company will optimize the value of these gold assets for MetalCORP shareholders”.

MetalCORP is a mineral exploration company based in Thunder Bay, Ontario with base metal and gold projects in the Canadian Shield of Northern Ontario, Canada, one of the most prolific mineral districts in the world. The projects, with an area of more than 65,000 acres, include the Big Lake copper-zinc-silver-gold property, the North Rock copper-nickel-platinum property, the new Python nickel-copper-zinc property and the new Fearless zinc-copper-gold property, all of which are under active exploration. MetalCORP’s four gold projects, with a claim area of more than 20,000 acres, include the Dorset, Pickle Lake, Black Bear and Keezhik Lake properties. By identifying early stage properties that may be enhanced by exploration, MetalCORP’s experienced management team has assembled a great portfolio of projects.

MetalCORP has 46,306,636 common shares outstanding and approximately $2,500,000 in cash and no long-term debt. To find out more about MetalCORP Limited (CDNX:MTC.V), visit website at www.metalcorp.ca.