Metallum Resources Inc. Not to Exercise Option on Its McMillan Property

Metallum Resources Inc. Not to Exercise Option on Its McMillan Property

Metallum Resources Inc. has decided not to exercise its option agreement with Garson Gold Corp. for its McMillan Property near Espanola, Ontario.

The McMillan Property claims comprise 34 unpatented mining claim units in Mongowin and McKinnon townships, located approximately 14 kilometres south of the town of Espanola, Ontario on the north shore of House Lake.

The Company’s option agreement with Garson Gold Corp. was entered into in November, 2004 and enabled the Company to earn a 50% interest in the McMillan property over a three year period for staged payments of $75,000 in cash and 650,000 common shares plus a three year work commitment of $950,000. Metallum had the option to increase its interest to 60% by issuing an additional 250,000 common shares and spending $400,000 more on the property.

Although Metallum has met its work expenditure requirements for its 50% interest in the property, exercise of the option would require an additional cash payment of $30,000 and issuance of 200,000 common shares to Garson Gold.

After reviewing, compiling, evaluating, and analysing the drilling data completed on the property by the Company over the last three years, and particularly the most recent campaign of drilling completed this past summer, Metallum has decided that the approximate $1.6 million currently in its treasury would be better directed to its Argentina initiative, as well as acquiring additional quality mineral properties, rather than continued exploration at the McMillan Property.

Metallum Resources Inc. is a precious metals exploration company which holds a group of patented and unpatented claims within Chester Township located west of Highway 144 midway between Sudbury and Timmins, Ontario. It also has an option to earn a 70 % interest in the M-18 gold property in Argentina. Metallum Resources Inc. has 53,803,828 common shares outstanding and is listed on the TSX Venture Exchange under the symbol MRV.

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