SOURCE: General Metals Corporation

May 31, 2007 10:10 ET

General Metals Announces Closing of Unit Private Placement and Warrant Exercises for Proceeds of $451,065 to Advance Phase 1 Drilling at Independence Mine

RENO, NV--(Marketwire - May 31, 2007) - General Metals Corporation (the "Company") (OTCBB: GNLM), (FRANKFURT: GMQ) announced that on May 31, 2007, it completed a private placement and existing warrants were exercised requiring the issuance of 4,438,265 restricted common shares for proceeds of $451,065. In addition to the shares issued, 343,200 warrants @ $0.125 and 615,000 warrants @ $0.25 were issued. Each Warrant shall be non-transferable and shall entitle the holder thereof to purchase one share of common stock in the capital of the Company (each, a "Warrant Share"), as presently constituted, for a period of twelve months commencing from the effective date of a registration statement pertaining to the Warrant Shares, at the respective price per Warrant Share. The securities offered in the private placement and warrant exercises to the investors were not registered under the Securities Act of 1933 as amended (the "Act"), and may not be offered or sold in the United States absent registration, or an applicable exemption from registration, under the Act. These shares are eligible for the 11:10 forward split anticipated to take place at the annual and special meeting held at the Company's Reno, NV office on June 29, 2007.An 8-K will be filed that discusses the above share issuances in detail.

Coupled with the $265,000 raised in the previous private placement announced on April 23, 2007, the total proceeds raised in the two placements was $716,065 which is 53 % of our Phase 1 drilling and exploration budget of $1,350,000. These proceeds will enable the Company to begin the Phase 1 drilling program on the Independence Shallow Target at its Independence Mine in Battle Mountain, Nevada. This first program is designed to identify a resource of mineralized material in the zone that would be the start of the planned shallow mining production slated for later this year. The Target for Phase 1 is 235,000 oz. gold and 2,500,000 oz. silver, which is proposed to be mined and loaded onto a cyanide heap leach to be developed by the Company.

The Company is actively pursuing substantive discussions on the expansion of our deep drilling target which could double our existing deep target once concluded. An overall budget for the deep drilling will be established once the plan is finalized. A complete discussion of our Independence Project is in an Executive Summary on our website: www.generalmetalscorporation.com

Notice Regarding Forward-Looking Statements

This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, that the Company intends to proceed with Phase 1 drilling at its Independence Mine in Nevada later this year, the budget for the Phase 1 drilling program, that an estimated 235,000 ounces of gold and 2,500,000 ounces of silver are contained in the mineralized material in the "Shallow Target," and is proposed to be mined and loaded onto a cyanide heap leach pad.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration. We are not in control of metals prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-KSB for the 2006 fiscal year, our quarterly reports on Form 10-QSB and other periodic reports filed from time to time with the Securities and Exchange Commission.

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