Hinterland Metals Inc.
TSX VENTURE : HMI

Hinterland Metals Inc.

July 08, 2009 13:33 ET

Hinterland and Partners Vend Two White Gold District, Yukon Properties to Silver Quest

VAL D'OR, QUEBEC--(Marketwire - July 8, 2009) - Hinterland Metals Inc. (TSX VENTURE:HMI) is pleased to announce that together with three private individuals, it has vended its 25% interest in two properties located in the newly recognized White Gold district south of Dawson City, Yukon to Silver Quest Resources Ltd. ("Silver Quest"). The properties were vended pursuant to the terms of two separate option agreements. Hinterland is due to receive in total from the two agreements $30,000 cash ($7,500 initially), 400,000 Silver Quest shares (100,000 initially) over a three year period and will retain a 0.5% net smelter royalty ("NSR") in each property.

The 32-claim (665ha) CC property is situated approximately 15km south of Underworld's Golden Saddle discovery. It is strategically located between Underworld's Thistle and Black Fox properties, and is directly east of Kaminak Gold's Kirkman property. Silver Quest has been granted the option to acquire a 100% interest in the CC property from the vendors for cash payments of $60,000 ($15,000 initially) and the issuance of 800,000 shares (200,000 initially) and a work commitment of $500,000 ($50,000 in year 1) scheduled over a three year period. The vendors retain a 2% NSR with the Silver Quest having the option to acquire 1% of the NSR for $1.0 million. Upon completing a 43-101 compliant resource estimate in excess of 100,000 ounces of gold in an indicated category, Silver Quest will make a one-time payment of $100,000 and 75,000 shares, to the vendors.

The TAK property includes 16 claims staked by vendors and an additional 66 claims staked by Silver Quest for a total of 82 claims (1,706ha). It is located approximately 40km southeast of Underworld's Golden Saddle discovery. Silver Quest has been granted the option to acquire a 100% interest in the TAK property from the vendors for cash payments of $60,000 ($15,000 initially) and the issuance of 800,000 shares (200,000 initially) and a work commitment of $500,000 ($50,000 in year 1) scheduled over a three year period. The vendors retain a 2% NSR with the Silver Quest having the option to acquire 1% of the NSR for $1.0 million. Upon completing a 43-101 compliant resource estimate in excess of 100,000 ounces of gold in an indicated category, Silver Quest will make a one-time payment of $100,000 and 75,000 shares, to the vendors.

Mark Fekete, P.Geo is the designated "qualified person" as defined in Section 1.2 in and for the purposes of National Instrument 43-101 responsible for the preparation and contents of this release.

Investors are invited to visit the Hinterland IR Hub at www.agoracom.com/IR/Hinterland where they can post questions and receive answers or review messages already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to HMI@agoracom.com where they can also request to be added to the investor e-mail list in order to receive all future press releases and updates in real time.

This release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in the Company's periodic reports including the annual report or in the filings made by the Company from time to time with securities regulators. The Company undertakes no obligation to publicly release the result of any revision of these forward-looking statements to reflect events or circumstances after the date they are made or to reflect the occurrence of an unanticipated event.

Shares Issued 51,185,401

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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