Macarthur Minerals Limited
TSX VENTURE : MMS

Macarthur Minerals Limited

January 12, 2007 09:30 ET

Macarthur Minerals Limited: Lake Giles Iron Ore Exploration Starts Stage Three Drilling

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 12, 2007) - Macarthur Minerals Limited (TSX VENTURE:MMS) (the "Company") is pleased to announce that the Stage 3 drilling program on the 100%-owned Lake Giles project has commenced this week.

The objectives of the drilling are to sample the 3-kilometre long outcropping Clark Hill / Volga banded Iron formation and to drill for the strike extensions previously identified at the 1.6-kilometre-long Snark Project (See fig 1. for project locations).

This Stage 3 drilling program is based on the geological interpretation of geological logging, chemical assays and Davis Tube Recovery results from the successful Stage 2 program.

Previous drilling at the Snark Project has been completed on a 400-metre traverse over the 1.6-kilometre strike length. Significant intersections were as follows:



Table 1 - Significant Intersection Table

-----------------------------------------------------------------------
HEAD
GRADE CONCENTRATE GRADE
XRF % DTC %
FROM TO INTERVAL -----------------------------------
HOLE (m) (m) (m) Fe % Fe % SiO2% Al203%
-----------------------------------------------------------------------
LGRC_001 80 147 67 26.1 64.8 8.54 0.26
-----------------------------------------------------------------------
LGRC_002 125 163 38 31.1 64.2 9.80 0.12
-----------------------------------------------------------------------
LGRC_011 130 235 105 30.3 68.4 4.72 0.13
-----------------------------------------------------------------------
LGRC_013 90 108 18 34.0 70.5 2.88 0.11
-----------------------------------------------------------------------
LGRC_014 90 192 102 29.5 65.9 7.41 0.20
-----------------------------------------------------------------------
LGRC_015 120 160 40 10.8 60.3 2.43 0.34
-----------------------------------------------------------------------
LGRC_016 126 150 24 15.7 62.2 12.7 0.18
-----------------------------------------------------------------------


Earlier drilling at the Clark Hill / Volga was focused on reconnaissance drilling of banded iron formation outcrops. Significant intersections were as follows:



Table 2 - Significant Intersection Table

-----------------------------------------------------------------------
HEAD
GRADE CONCENTRATE GRADE
XRF % DTR %
FROM TO INTERVAL -----------------------------------
HOLE (m) (m) (m) Fe % Fe % SiO2% Al203%
-----------------------------------------------------------------------
LGRC_018 175 235 60 31.2 61.7 12.23 0.12
-----------------------------------------------------------------------
LGRC_022 65 126 61 32.5 64.4 9.77 0.10
-----------------------------------------------------------------------
LGRC_024 110 174 64 31 64.6 9.77 0.12
-----------------------------------------------------------------------
LGRC_025 60 108 48 32.1 65.7 8.08 0.09
-----------------------------------------------------------------------
LGRC_026 72 160 88 28.6 66.3 7.28 0.14
-----------------------------------------------------------------------


- Note that all holes were drilled at -60 degrees

- Sample interval comprises 5m composites.

- Each 5m composite is individually tested by DTR, with all composite results average for the interval.

- DTR testing performed by AMDEL Limited (Mineral Services Laboratory) with chemical analysis by X-ray Flourescence Spectromery (XRF).

The Davis Tube Recovery (DTR) test is an industry standard for determining potential commercial recoveries of magnetite.

Stage Three drilling of Clark Hill / Volga will be on an 800m grid to identify southerly strike extensions.

Throughout 2006, Macarthur drilled 27 RC holes for a total of 3,944m. Stage Three drilling will add another 30 holes for a total of 3,500 to 4,000 metres.

Approximately 1,500 composite samples were submitted in 2006 for analysis and of which a further 260 five-metre composites were submitted for Davis Tube test analysis.

All mineralised intersections from stage three drilling will be analyzed by Amdel Limited at their Western Australian laboratory. The expected turn around for results will be 5-6 weeks after sample submission.

As shown in Table 1 and 2, Davis Tube test results continue to demonstrate that a high quality concentrate can be produced from the Lake Giles magnetite minerlisation.

Stage Four Drilling

On the completion of Stage Three drilling and following receipt of all analytical results and evaluations, Stage Four infill drilling will be initiated to quantify a resource and to define areas that warrant bulk sampling and beneficiation test work. This work will proceed in the first half of 2007.

Qualified Person

Mr. Nick Revell BSc is a member of AusIMM, and a Company director, is a Qualified Person as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"), in charge of the exploration on the Lake Giles project.

On behalf of the Board of Directors,

MACARTHUR MINERALS LIMITED

David K. Barwick, President, Chairman & CEO

To view accompanying map please click on the following link: http://www.ccnmatthews.com/docs/MMS_Fig1.jpg

ACN 103 011 436

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