Millstream Mines Ltd.
TSX VENTURE : MLM
FRANKFURT : NJD

Millstream Mines Ltd.

August 01, 2008 14:06 ET

Millstream Negotiates Return of 10% Net Profit Interest In Potter Tailings

TORONTO, ONTARIO--(Marketwire - Aug. 1, 2008) - Millstream Mines Ltd. (TSX VENTURE:MLM)(FRANKFURT:NJD) is pleased to report that it has negotiated an agreement in principle to reacquire the 10% net profit interest ("NPI") in the Potter Mine Property Tailings that it had previously sold to a former director on April 11, 2001. Through this course of action Management will further consolidate its mineral interests in its 100% owned Potter Mine Property.

The agreement contemplates the return of 5% or one half (1/2) of the 10% Potter tailings NPI through the issuance from its treasury of 750,000 common shares of Millstream carrying a 12 month trading restriction. The remaining 5% or one half (1/2) of the 10% Potter tailings NPI is to be purchased by an private arms-length third party for the sum of CDN$150,000. This purchase agreement and the corresponding settlement agreement remain subject to TSX Venture approval.

About Millstream Mines Ltd.:

Millstream Mines Ltd. is a Canadian-based mineral exploration company whose principle objective is to enhance and develop known mineral properties to production potential. The Company has active projects in the Province of Ontario, Canada and in the State of Montana, USA. The past producing Potter Mine Property is host to copper-zinc-cobalt "stacked" mineralized zones located in the highly prolific Abitibi Greenstone Belt and more specifically in the Kidd-Munro Assemblage near the town of Matheson in north eastern Ontario. A recently published initial NI 43-101 compliant resource estimate on the Potter revealed an indicated resource of 3,028,767 tonnes at 1.45% copper, 1.19% zinc, 389.7 ppm cobalt, 11.1 ppm silver, and 127.5 ppb gold along with an inferred resource of 2,071,101 tonnes at 1.08 % copper, 1.05 % zinc, 301.4 ppm cobalt, 8.7 ppm silver, and 81.7 ppb gold. The Tamarack Gold Property, a high grade former gold producer in the Tobacco Root Mountains of south western Montana, is in an advanced stage of underground exploration and development operating under the Small Mines Exclusion Act of the State of Montana.

64,051,707 SHARES ISSUED

July 31, '08 Close: $0.085

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Millstream seeks safe harbour with regard to forward looking statements.

Contact Information

  • Millstream Mines Ltd.
    Mr. Ernest Harrison, EM
    Chairman and CEO
    (705) 474-7282
    (705) 474-5491 (FAX)
    or
    Millstream Mines Ltd.
    Mr. Marty Martinello, B.A.
    Executive V.P.
    (705) 474-7282
    (705) 474-5491 (FAX)
    or
    Millstream Mines Ltd.
    Mr. Robert Chase, CFA
    President and CFO
    (416) 368-9595
    (416) 368-6827 (FAX)
    Email: info@millstreammines.com
    Website: www.millstreammines.com