Millstream Mines Ltd.
TSX VENTURE : MLM
FRANKFURT : NJD

Millstream Mines Ltd.

September 28, 2007 09:00 ET

Millstream Starts Up Gold Mill at Tamarack

TORONTO, ONTARIO--(Marketwire - Sept. 28, 2007) - Millstream Mines Ltd. (TSX VENTURE:MLM) (FRANKFURT:NJD) is pleased to announce that at its Tamarack Mine Project of Montana, mill operations have commenced going through a period of tune-up. The crushing and grinding circuit, electrics, piping, flow cells, and a full size Deister gravity table are now being systematically tested. A stockpile of some 500 tons of roughly .1 ounces per ton (opt.) or 3 g/t gold material is being utilised in order to evaluate the milling process and further improve its extraction efficiencies. Once this necessary mill testing is complete and processing efficiencies improved the higher grade stockpiled material (.4 opt. or 12+ g/t) will then be processed. Concurrently, the exploration for further ore sources underground continues.

This is welcome news for Millstream as it represents a new milestone in the company's corporate history. To ensure the continuation of production beyond the initial mill testing period, the company has stockpiled 2,000 tons of .4 opt. (or 12+ g/t) gold material above ground (see PR's Feb. 19,'07 & May 4,'07) and is now continuing a drift underground to pick up a drill tested zone of mineralization, the previously released assays of which are as follows (see PR Oct. 31, 2006):



Drill Hole No. Down hole Width Gold Assay
Interval (ft.) (ft.) (m) (oz/ton) (g/t)

TR-2 50 to 150 100 30.47 .244 7.56
Including 70 to 90 20 6.1 .975 30.22
Including 105 to 115 10 3.05 .123 3.81


Also, six miles up the mountain to the west at the Uncle Sam Mine, of which Millstream has a 50% interest, a further 4,500 tons of 0.45 opt. broken up gold ore material lying in the stopes can be accessed for further feed to the mill (see PR Aug. 15,'97).

The Tamarack Property is well on the way to becoming a producing, high-grade gold operator in the Tobacco Root Mountains, Madison County, Montana. Millstream has a 100% interest in the Tamarack, lode gold bearing, Property and its associated assets. The Tamarack Property is accessible year round, 4 miles from the town of Sheridan, on a well maintained gravel road. The associated assets of the property include a newly refurbished 100 tons per day (tpd) mill. Additional assets include tailings disposal ponds, a water supply lagoon and well, compressors, bulldozers, loaders, haulage trucks, underground mining equipment, parts and tools. An electric power transmission line complete with a sub-station on the property has been energized through the electrical utility, NorthWestern Energy.

The Uncle Sam Mine is also located in the Tobacco Root Mountains 6 miles to the east of the Tamarack Mine and Mills. Detailed geophysical, geochemical and geological surveys have extended the previous workings to cover a gold/graphite bearing structure over 8,000 feet long. This investigation also identified the presence of other lode gold occurrences associated with the known mineralized Uncle Sam fault zone which has a true thickness of about sixty (60) feet or about 18.3 metres. All previous mining has occurred at the hanging wall of the Uncle Sam fault over a width of three (3) to ten (10) feet or 1 to 3 metres.

Management has reviewed this report and press release with the company's consultant, Phil A. Brown, P.Geo, who is the designated qualified person for the property.

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 company's main focus continues to be the 100% owned Potter Mine Property. This past producing 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. It is the company's ambition to fulfill drilling requirements necessary to estimate a NI 43-101 compliant resource.

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Sep. 27, '07 Close: $0.295

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.

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