Nilam Resources Inc.
OTC Bulletin Board : NILR

December 11, 2007 09:01 ET

Nilam Resources Acquires El Varon Project in Peru

Production Projected to Reach 6,000 Tonnes per Month late in 2008

TORONTO, ONTARIO--(Marketwire - Dec. 11, 2007) - Nilam Resources (OTCBB:NILR)(FRANKFURT:3NL) is proud to announce the acquisition of the El Varon mine located approximately 2 hours driving from the town of Lima, in Peru. The property is located in the historical Central mining district along the main access road leading to Cerro de Pasco, a world class Au-Cu-Zn-Ag deposit and the Doe Run smelter located in the town of La Oroya. Peru ranks actually fifth in the world in the overall production for base and precious metals.

Nilam anticipates beginning production in early 2008 at a rate of 4,000 tonnes per month and gradually increasing it to 6,000 tonnes later during the year. Mineralization consists of high grade Gold-Copper-Zinc-Silver veins host by limestone.

The El Varon is a previously producing mine that was put on hold when the previous owner passed away. After years of litigation, the mine was acquired through a private sale in 2007 by Len De Melt, the chairman and director of Nilam Resources, which later placed the property within the Company.

"We're very pleased to announce the acquisition of El Varon property as it complements our current focus in Peru and shows our ability to acquire properties valuable resources," stated Alain Vachon, president and CEO of Nilam Resources. "This is a very important milestone for our company. With the high current price of the metals, we can anticipate good revenues which will serve us to establish a steady growth."

About Nilam Resources

Nilam Resources Inc. (OTCBB:NILR) focus is to be a precious and base metal producer in Peru. As a publicly traded company on the OTC-BB exchanges (OTCBB:NILR), Nilam Resources is engaged in serving the growing demands for mineral resources and long term geological operations.

Safe Harbour Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.

Contact Information