Oriental Minerals Inc.
TSX VENTURE : OTL

Oriental Minerals Inc.

February 03, 2010 09:30 ET

Oriental Minerals Inc.: Corporate Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 3, 2010) - ORIENTAL MINERALS INC. (TSX VENTURE:OTL) -

KEY POINTS

Corporate

- 18th December 2010, New Management appointed 3 Directors with the result that Board reduced from 8 to 5.

- C$6.6 million placed into the company at 8 cents plus 1/2 a warrant at 12 cents. Well supported support from institutional investors, investors and brokered by GMP Securities LP London.

- Final payment for the Sangdong mining project paid, mining lease is in the name of Oriental Hard Metals, our Korean subsidiary, and Oriental Hard Metals has 51% ownership and holds 49% in trust for the vender. On presentation of scoping study/ pre feasibility the percent ownership increases by 19% to 70% and on submission of feasibility to 100% ownership. The vender will receive a Net Smelter Royalty (NSR) of 2%. It should be noted that South Korea has no government royalties.

- Share price climbed to high of 30 cents, over 300% since placement and warrants up over 200% before softened in the last week with the rest of the market. Real value is returning to the company as shareholders are recognizing that the new management are mine operators and developers who wll take the company forward unlocking value in Sangdong, one of the worlds historically great Tungsten mines and Muguk gold that closed when gold price fell and remains the country's largest historical gold producer with leases over a significant gold field.

- To allow ease of trade in our shares the Company will be adopting Direct Registration System with Computershare Trust Company of Canada. The Direct Registration System ("DRS" is system which allows its shareholders' securities to be held in "book-entry" form without having physical security certificates issued as evidence of ownership). Most large exchanges trade in this way.

- Company accounts and administration has been consolidated with IO Corporate Services Vancouver to keep overheads to a minimum and ensure independent accounting and corporate secretarial controls.

- Company name will be changed to Woulfe Mining Inc as Oriental Minerals Inc which marks the new beginnings for the company. The name Woulfe is from Peter Woulfe who defined the element tungsten.

Core Projects

Sangdong – Tungsten and Molybdenum

- Meetings with government and stakeholders held this month were very positive and reached informal agreement of mutual cooperation to work together to move Sangdong forward as quick as possible.

- Independent Geological and Environmental review currently taking place of core assets.

- Wardrop engineers has been appointed to produce a scoping study of two options due early March 2010. The past concept Option One for a large 7 million tonne mine and Option Two a smaller higher grade underground operation using the existing access, ventilation and possibly tailings dam which will allow for rapid project delivery. The mine was operating till 1993 and has significant infrastructure in place such as a mining town that has only 600 people remaining against a peak of 20,000, roads, power, water, tailings dams and an area that was the location of the process plant that was removed. This is a great advantage in the reopening the mine.

- The Phase 1 mine plan will be drafted in conjunction with the scoping study. This plan will involve reopening underground, short drilling from underground, trial mining and bulk metallurgical sampling for test work. Noting that ore was treated for 40 years at an average recovery of 70% and mining operations were conducted making the operational risks far lower than un-mined projects.

Muguk Gold

This is historically Korea's largest gold mine and had produced at a long term average head grade of 8 g/t when it closed in 1997. Independent assessment of historical channel sampling data i from 1353 assays from underground mine workings from the Samhyungje vein suggest that the vein was between 0.3m and 2.7m in width with an average width of 1.15m and an average sampled gold grade of around 30g/t. The median gold grade of these samples is 13.9g/t with a value for the highest assay at the 95th percentile of 104 g/t. tIf the data is regularized to metre x grams the average is around 30m.g with a median value of 16.2 and a value at the 95th percentile of 102g/t. The sampling methods and quality control procedures are undocumented for this data so it must be treated as purely an historical guide to mineralisation as it does not comply to NI43101 standards. It is however very encouraging. At the time of closure the "Reserve" estimated to Korean national standards by KORES (an agency of the Korean government) was given as 1.4 million tonnes at 13.5 grams of gold and 72.8 g/t silver. This does not comply with the requirements of NI43-101 in Canada and should not be considered to comply. It is included in order to give an indication of the tenor of the mineraliasation to be tested. There are an additional 99 NQ size diamond drill holes from the surface. When analysis of all available data iis complete drilling will be carried out with twin holes of some of the previous KORES holes to verify the voracity of the drill hole data base and exploratory holes to assess the extent and quality of the of mineraliasation which has veins known to extend f for a distance 2.5 km .

The scientific and technical information contained in this release has been reviewed and approved by Colin Lutherburrow, AusIMM, an independent geological consultant to Oriental.

About Oriental Minerals

Oriental Minerals is a TSX-V company that gained control of a significant portfolio of resource assets in South Korea, mostly mines that had closed when metal prices fell in the nineties. The asset base makes Oriental Minerals the largest foreign resource company in South Korea.

New management is focused on building a mining company and unlocking the value of the assets and their strategic location within 100kM of the large manufacturers of South Korea.

We are focused on reopening the Sangdong mine, deploying modern mining technology for the efficient extraction of ore. Metal will be won by gravity and flotation methods before value adding the product into APT which carries a premium over concentrate.

Forward-Looking Statements

Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in the Company's periodic filings with Canadian Securities Regulators. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drill results and other exploration data, the potential for delays in exploration or development activities, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties with or interruptions in production and operations, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, regulatory restrictions, including environmental regulatory restrictions and liability, competition, loss of key employees, and other related risks and uncertainties. The Company undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

Colin Lutherborrow Geologist and Independent Competent Person member of MAusIMM

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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