Philippine Metals Inc.

Philippine Metals Inc.

April 28, 2010 09:30 ET

Philippine Metals Inc. Initiates Exploration Program

CALGARY, ALBERTA--(Marketwire - April 28, 2010) - Philippine Metals Inc. (the "Company") (TSX VENTURE:PHI)(FRANKFURT:PM7) is pleased to announce it has initiated the first part of Phase 1 exploration activity on its Taurus Project on Leyte Island. This activity follows the recommendations of the Company's NI 43-101 technical report and will result in a detailed evaluation of identified mineralized corridors at the Kambalantong-Malayahay and Palo-Curajo mines. The program consists of ground-based magnetic, IP dipole-dipole and electromagnetic surveying as well as detailed geological mapping, sampling and site-specific trenching and test-pitting.

A line-cutting ground crew started work in early March and has completed all necessary ground preparation—consisting of over 25 kilometers of line cutting and creating access paths and trails as well as survey lines for Kambalantong-Malayahay and Palo-Curajo of 11.2km and 1.8km, respectively.

"We are pleased to tell shareholders our Exploration Program is underway," commented CEO, Feisal Somji. "The Taurus Project offers tremendous potential for added shareholder value and should be even more interesting to investors as geological data confirms our understanding of the area."

The objective of the activity announced today is to drill define our first NI 43-103 resource. Two historical mining sites are the current focus of this Phase 1 program, namely Kambalantong-Malayahay and Palo-Curajo areas.

At Kambalantong-Malayahay, multiple production and exploration-development tunnels distributed over an initial vertical depth of 150-meters had been rehabilitated and geologically evaluated by the company during the 3rd quarter of 2009 and disclosed ore grade ("over 2% Cu") massive sulphide (chalcopyrite +chalcocite +pyrite ± bornite) bodies occurring as gently dipping veins, lenses, and breccia. Thickness of the bodies ranges from inches to several meters with open lateral extents. Historical exploration data from the 1970's shows estimates of 4.5 million tonnes at a grade of 2.26% Cu.*

At Palo-Curajo, an open cast mining area, supplemented by underground tunnels down to 50-m underneath the lowest bench; was evaluated by the company and likewise disclosed sub-vertical massive sulphide bodies dominated by pyrite + chalcopyrite + sphalerite). Truckloads of cupriferous pyrite ore had been reported mined from this open pit mining area.

Palo-Curajo is located on the southern portion of, while Kambalantong-Malayahay is sited on the central portion of a 9,897 hectare tenement constituting the Taurus Project of Philippine Metals Inc. Taurus Project represents a historic mining belt where at least two strongly mineralized structures hosting massive sulphide and sulphide breccia have been traced for distances exceeding 18 kilometers.

*Resource estimates quoted herein are based on data and reports obtained and prepared by previous operators and are not National Instrument 43-101 defined resources verified by a qualified person. These historical estimates should not be relied upon. The Taurus project will require considerable further evaluation, which the Company's management and consultants are in the process of completing.

A geophysical Survey Agreement was signed on 20-April between the Company and Elliot Geophysics International Pty. Ltd., operated by Dr. Peter Elliot of Kardinya, Western Australia. Elliot Geophysics is a highly regarded geophysical services contractor in the Philippines and has conducted several successful surveys in the Western Pacific Region. Elliot geophysics equipment and a technical crew has now mobilized on the project with surveying having started on 26-April. Completion of the 13km line survey (inclusive modeling, interpretation and reporting of results) is expected within the next 28 days.

The results of the geophysical survey will be utilized to define the drilling layout for a future drilling program within the known ore-bearing mineralized corridors. As summarized in the NI 43-101 technical report and confirmed, the potential ore bodies are structurally controlled and usually cluster or align along normal faults near the transition from mafic pillow basalts and the overlying sedimentary rocks.

Mr. William Dynes, P. Geol. is the Qualified Person, as defined in NI 43-101, who has reviewed and verified the scientific and technical disclosures contained in this press release.

About Philippine Metals Inc.

Philippine Metals Inc. is focused on the exploration, discovery and development of high-prospective copper and copper-gold deposits in the Philippines. Based on the region's geological environment, the company's management team recognizes the country's potential for hosting large world-class deposits of copper and copper-gold.

The company's initial projects, Taurus, Malitao and Dilong, are excellent examples of management's ability to source quality, highly prospective targets. The management team combines strong financial capabilities with world-class experience in mineral exploration, discovery and mine development.

On behalf of the Board of Philippine Metals Inc.

Marshall Farris, President

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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