Trelawney Mining and Exploration Inc.

Trelawney Mining and Exploration Inc.

January 19, 2010 16:24 ET

Trelawney Enters Into Agreement to Acquire Interest in Hiawatha Property

TORONTO, ONTARIO--(Marketwire - Jan. 19, 2010) - Trelawney Mining and Exploration Inc. (TSX VENTURE:TRR) (the "Company") is pleased to announce that it has entered into a mining claim acquisition agreement (the "Agreement") wherein the Company has been granted the right to acquire a 70% interest in certain patented and unpatented mining claims located in Lizar Township, Ontario (the "Hiawatha Property"). The Company can acquire the interest in the Hiawatha Property, in exchange for the sum of $40,000 and the issuance of 400,000 common shares of the Company.

The Hiawatha Property in Lizar Township, Sault Ste. Marie Mining Division, is located 120 km east-northeast of Hemlo in South Central Ontario. The property consists of 6 patented and 4 unpatented mining claims covering a total area of 747.22 hectares. The property occupies a 4.6 km long by 3 km wide sequence of northeast-trending, steeply dipping mafic metavolcanics injected by numerous parallel granodiorite sills (1-150 m wide). This sequence is flanked to the north by a regional granodiorite batholith and to the south by feldspathic and quartz-rich metasedimentary rocks. The Bear Creek Fault which crosses the property in a northeasterly direction has moderate to strong shearing associated with it.

Gold was initially discovered on the property in the mid 20's with 3 major gold zones discovered in the 30's, the North, South and West Zones. The North and South Zones were explored underground via a 100-m vertical shaft and two levels at 45 m and 84 m below surface. The West Zone, 800 m southwest of the shaft, was explored on surface only.

Gold mineralization consists of native gold associated with sheared, silicified and altered zones; gold is present as fine grains within or adjacent to late quartz veins. Highlights of historic sampling in the North Zone includes 2nd level channel samples of 95 g/t and 65 g/t Au over 0.9 m and surface grab samples of up to 153 g/t and 168 g/t Au. Historic sampling of a 425 m length of the South Zone on the 2nd level yielded greater than 10 g/t Au for 40 of 78 samples taken across widths of 0.30 to 1.52 m.

Greg Gibson, Trelawney's President and CEO commented: "The acquisition of the Hiawatha property is consistent with our strategic focus on quality ounce properties. Although our current efforts and commitment are geared to our Chester property, the Hiawatha is a good bet for the future with exploration upside."

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in NI 43-101 and reviewed by David Beilhartz, VP Exploration of the Company, a qualified person under 43-101 guidelines.

The securities issued will be subject to a four month hold period from the date of issuance. Completion of the transaction is subject to final approval of the TSX Venture Exchange.

In addition, the Company announces that it has granted an aggregate of 2,525,000 options to purchase common shares of the Company exercisable at a price of $0.75 per share for a period of five years, to certain directors, officers and employees of the Company. The common shares issuable upon exercise of the options are subject to a four month hold period from the original date of grant.

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

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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