Trelawney Mining and Exploration Inc.
TSX VENTURE : TRR

Trelawney Mining and Exploration Inc.

August 24, 2009 12:38 ET

Trelawney Enters Into Agreement to Acquire Young-Shannon Property

TORONTO, ONTARIO--(Marketwire - Aug. 24, 2009) - Trelawney Mining and Exploration Inc. (TSX VENTURE:TRR) ("Trelawney") and Metallum Resources Inc. have entered into an agreement, under which Trelawney is entitled to acquire a 92.5% interest in the Young-Shannon Property adjacent to the Chester Township, Ontario property in exchange for 5,000,000 common shares of Trelawney and a 1% net smelter return royalty on the Young-Shannon Property payable when the monthly average gold price exceeds USD$1,000 per ounce.

The Young-Shannon Property consists of 11 patented and 18 unpatented mining claims. A qualifying technical report prepared in 1990 identified an indicated mineral resource of 220,000 tons grading 0.354 oz/ton gold on the C Zone and an inferred mineral resource of 725,000 tons grading 0.16 oz/ton gold on the C-Prime Zone (NI 43-101 non-compliant).

The C and C-Prime Zones consist of multiple stacked quartz veins related to east-west and northwest-trending regional shear structures. The veins range from less than a foot to more than 10 feet wide. The C and C-Prime Zones remain open at depth. A down hole IP survey in 2005 undertaken on the property defined two parallel high conductivity zones (anomalies) about 260 feet (80 metres) apart occurring down-dip and parallel to the C Zone. The C and C-Prime Zones are located approximately 1.5 kilometres to the west of Trelawney's existing ramp, which was developed to the 500-foot level, and which will be used for access to resources on the Young-Shannon Property.

The transaction is subject to receipt of all approvals required by the parties, including that of the TSX Venture Exchange. Subject to receiving such approvals, the parties have targeted a closing date of August 31, 2009.

Mr. Greg Gibson, the President and CEO of the Corporation, stated: "The acquisition of the Young Shannon Property, if completed, will substantially enhance Trelawney's production and exploration potential. Trelawney's existing ramp is ideally located for exploring and development the Young Shannon Property. We will begin planning for the development of the C and C-Prime zones while continuing the processes required to bring the Chester Mine to production."

The securities to be issued in connection with the transaction will be subject to a four month hold period from the date of issuance.

The foregoing historical resource estimates presented above were completed prior to the implementation of the NI 43-101 requirements, however given the quality of the historic work completed and the reputation of Metallum Resources Inc. (formerly Young Shannon Gold Mines), Trelawney believes the resource estimates to be both relevant and reliable. In addition, a qualified person has not completed sufficient work to classify these historic mineral resources as current mineral resources and the Company is not treating the historic resources as current. Hence, the historical estimates should not be relied upon. 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 Mitchell Lavery, P. Geo. for the Company, a qualified person under 43-101 guidelines.

Shares Issued: 20,259,357

This press release contains forward looking statements within the meaning of applicable Canadian and U.S. securities regulation, including statements regarding the future activities of the Company. Forward looking statements reflect the current beliefs and expectations of management and are identified by the use of words including "will", "anticipates", "expected to", "plans", "planned" and other similar words. Actual results may differ significantly. The achievement of the results expressed in forward looking statements is subject to a number of risks, including those described in the Company's annual information form as filed with the Canadian securities regulators which are available at www.sedar.com. Investors are cautioned not to place undue reliance upon forward looking 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.

Contact Information