Full Metal Minerals Ltd.
TSX VENTURE : FMM

Full Metal Minerals Ltd.

February 23, 2011 13:59 ET

Full Metal Announces Proposed Spinout of Fortymile Zinc Project; Termination of its Interest in the Lucky Shot Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 23, 2011) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES.

Full Metal Minerals Ltd. ("Full Metal") (TSX VENTURE:FMM) announces that it intends to conduct a corporate reorganization by way of statutory plan of arrangement (the "Arrangement") under the Business Corporations Act (British Columbia). Through a series of transactions involving wholly-owned subsidiaries of Full Metal, Full Metal intends to spin out its interest in the Fortymile zinc project in Alaska in exchange for common shares of Full Metal Zinc Ltd. (a newly-incorporated wholly-owned subsidiary of Full Metal) to be distributed to Full Metal shareholders. Under the Arrangement, Full Metal would retain the rest of its property interests in Alaska and the Yukon Territory, including the Pyramid and Pebble South projects in Alaska.

Full Metal intends to schedule a special meeting (the "Meeting") to obtain shareholder approval of the Arrangement in due course. The Arrangement will be subject, among other things, to approval of the TSX Venture Exchange, the Supreme Court of British Columbia and the shareholders of Full Metal.

Full details of the proposed Arrangement will be contained in future news releases and in a notice of meeting, information circular and supporting documents describing the Arrangement to be mailed to shareholders in due course.

Full Metal also announces that it has terminated its interest in the Lucky Shot property in Alaska under its lease agreement dated March 31, 2008 with Alaska Hardrock Inc. (the "Lease Agreement"). This follows the termination of the option agreement between Full Metal and Harmony Gold Corp., as assignee of Full Metal's rights under the Lease Agreement, announced on November 18, 2010.

Given the context of the Mining Lease and after evaluating the engineering and geological data that former partner, Harmony Gold Corp provided, Full Metal felt that the Lucky Shot Deposit would not meet the Internal Rate of Return required to justify additional capital.

Full Metal will be focusing on its flagship project the Pyramid Porphyry Deposit, located in southwest Alaska. In May 2011, Full Metal and its partner Antofagasta Minerals (one of the world's largest copper producers) will be initiating the follow up drill program to this recent discovery.

All previous holes at Pyramid encountered mineralization over long intervals, starting at surface. The 2010 drill program covered a 900 meter (east-west) by 750 meters (north-south) area. Copper mineralization has been traced on surface, over an approximate 2,000 meter by 1,000 meter area, and mineralization is open in all directions and to depth.

ON BEHALF OF THE BOARD OF DIRECTORS

Michael Williams, President and Director

This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this news release, including, without limitation, statements regarding plans for the completion of a proposed Arrangement, the structure of such Arrangement and other future plans and objectives of Full Metal are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Full Metal's plans or expectations include Full Metal's ability to obtain approval of the TSX Venture Exchange, the Supreme Court of British Columbia and the shareholders of Full Metal to the proposed Arrangement and general economic, market or business conditions, regulatory changes and other risks detailed herein and from time to time in the filings made by Full Metal with securities regulators. Full Metal expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.

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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