SOURCE: General Metals Corporation

May 07, 2007 07:01 ET

General Metals Receives Buy Recommendation From Onyx Equity Research With Target Price: $2.00 Based on Net Present Valuation

RENO, NV -- (MARKET WIRE) -- May 7, 2007 -- General Metals Corporation (OTCBB: GNLM) (FRANKFURT: GMQ) (the "Company") is pleased to announce that Onyx Equity Research has initiated research coverage on General Metals effective May 4, 2007. Stanley Moss, MBA - Research Analyst initiated coverage with a "BUY" rating and a net present valuation target of $2.00. (See page 11 of the full report.) For a complete discussion, the full report can be accessed through the following link: http://www.generalmetalscorporation.com/i/pdf/gnlmmay2007.pdf. This is the third such report received by the Company in the last several weeks. Please see Research Reports on our website www.generalmetalscorporation.com.

Mr. Moss stated that: "We like the fact that the Independence Mine is located as an island in Newmont Mining's Phoenix Mine, which contains 8.5 million ounces of gold and 660 million pounds of copper as reserves, is another plus. www.newmont.com General Metals experienced management team who have successfully started and operated similar mining projects gives us a good level of confidence."

Mr. Moss continued: "The Company can be a near-term producer with cash flow from existing tailings and surface or near surface minerals that can be brought to production quickly. In addition, indicated mineralized materials with greater concentrations of gold and silver at deeper levels (The Deep Target) provide a substantial value for future development. The recent addition of Dan Forbush, CPA, MBA as CFO, with his successful development background as former CFO for Glamis Gold, should enable the Company to attract substantial equity financings."

We cite from page 5 of the Report: "While the surface mineralization provides a short term operational opportunity, a significant amount of gold exists in the Wilson Deep Target. Definition of this target comes from eight deep holes drilled since 1985. Gold mineralization in the deep area occurs between depths of 2,000 and 3,340 ft. Average gold concentrations range from .073 opt to 0.431 opt; or some ten to forty times the concentrations in the shallow target. This mineralization concentration is reflected on the drilling results table shown on the next page. (See Page 6)"

He further states: "Management estimates the cost to develop the Wilson Deep Target to be in excess of $100 million. However, the return, given the mineralization concentrations shown, could be significant, and could go beyond the area defined by past drilling. The Company' s plan for these deep mineralization deposits is to enlist a partner with greater financial capacity than the Company to do further drilling to define the continuity of the mineralization, to develop a deep mining plan and to execute that plan. Using the data in the Exploration Plan and current prices and mining costs for the area, our estimates for the Wilson Deep Target, based on an initial expenditure of $120 million and ten year operation plan would provide an IRR in excess of 50%, or a net present value of existing GNLM shares of approximately $2.00 per share."

Mr. Moss , the author of this report, is an independent research analyst to Onyx Equity Research. He has over 20 years experience in equity research and large company financial analysis. Mr. Ross has worked as sell-side analyst for a regional investment banking firm and as a buy-side analyst for a hedge fund. He has also done substantial research and financial analysis for a Fortune 500 company for evaluation of acquisition prospects, major capital expenditure decisions and subsidiary spinouts and divestments.

Readers are cautioned to note that the Company does not endorse any analyst's views, including those of Mr. Moss and Onyx Equity Research, and that the distribution of any such report should not be viewed as indicating that the Company has agreed with the contents and conclusions in the report.

About General Metals Corporation, Inc: General Metals is a gold and silver mining Company that operates the Independence Mine in Battle Mountain, NV and has recently acquired 150 sq. km. of mineral rights and mining opportunities in Ghana, West Africa. The Independence mine is predominately a silver mine that produced intermittently from 1938 through 1987 in seven separate operations. Production came from 8 miles of underground workings developed along a 1,500 ft strike length of the Independence fault zone. Reported historic production by the various operators totaled 750,200 ounces silver and 11,029 ounces gold. The average recovered grade of all recorded production was 0.17 and 11.53 ounces of gold and silver per ton respectively.

From 1995 - 1997 there were several exploration campaigns conducted by Noranda, Teck Exploration, Northern Dynasty and Great Basin Minerals which resulted in about 80 reverse circulation and core drill holes being drilled and reported. An Executive Summary has been prepared containing a thorough discussion of production and exploration activities and is available on the Company's website.

According to Akright in his 1997 report, "The gold resource potential of the Independence property occurs in two distinct categories: a shallow open pit mineable target, suitable for heap leach and a deep underground target. Insufficient drilling has been done to calculate a proven or probable reserve for the shallow target. However, mineralized material containing 235,000 ounces of gold and 2,500,000 ounces of silver have been estimated by Carrington (1997)." Our 2006 exploration drilling campaign is designed to bring the shallow target into a resource category according to SEC Industry Guide 7.

According to exploration reports, the deep target in the southern area of the property could contain mineralized material with 1.4 million ounces of gold at an average grade of 0.17 ounces gold per ton, or 818,000 ounces of gold at a grade of 0.27 ounces gold per ton. The deep target will be further explored once the shallow target is brought to a level of confidence to start open pit mining and subject to available future financing.

Notice Regarding Forward-Looking Statements

This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, any future price of the Company's shares, that an estimated 235,000 ounces of gold and 2,500,000 ounces of silver are contained in the mineralized material in the shallow operation, that the deep target in the southern area of the property could contain mineralized material with 1.4 million ounces of gold at an average grade of 0.17 ounces gold per ton, or 818,000 ounces of gold at a grade of 0.27 ounces gold per ton. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration. We are not in control of metals prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-KSB for fiscal year 2006, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

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