SOURCE: General Metals Corporation

July 09, 2007 08:06 ET

General Metals Receives Final Approvals for Phase 1 Drilling and Posts Reclamation Bond With BLM to Start Drilling

RENO, NV--(Marketwire - July 9, 2007) - General Metals Corporation (OTCBB: GNLM) (FRANKFURT: GMQ) (the "Company") is pleased to announce that on Friday, July 6, 2007 it received the final approvals to commence Phase 1 drilling on its Independence mining claims located in Battle Mountain, NV. The approved Reclamation Bond is being sent today to the Bureau of Land Management.

Phase 1 targets the estimated 235,000 of gold and 2.5 million ounces of silver in the shallow deposits reported in the historical reports. The target for Phase 1 shallow drilling is to identify Industry Guide 7 reportable reserves which will set the stage for production activities leading to near term cash flow.

Company CFO Dan Forbush said, "Turning our surface and shallow mineralized material into Guide 7 reportable reserves and achieving near term cash flow through production will add substantial value to our Company and shareholders and will enable us to raise further equity at better prices, minimizing dilution. We are also exploring possible gold loans to raise the $3.5 million to finance production, which will enable us to finance our operations from our reported reserves, rather than through further share issuances."

Steve Parent, President and CEO, comments: "Once we are producing gold, silver and cash flow, the risk associated with the future Deep exploration is substantially reduced for both our shareholders and future investors. Most sophisticated investors today are as concerned with risk management as they are with an uncommon return on invested capital. The opportunity to expand our Deep target from the reported estimated 1.4 - 2 million ounces of gold to a potential 5 million ounces, as suggested by reports, creates such an uncommon opportunity and the fact that we are already in production and cash flow provides the risk management component that should make our Company an attractive investment vehicle."

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. with a full prospecting license for gold, diamonds and base metals in Ghana, West Africa. The Independence mine is located as an island in Newmont Mining's world-class Phoenix mine (www.newmont.com), which is the largest producing gold mine in the US. The Phoenix mine contains 8.5 million ounces of gold and 660 million pounds of copper in reserves. Historical and recent geologist and engineering reports discuss an estimated 235,000 ounces of gold and 2.5 million ounces of silver in the Independence shallow target and from 1.4-2 million ounces of gold in the Independence Deep target. Expansion discussions for the Deep Target are ongoing. We are unable to forecast an outcome at this time.

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. We cannot guarantee the existence of Industry Guide 7 reserves as a result of drilling and we cannot assure that our proposed production operation will be profitable. 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 2007, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

Contact Information