SOURCE: General Metals Corporation

March 06, 2008 08:08 ET

General Metals Starts Expanded 2008 Drilling Program to Advance Near Term Production Plans for Independence Mine in Battle Mtn., NV

RENO, NV--(Marketwire - March 6, 2008) - General Metals Corporation (the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ) is pleased to announce the start of its expanded 2008 drilling program at the Independence Mine. The results of Stage 1 of Phase 1 drilling completed in 2007 supported previous historical target estimates for the Independence shallow target of 235,000 ounces gold and 2,500,000 ounces silver by equaling or exceeding management's expectations. Mineralized intercepts in near surface and shallow zones ranged from 20 to over 200 feet with several holes bottoming in mineralization.

It was therefore determined to conduct Stage 2 of Phase 1 drilling to further define, with additional drill holes, the continuity and amount of mineralization in the shallow area of the Independence Mine. We are currently reporting on the 32 holes recently drilled in and around the Independence underground workings. 75% of the 32 holes have now been reported and the sections presented with the drill results are all available for review on the Company's website,

Drift Drilling and Exploration has rebuilt the drill rig and the weather is favorable to start Stage 2 of Phase 1 drilling on Monday, March 10, 2008. This Stage will drill another 10,000 feet plus and will be focused to better define mineralization to a Canadian National Instrument 43-101 compliant resource level. This will set the stage for the mine model which will become the foundation for the proposed cyanide heap leach operation.

2008 Stage 2 Expanded Drilling Program (Additional 25,000-35,000 feet)

During 2008 the Company plans an aggressive and expanded multi-pronged drilling program to evaluate additional target areas at the Independence property. Production planning is currently underway and will not wait for the expanded exploration program to be completed, but will integrate more compliant resources into the production program as available. Management is negotiating for a one year contract for the drill rig and crew.

Steve Parent, President, CEO said: "Initial drill results have given management the confidence to make a major financial commitment to the development, through expanded exploration drilling and production permitting, of a near surface oxide low cost bulk mining and heap leach operation at the Independence as soon as is practical to best take advantage of the current record market prices for gold and silver." He further said: "We are also aggressively seeking financing to further our development plans at the Independence and to support our aggressive acquisitions program which is already underway. It appears that we may qualify for flow-thru financing in Canada to conduct exploration on the Bannockburn Gold Mine, which we will pursue in an effort to expand historical reserves of 140,000 ounces of gold and to bring them to 43-101 compliant status."

Five Additional Exploration Targets At Independence: (See attached map)

East Fault Zone (EFZ) Target Area

This target area will evaluate projected near surface extensions of deep seated faults projected from the Independence Deep Gold Skarn Target. Developing mineralization in this highly prospective area would increase the near surface potential of the property, and enhance the economic parameters of developing a deep seated high grade gold skarn system.

Independence Extension Target Area

This target area will test projected extensions of the Independence Shallow Target north of the Canyon Fault. Successful drilling in this target area will materially expand the near surface potential of the Property. Recently compiled surface geochemistry suggests this zone has potential to extend mineralization similar to the Independence Shallow zone for up to an additional 1,200 feet to the north of the Canyon fault. This could effectively double the target potential. Several historical drill holes have intersected mineralized material similar to that of the Independence Shallow Target Zone in this area.

West Side Target Area

This target area is located to the north of the Independence Shallow Target and West of the Independence Extension Target Area. Favorable structural trends project into this target area from the Fortitude and Phoenix deposits. Holes in this area are specifically designed to test high grade mineralization indicated by historic soil geochemistry and drilling. Soil geochemistry has returned values up to 1,750 ppb (0.051 opt Au), while wide spaced historic drilling by Teck-Cominco intersected values in excess of 0.25 opt Au.

East Side Target Area

This target area lies along the eastern portion of the Wilson Independence Property, adjacent to the Giant Phoenix Project Plan of Operation boundary. Widely spaced soil geochemical samples in this area return uniformly high results ranging from 200 to more than 900 ppb gold (the Independence Shallow Target area is defined by a soil geochemical anomaly that ranges from 100 to 190 ppb Au). Historic surface rock chip samples are reported to contain up to 0.2 opt Au (7 ppm).

Independence North Target Area

This target area represents a large low grade target and is actually an extension of the Sunshine deposit, situated on the northern boundary of the Independence Property, which was mined by Battle Mountain Gold in 1995 - 1996. This target, like the Sunshine deposit is hosted in the Independence Stock, an apophisys of the Virgin Stock which is closely associated with the Fortitude - Phoenix deposits. This target area is indicated by multiple widely space drill holes and a consistent +100 ppb soil anomaly.

About General Metals Corporation: The Company is production and growth oriented and controls 100% of the strategically situated Independence property located in the prolific Battle Mountain Mining District on the Battle Mountain - Eureka gold trend, in Humboldt County, Nevada. The Company has a purchase contract on the Bannockburn Gold Mine in Ontario, Canada and also owns 150 sq. km. of mining concessions for gold, diamonds and base metals in Ghana, West Africa.

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, that the proceeds from the recent private placement will allow the Company to proceed with Phase 1 drilling at its Independence Mine in Nevada or any shallow mining production later this year, the budget for the Phase 1 drilling program, that an estimated 235,000 ounces of gold and 2,500,000 ounces of silver are contained in the mineralized material in the "Shallow Target," and is proposed to be mined and loaded onto a cyanide heap leach pad, or any future financings that the Company may enter into.

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 the 2004 fiscal year, 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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