General Minerals Corporation
TSX : GNM

General Minerals Corporation

August 24, 2007 15:11 ET

General Minerals Corporation Files Preliminary Prospectus for New Gold-Copper Company Spin-Off: High Desert Gold Corporation

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 24, 2007) -

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

General Minerals Corporation ("GMC" and "Company") (TSX:GNM) announces that it is proceeding with its previously announced plan to spin off its North American assets located in the United States and in Mexico into a separate gold-copper focused exploration company (see GMC PR 07-06, May 4, 2007).

On August 24, 2007, GMC's wholly owned subsidiary, High Desert Gold Corporation ("HDG"), filed a preliminary prospectus in connection with an initial public offering (the "IPO") of units in each of the Provinces of Ontario, British Columbia and Alberta. MGI Securities Inc. and Canaccord Capital Corporation are acting as agents of the offering.

Each unit consists of one common share and one half of one common share purchase warrant. The exact number of units to be issued and the price per unit will be set at a later date, following marketing of the offering, with closing anticipated to be in late September or early October. GMC will not receive any proceeds from the units sold by HDG other than the reimbursement of its costs in forming and organizing HDG.

HDG, directly and through subsidiaries, holds GMC's interests in its current mineral properties located in the U.S. and Mexico. The three material properties held by HDG are its flagship gold property, Canasta Dorada in Sonora, Mexico, the Gold Lake porphyry copper-gold-molybdenum property in New Mexico and the Monitor copper-silver property in Arizona.

HDG intends to use the net proceeds raised through the IPO to, among other things, drill and explore the Canasta Dorada and Gold Lake properties.

Certain statements contained herein, including statements relating to the anticipated closing of the IPO and the intended use of net proceeds of the IPO, constitute "forward-looking statements". "Forward looking statements" look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "plans," "intends," "anticipates," "should," "estimates," "expects," and "believes" and similar expressions. These forward-looking statements are based on current expectations and entail various risks and uncertainties. Actual results may materially differ from expectations as more information regarding the property is gathered or if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. The Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES, OR TO A U.S. PERSON, ABSENT REGISTRATION OR APPLICABLE EXEMPTION THEREFROM.

SEC 12g3-2(b): 82-34810

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