General Minerals Corporation
TSX : GNM

General Minerals Corporation

December 21, 2006 14:00 ET

General Minerals Corporation Files Preliminary Prospectus on New Silver Company Spin-Off: South American Silver Corp.

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 21, 2006) - General Minerals Corporation ("GMC" and "Company")(TSX:GNM) announces that it is progressing with its plan to form a new silver-focused company that was announced in late August of this year (see GMC PR 06-15, Aug. 24, 2006).

On December 21, 2006, GMC's wholly owned subsidiary, South American Silver Corp. ("SASC"), filed a preliminary prospectus in connection with an initial public offering of its common shares in each of the Provinces of Ontario, British Columbia, Alberta, Saskatchewan, Manitoba and Nova Scotia. MGI Securities Inc. is acting as lead agent of the offering.

The exact number of common shares to be issued and the price per share will be set at a later date, following marketing of the offering in the new year, with closing anticipated to be in mid-February. GMC will not receive any proceeds from the common shares sold by SASC other than the reimbursement of its costs in forming and operating SASC since October 2006.

SASC's flagship property is the Malku Khota-silver property in Bolivia. Additionally, SASC holds the Laurani silver-gold property in Bolivia and the Escalones copper-gold property in Chile.

Ralph Fitch, President and CEO of SASC, commented that "We are very excited about this new venture and see this as a real opportunity to unlock the true value of our South American properties, especially Malku Khota, that holds the potential to be a significant silver discovery."

The funds raised through the IPO will be used to aggressively explore and advance the 100% controlled Malku Khota flagship silver property and to continue the exploration at Laurani. At Malku Khota the planned exploration includes a substantial program of drilling, tunneling and detailed metallurgical testing.

Escalones is currently joint ventured to Minera Aurex (Chile) Limitada ("Aurex"), the Chilean subsidiary of Phelps Dodge Corporation, and Aurex has applied for drilling permits with the intent of starting drilling during the current season.

Certain statements contained herein constitute "forward-looking statements". These forward-looking statements are based on current expectations. The nature, timing and extent of the exploration programs may materially change from current intentions for a number of reasons. Additionally, "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," "believes," "indicates," "targeting," "suggests," "potential" "interpretation" and similar expressions. These forward-looking statements, including statements regarding the Company's beliefs in the potential mineralization, are based on current expectations and entail various risks and uncertainties. Actual resultts 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.

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

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