Hinterland Metals Inc.

Hinterland Metals Inc.

January 11, 2011 09:23 ET

Hinterland Acquires 166 Additional REE Claims in Kipawa Area of Quebec

VAL D'OR, QUEBEC--(Marketwire - Jan. 11, 2011) - Hinterland Metals Inc. (TSX VENTURE:HMI) is pleased to announce that it has doubled the size of its Kipawa REE property to 306 claims (17,826ha) by the acquisition of 166 new claims. The Kipawa area, located 140km south of Rouyn-Noranda, Quebec and 90km north-east of North Bay, Ontario, has long been known for its REE-zircon-yttrium potential generally related to the Kipawa Syenite Complex ("KSC"). The KSC occurs as a 100 to 300m thick, sheet-like body which can be traced around an arc-like structure for almost 100km.

During a preliminary data compilation of the Kipawa area in 2009 it was noted that four areas with anomalously high yttrium values in stream sediments were open to staking. Hinterland immediately acquired these areas by map designation as the Atwater, Jean-Talon, Maisonneuve and Lachine claim blocks. Later in 2009 Hinterland completed preliminary soil sampling surveys and identified significant REE responses on the Atwater and Lachine blocks. On Atwater three linear anomalies were detected with combined REE values up to 1091ppm. On Lachine one strong, circular anomaly was detected with combined REE values up to 1835ppm as well as five other spot anomalies (Hinterland News Release - April 20, 2010).

Later in 2010 a more detailed data compilation was completed and several areas open to staking were identified with anomalously high, coincident samarium, europium, and cerium values in stream sediments. These new areas, which generally lie between the Atwater and Lachine claim blocks, were consequently staked by Hinterland.

The present Kipawa property is situated approximately 30km due west of the Zeus REE-zircon-yttrium deposit held by Matamec Explorations Inc. In June 2010 Matamec announced that an independent resource estimation has defined an indicated resource of 3.35 million tonnes at a grade of 0.58% total rare earth oxides ("TREO") with 0.89% zirconium and an inferred resource of 6.48 million tonnes at a grade of 0.60% TREO with 0.99% zirconium (Matamec News Release - June 3, 2010).

"It is quite clear that the claims staked by Hinterland in Kipawa area have not been looked at for REE mineralization before. The regional stream sediment data and the target generation work that we have done to date definitely point to good REE potential on the claims," comments Mark Fekete, President.

Mark Fekete, P.Geo is the designated "qualified person" as defined in Section 1.2 in and for the purposes of National Instrument 43-101 responsible for the technical content of this release.

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