HMZ Metals Inc.

HMZ Metals Inc.

March 23, 2007 16:00 ET

HMZ Provides Corporate Update, Announces Settlement Proposal From Former CEO

TORONTO, CANADA--(CCNMatthews - March 23, 2007) - HMZ Metals Inc. ("HMZ" or the "Company") (TSX:HMZ) provides its bi-weekly update pursuant to the Management Cease Trade Order announced April 18, 2006.

The Company continues with the preparation of its financial statements and previously announced legal and other initiatives regarding the Company's Chinese joint venture interest. Data review and preliminary negotiations associated with potential new projects is ongoing.

The Company also announced that it has received notice of a potential claim by its former Chief Executive Officer in the amount of approximately C$500,000 relating to his ceasing to be an officer and director of HMZ. The Company will vigorously defend any action commenced by the former director and officer.

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