Inspiration Mining Corporation

Inspiration Mining Corporation

January 29, 2008 11:21 ET

Inspiration Mining Corporation: Jasper Property Spin-Off Update

TORONTO, ONTARIO--(Marketwire - Jan. 29, 2008) - Inspiration Mining Corporation ("Inspiration" or the "Corporation")(TSX:ISM)(FRANKFURT:OI8) would like to provide an update on its proposed spin-off of its Jasper Property announced previously in a press release dated July 17, 2007. As previously stated, the Corporation intends to, subject to regulatory approval, to restructure its holdings whereby the Corporation intends to divest itself of its Jasper Property located on Vancouver Island, British Columbia. The proposed restructuring will allow the Corporation to fully focus on advancing the Langmuir Project in Ontario.

Pursuant to a purchase agreement dated December 1, 2007 but effective as at July 30, 2007, the Corporation intends to sell the Jasper Property to Nitinat Minerals Corporation, an arm's length third party ("Nitinat") in exchange for 13,367,904 special warrants ("Special Warrants"). Each Special Warrant entitles the holder to acquire (subject to adjustment), for no further consideration, one common share in the capital of Nitinat (the "Nitinat Common Shares") at any time on or before the date (the "Expiry Date") which is the earlier of:

(i) the sixth business day after the date that a receipt (the "Prospectus Receipt") is issued by the last of the securities regulatory authorities of Ontario, Alberta and British Columbia for a (final) prospectus of the Purchaser qualifying the distribution of the Nitinat Common Shares to be issued upon exercise of the Special Warrants; and

(ii) November 1, 2008.

Any Special Warrants not exercised prior to 5:00 p.m. (Toronto time) on the Expiry Date shall be deemed to have been exercised immediately prior thereto, without any further action on the part of the holder.

The Corporation proposes, subject to the prior approval of the Toronto Stock Exchange (the "TSX") and the receipt of the Prospectus Receipt, to distribute up to 100% of the Nitinat Common Shares on a pro rata basis to all of the Corporation's shareholders as at July 30, 2007.

Management believes that by establishing a new public vehicle to develop the Jasper Property, existing Inspiration shareholders will be rewarded as Nitinat unlocks the true value of the Jasper Property.

The Jasper Property claims are located in the Victoria Mining Division, southwestern Vancouver Island, British Columbia. The property is approximately 80 kilometres northwest of Victoria. The southern portion of the claims overlie much of the Caycuse River and its tributaries Four Mile Creek and Seven Mile Creek, extend northwards over the height of land to the tributaries of Jasper Creek, and westwards to a no staking reserve along the eastern shore of the Nitinat River. The Jasper Property consists of the Jas 3 legacy mineral claim and nine cell mineral claims that comprise ten contiguous claims which total 6,615 hectares. The property is currently 100% owned by Inspiration.

The Jasper Property does not constitute all or substantially all of the assets of the Corporation and as such shareholder approval is not required for the proposed divesture.

Forward Looking Statements

This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "anticipated", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Inspiration is subject to significant risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements contained in this release. Inspiration cannot assure investors that actual results will be consistent with these forward looking statements and Inspiration assumes no obligation to update or revise the forward looking statements contained in this release to reflect actual events or new circumstances.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information