Metallum Resources Inc.

Metallum Resources Inc.

August 21, 2009 16:00 ET

Metallum Resources Inc. Signs Definitive Agreement to Sell its Interest in Chester Township Property to Trelawney Mining and Exploration Inc.

TORONTO, ONTARIO--(Marketwire - Aug. 21, 2009) - Metallum Resources Inc. (TSX VENTURE:MRV) (the "Company" or "Metallum") announces that it has signed a definitive agreement (the "Agreement") to sell its 92.5% undivided legal and beneficial interest in its Chester Township, Ontario mineral property (the "Chester Property") to Trelawney Mining and Exploration Inc. ("Trelawney") (TSX VENTURE:TRR).

The Chester Property claims comprise 11 patented and 18 unpatented mining claim units in Chester Township, located west of Highway 144 approximately midway between Sudbury and Timmins, Ontario.

Consideration for the purchase of the Company's holding in the Chester Property by Trelawney shall consist of (i) the issuance to the Company by Trelawney of five million (5,000,000) common shares in the capital of Trelawney on the closing date, representing approximately 19.8% of Trelawney's current issued shares, exclusive of Trelawney's announced private placement offering (see Trelawney's news release of July 29, 2009); and (ii) a 1% (one percent) net smelter return (NSR) royalty from production to be granted to the Company at such time as the price of gold exceeds USD $1,000 per troy ounce.

The transaction contemplated by the Agreement is subject to receipt of all approvals required by Metallum, including that of the TSXV. The parties have targeted a closing date of August 31, 2009.

Trelawney's intentions are to mine the adjacent former Chesbar gold property (recently acquired as an Option from Treelawn Investment Corp. - see Trelawney's news releases of June 26 and August 18, 2009) in conjunction with Metallum's Chester Property. Metallum's shareholders will benefit from this through the equity interest Metallum will have in Trelawney as well as its retained NSR royalty from production on the Chester Property.

Metallum is now focusing its attention on the five mineral properties in the Philippines to be acquired as a result of its proposed business combination with Solfotara Mining Corporation (see Metallum's news releases of February 28, 2009).

Metallum Resources Inc. is a precious metals exploration company which holds a group of patented and unpatented claims within Chester Township located west of Highway 144 midway between Sudbury and Timmins, Ontario. It also has an option to earn a 70 % interest in the M-18 gold property in Argentina. Metallum Resources Inc. has 53,803,828 common shares outstanding and is listed on the TSX Venture Exchange under the symbol MRV.

Greg Lipton, P. Geo. is the qualified person for the Company as required under National Instrument 43-101. He is a member of the Association of Professional Geoscientists of Ontario (APGO).

Further details may be obtained from our website:

This press release contains certain forward-looking statements. While these forward-looking statements represent our best current judgment, they are subject to a variety of risks and uncertainties that are beyond the company's ability to control or predict and which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

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