Midlands Minerals Corporation

Midlands Minerals Corporation

March 15, 2007 08:30 ET

Midlands Minerals Announces Option Agreement on New Kilindi Gold-Tanzania

TORONTO, ONTARIO--(CCNMatthews - March 15, 2007) - Kim Harris, Chief Executive Officer,Midlands Minerals Corporation ("Midlands" or the "Company") (TSX VENTURE:MEX) is pleased to announce the Company has entered into an Option Agreement with Vancouver based Canaco Resources Inc. ("Canaco") to develop Midlands' New Kilindi gold property in Tanzania.

Canaco is a TSX Venture Exchange junior exploration company focused on exploration and development of quality precious metal properties worldwide. The company, which trades under the ticker symbol "CAN", has a strong experienced technical team with a proven track record of success in the mining industry. New Kilindi is 2,700 square kilometres and was acquired by Midlands as a reconnaissance licence in order to explore the area adjacent to recent artisanal discoveries in the nearby Funguli Village.

"This is a good association due to the synergy with Canaco having their technical team already working in the Morogoro area. Midlands' strategy is to advance exploration projects as fast as possible and this alliance allows us to meet that objective. We are pleased with this agreement because it is timely and strategic for both companies", said Kim Harris.

Under the terms of the agreement, Canaco undertakes to spend US $2.5 million in work programs including a minimum of 5,000 metres of diamond drilling over 60 months to earn a 60% interest in the New Kilindi project. The terms of the option include a cash payment of US $100,000 over two years and the issuance of 200,000 common shares of Canaco to Midlands. Canaco has an option to acquire an additional 15% interest by bringing the New Kilindi project to a bankable feasibility study stage.

New Kilindi gold property is located in the Hendini District, 160 kilometres northwest of the city of Morogoro and west of the city of Dar es Salaam. It is located on the Neo-Proterozoic (Pan-African) Mozambique Belt and there are indications that it consists of a reworked ancient crust of Archean (Lake Victoria rock type) and Paleoprotorozoic rocks(Lupa Goldfields rock type).

"We expect work on New Kilindi to commence within the second quarter of 2007.This agreement will accelerate exploration activities on New Kilindi and will allow Midlands to increase its efforts on the Sian project in Ghana", said Marc Boisvert, P.EngVice President Exploration.

Midlands' objective is to increase the indicated and inferred resource on the Sian property and to bring the Sian project to a feasibility study stage by the end of 2008. Sian/Praso together form a 160 square kilometre package of prime exploration ground and cover large gold anomalies, indicating potential for a new mining district 30 kilometres north of Newmont Mining's Akyem gold deposit with more than 8 million ounces.

The scientific and technical information contained in this press release has been reviewed by Marc Boisvert, P.Eng., Midlands' Vice President -Exploration, who is a Qualified Person within the meaning of National Instrument 43-101.

Certain statements contained in this news release constitute forward-looking statements. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company to be materially different from actual results and achievements expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statements were made and the readers are also advised to consider such forward looking statements while considering the risks inherent in the business of mineral exploration.

The TSX-V has in no way passed upon the merits of the proposed transactions and has neither approved nor disapproved the contents of this press release.

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