Millstream Mines Ltd.

Millstream Mines Ltd.

August 13, 2007 09:00 ET

Millstream Moves Forward Towards Gold Production at Tamarack

TORONTO, ONTARIO--(Marketwire - Aug. 13, 2007) - Millstream Mines Ltd. (TSX VENTURE:MLM)(FRANKFURT:NJD) is pleased to announce that at its Tamarack Mine Project, the Department of Environmental Quality (DEQ) has approved its tailings pond design along with the liner to be utilised. Construction of said pond is expected to be completed in the next 2 weeks. As well, the required bond has been posted. Thus, with all this in place, Steve Mortenson, General Manager of Mine Operations, discloses, "Barring any unforeseen circumstances, mill operations will commence at Tamarack by the month's end."

This is welcome news for Millstream as it represents one of the final hurdles that it must overcome to put the 100 ton per day operation into motion. To this end, the company has finished refurbishing the mill, has stockpiled 1,500 tons of .4 oz per ton (opt.) gold material above ground (see PR's Feb. 19,'07 & May 4,'07) and is now driving a drift underground to pick up a new zone of mineralization. Also, six miles up the mountain to the west at the Uncle Sam Mine, of which Millstream has a 50% interest, a further 4,500 tons of 0.45 opt. broken up gold ore material lying in the stopes can be accessed for further feed to the mill (see PR Aug. 15,'97).

The Tamarack Property is a former producing, high-grade gold operator in the Tobacco Root Mountains, Madison County, Montana. Millstream has a 100% interest in the Tamarack, lode gold bearing, Property and its associated assets. The Tamarack Property is accessible year round, 4 miles from the town of Sheridan, on a well maintained gravel road. The associated assets of the property include a new small 60 to 100 tons per day (tpd) mill erected in the early 1990's and an older small 50 to 60 tpd mill, now refurbished to handle 100 tpd, and last operated in the 1960's. Additional assets include tailings disposal ponds, a water supply lagoon and well, compressors, bulldozers, loaders, haulage trucks, underground mining equipment, parts and tools. An electric power transmission line complete with a sub-station on the property will be energized on signing a current contract with the electrical utility, NorthWestern Energy.

The Uncle Sam Mine is also located in the Tobacco Root Mountains 6 miles to the west of the Tamarack Mine and Mills. Detailed geophysical, geochemical and geological surveys have extended the previous workings to cover a gold/graphite bearing structure over 8,000 feet long. This investigation also identified the presence of other lode gold occurrences associated with the known mineralized Uncle Sam fault zone which has a true thickness of about sixty (60) feet or about 18.3 metres. All previous mining has occurred at the hanging wall of the Uncle Sam fault over a width of three (3) to ten (10) feet or 1 to 3 metres.

Management has reviewed this report and press release with the company's consultant, Phil A. Brown, P.Geo, who is the designated qualified person for the property.

About Millstream Mines Ltd.:

Millstream Mines Ltd. is a Canadian-based mineral exploration company whose principle objective is to enhance and develop known mineral properties to production potential. The Company has active projects in the Province of Ontario, Canada and in the State of Montana, USA. The company's main focus continues to be the 100% owned Potter Mine Property. This past producing property is host to copper-zinc-cobalt "stacked" mineralized zones located in the highly prolific Abitibi Greenstone Belt and more specifically in the Kidd-Munro Assemblage near the town of Matheson in north eastern Ontario. It is the company's ambition to fulfill drilling requirements necessary to estimate a NI 43-101 compliant resource.

Millstream seeks safe harbour with regard to forward looking statements.

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