Mustang Minerals Corp.
TSX VENTURE : MUM

Mustang Minerals Corp.

July 16, 2008 11:39 ET

Mustang Announces Increase to Brokered Financing

TORONTO, ONTARIO--(Marketwire - July 16, 2008) - Mustang Minerals Corp. (TSX VENTURE:MUM) (the "Company") is pleased to announce that, further to its press release of July 3, 2008, the Company has increased the size of its brokered private placement with Research Capital Corporation (the "Research Capital"), including an over allotment option, to a total of $4,000,040 (the "Offering").

The Offering is for up to $3,000,000 of common shares of the Company issued on a flow-through basis (the "Flow-Through Shares"). Research Capital has agreed to act as lead agent on a best-efforts private placement. The Offering is priced at $0.44 per Flow-Through Share. The Company has increased the over allotment option granted to Research Capital to $1,000,040, exercisable at any time before closing.

Proceeds from the Offering will be used by Mustang to advance the ongoing development of its Maskwa Nickel Deposit. On closing of the Offering, Research Capital will receive a cash commission of 7% of the gross proceeds arising from the Offering and compensation options to acquire common shares equal to 7% of the Flow-Through Shares sold under the Offering. Any securities issued pursuant to the Offering will be subject to a four month and one day hold period from closing.

All other aspects to the financing remain unchanged. The Offering is subject to regulatory approval and the completion of definitive documentation and is scheduled to close on or about July 17, 2008.

To find out more about Mustang Minerals Corp. (TSX-V: MUM) visit our website at www.mustangminerals.com

This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (together, "forward-looking statements"). Such forward-looking statements may include the Company's plans for its mineral projects , the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risks involving the Company's operations, uncertainty of production and costs estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of nickel and other metals, completion of economic evaluations, changes in project parametres as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Management Discussion and Analysis for the year ended December 31, 2007 and thereafter and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.

Shares Outstanding: 72,407,427

The TSX Venture Exchange has not reviewed and does not accept responsibility for the contents of this press release.

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