Mustang Minerals Corp.
TSX VENTURE : MUM

Mustang Minerals Corp.

May 03, 2007 01:00 ET

Mustang Expands Mineral Rights Holdings Near Maskwa Nickel Deposit Completes New Heliborne EM Survey

TORONTO, ONTARIO--(CCNMatthews - May 3, 2007) - Mustang Minerals Corp. (TSX VENTURE:MUM)(FRANKFURT:NJF) today announced that it has added significantly to its mineral rights holdings in the Bird River Greenstone Belt near the Maskwa Nickel Deposit. Mustang has:

1) optioned a substantial parcel of mineral rights (the "Owyhee Property") that includes geophysical targets at the drill ready stage. The Owyhee Property has been surveyed by the proprietary GeoTech Ltd. VTEM(C) heliborne geophysical survey.

2) completed the GeoTech VTEM(C) heliborne EM survey (announced April 19, 2007) over the balance of its landholdings along the southern limb of the Bird River Greenstone Belt including the area covering the Maskwa Deposit.

Rationale

Mustang is currently completing a prefeasibility study on the Maskwa Nickel Deposit which will include the construction of a new concentrating plant as part of the development model. It is contemplated that any new significant discovery of mineralization in the Bird River area will enhance the overall project economics of Maskwa. The preliminary economic analysis (PEA) for Maskwa announced by Mustang (Micon International January 2007) estimated a Net Present Value pretax for Maskwa of C$142 million using a 10% discount rate. (see press release dated January 23, 2007). The PEA outlined annual nickel production in concentrate of 10.4 million pounds for nine years.

Owyhee Property

As part of its ongoing exploration activities in the Bird River Greenstone Belt, Mustang has optioned the Owyhee Property and expanded its prospective exploration ground. The Owyhee Property consists of over 8,000 hectares of mining claims and contains at least two drill ready exploration targets coinciding with significant VTEM(C) heliborne EM anomalies.

Under the terms of the option agreement with the principals of Owyhee, Mustang is required to spend $200,000 on exploration on the Owyhee Property prior to December 31, 2007 and test at least two priority EM targets currently identified. An additional $200,000 of expenditures is required on the property in the following year in the event Mustang elects to extend the option. In the event that Mustang commences commercial production on the property a three percent (3%) net smelter royalty (NSR) is payable. Mustang has a buyback on part of the NSR. One of the prominent anomalies which will be drilled is S-2B which is located approximately 8 km to the east of Maskwa.

Heliborne EM Survey Completed

The heliborne Geotech VTEM(C) Geophysical Survey announced April 19, 2007 by Mustang has been completed. A total of 652 line kilometres were flown. The survey covered the area over the Maskwa Deposit (indicated open pit resource of 8,055,700 tonnes grading 0.64% nickel and 0.13% copper) and the contiguous land position held by Mustang to the east and west of Maskwa. The ground to the east was acquired through Mustang's purchase of 72% of the common share capital of Maskwa Nickel Chrome Mines Limited, a former subsidiary of Falconbridge.
The VTEM survey outlined several prominent anomalies constituting areas of preliminary interest. These include an EM anomaly to the west of the Maskwa Deposit. The Anson Lake Property was also surveyed. Anson Lake is a discrete block of mining claims to the northwest of Maskwa. Data from this block is being interpreted to confirm possible drill targets. No known previous drilling has been completed at Anson.

Together with the Owyhee Property and the results of the recent VTEM survey Mustang has significantly expanded its exploration potential within its Bird River Greenstone Belt holdings. The outline of an expanded drill program will be announced in the coming weeks as well as a detailed project update.

A map showing the location of the Owyhee Property will be posted at the Mustang website under the Bird River Property Map. The link is http://www.mustangminerals.com/pages/plat_properties.html.

Ernest J. Marcotte P. Eng., VP Operations of Mustang Minerals is the QP for purposes of National Instrument 43-101 and has reviewed the contents of this release.

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

We seek safe harbour.

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 in Manitoba, 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 parameters 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, 2006 and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.

Shares Outstanding: 63,657,956

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

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