Mustang Minerals Corp.
TSX VENTURE : MUM
FRANKFURT : NJF

Mustang Minerals Corp.

September 12, 2008 08:00 ET

Mustang Minerals and Western Areas Sign Agreement for Joint Venture at East Bull Lake Near Sudbury, Ontario

TORONTO, ONTARIO--(Marketwire - Sept. 12, 2008) - The Board of Mustang Minerals Corp. (TSX VENTURE:MUM)(FRANKFURT:NJF) is pleased to announce an agreement to explore the East Bull Lake Project, 80km west of Sudbury in Ontario, Canada (Figure 1).

Western Areas (TSX:WSA)(ASX:WSA) can earn a 65% interest in the project from Mustang Minerals by funding up to C$4.5M in two stages over five years. The project includes net smelter royalty interests. The main purpose of the joint venture is to drill out a number of high quality nickel-copper-platinum group metals ("PGM") targets already defined by Mustang. Several of the targets coincide with highly anomalous sulphide hosted mineralisation in surface samples and in shallow drilling. The targets are also associated with previously unrecognised VTEM anomalies identified in a survey flown by Mustang in 2007.

East Bull Lake is a 20km long mafic intrusive complex which consists of two separate zoned intrusions joined by a 5km long feeder dyke (Figure 2). The project is considered to have excellent potential to host significant nickel/copper/PGM deposits within a world class metal province. The nearby Sudbury mining camp is the world's largest nickel producer. Total production at Sudbury since the 1880's, plus remaining ore reserves and mineral resources equates to approximately 18Mt nickel with significant copper/PGM credits.

Mineral rights covering the East Bull Lake intrusion have been held by Mustang since 1998. The project has also been the subject of several years of research by the Ontario Geological Survey. A 1993 Ontario Geological Survey Report (Open File Report 5849 by Peck, James Chubb et al) concluded that the "potential exists for extremely large tonnages of sulphide mineralisation, perhaps even massive sulphides (along the floor of the intrusion), which have platinum-group element-enrichment levels equating to reef environments."

Western Areas is planning to commence drilling at four priority targets in October.

Recent Exploration

Mustang has identified widespread surface PGM mineralisation at the East Bull Lake intrusion with individual grab sample assays up to 16.5g/t combined platinum-palladium-gold. (These results are reported in a NI 43-101 Report dated March 15, 2000 and an Addendum dated July 18, 2000 - Alar Soever B.Sc.P.Geo (Sask) Qualified Person)

In May 2007, Mustang completed a detailed Geotech heliborne VTEM survey over the project. This survey identified previously unknown VTEM anomalies which in several locations are associated with highly anomalous nickel-copper-PGM values in surface samples and drilling.

Initial drilling of the first VTEM target (Parisien Lake) in early 2008 yielded intersections including 1.1m @ 9.3% copper and 12.5g/t PGM from 89m down hole depth and 10m at 0.4% nickel at shallow depth. Historical drilling at East Bull Lake prior to Mustang's involvement intersected 0.5m @ 3.9% nickel in the central part of the intrusion.

Figure 1: Location of East Bull Lake intrusion is available at the following web link: http://media3.marketwire.com/docs/mum0912fig1.pdf.

Proposed Drilling Program

The initial drilling program will test the potential for high grade sulphide hosted nickel-copper-PGM deposits associated with VTEM conductors in three different areas of the intrusive complex. These areas are as follows (Figure 2):

- at the eastern end of the main feeder dyke (Novick Lake)

- in the footwall sequence on the northern side of the feeder dyke (Sables)

- southern margin of the west lobe of the intrusion (Parisien and Bullfrog)

Figure 2: Simplified geology of East Bull Lake intrusion showing initial drilling targets and locations of known copper/nickel sulphide and PGM mineralisation based on surface samples and drilling is available at the following web link: http://media3.marketwire.com/docs/mum0912fig2.pdf.

The initial drilling program will test the following targets:

1. Parisien Lake: Follow up previous drilling by Mustang which intersected significant nickel-copper-PGM values. This included drill hole EB08-02 which intersected 10m assaying 0.4% nickel; 0.4% copper and 0.5 g/t combined platinum-palladium-gold from 45m depth and 1.1m of massive sulphide which assayed 9.3% copper, 12.5 g/t total platinum-palladium-gold and 0.4% nickel from 89m depth.

2. Bullfrog: Follow up previous drilling by Mustang which intersected significant PGM values. This included drill hole ME00-18 which intersected 12m at 2.5g/t combined platinum-palladium-rhodium-gold from 29m depth.

3. Novick Lake: Test a large, VTEM anomaly at the eastern end of the feeder dyke in a setting similar to the Voisey's Bay nickel mine in eastern Canada. The VTEM anomaly which is interpreted to occur at between 150m and 300m depth occurs in an area with highly anomalous surface nickel values up to 0.7% nickel.

4. Sables: Test a group of strong VTEM anomalies located in the immediate footwall of the intrusion, adjacent to the central feeder dyke (Figure 2). The source of the VTEM anomalies is interpreted to occur between 60m and 200m depth (Figure 3).

Figure 3: Sables Target - showing strong VTEM anomalies in the footwall of the intrusion. (The black dots denote the locations of Mustang surface samples) - is available at the following web link: http://media3.marketwire.com/docs/mum0912fig3.pdf.

About Mustang Minerals.

Mustang has recently completed a pre feasibility study on the Maskwa open pit nickel project in SE Manitoba. An updated mineral resource calculation incorporating recent drill data is planned as part of a full feasibility study for the project. Permitting activities are progressing along with stakeholder engagement and environmental baseline studies have been completed. Mustang has an active regional exploration program ongoing during the current spring/summer field season notably at its Fox nickel project north of Maskwa in Manitoba.

Western Areas owns approximately 17% equity interest in Mustang Minerals. The independent directors of both companies have approved the East Bull Lake agreement.

Carey Galeschuk P.Geo the VP Exploration of Mustang is the Qualified Person for Mustang Minerals Corp. 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 .

Shares Outstanding: 81,228,239

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

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