Mustang Minerals Corp.
TSX VENTURE : MUM
FRANKFURT : NJF

Mustang Minerals Corp.

May 12, 2009 08:30 ET

Mustang Provides Update on Maskwa Nickel Project Feasibility Study and Exploration Results

TORONTO, ONTARIO--(Marketwire - May 12, 2009) - Mustang Minerals Corp., (TSX VENTURE:MUM)(FRANKFURT:NJF) today announced a project update as well as results from exploration drilling at the Maskwa Nickel Project located near Lac du Bonnet Manitoba. The Company also updated the progress of the feasibility study underway for the Project and the status of the East Bull Lake JV with Western Areas NL.

The Maskwa deposit hosts a mineral resource currently estimated at 10.1 million tonnes (Mt) at 0.60% nickel in the measured plus indicated category. The current open pit proven and probable mineral reserve is estimated at 7.1Mt containing 0.64% Ni, 0.13% Cu and 0.47g/t PGM (Wardrop Engineering Inc. - see Mustang press release dated May 8, 2008). The current reserve is sufficient to predict a mine life of 7 years at a proposed annual production rate of 1Mt, and yielding target production of 9.2 million pounds of nickel in concentrate per annum. Mustang's objective for the project is to increase the in pit reserve, to attain a mine life of 10 years at the 1 Mt per annum production level. The drill results announced in this press release are part of an ongoing exploration for new areas of mineralization outside the proposed pit shell.

Minesite Exploration - Geophysical Program and Drilling

Mustang recently completed a TDIP\Resistivity survey (Time Domain Induced Polarization) survey and magnetic survey over part of the Maskwa property along the Bird River Sill. A total of nine widely spaced drill holes were drilled in the area approximately one kilometre to the east of the main deposit and the planned Maskwa open pit mine. A plan view map with drill hole locations is on the Mustang website at www.mustangminerals.com.

Drill hole MM09-140 was drilled north at a 45 degree angle and intercepted 42 meters averaging 0.32% nickel starting from 15 meters depth. The highest 1.5 meter (m) interval in the 42m assayed 0.75% nickel. MM00-140 was drilled north from the same collar location as the previously reported MM08-128, which was drilled in 2008 to the south at a 50 degree angle. MM08-128 intercepted 29.7m, from 17.8m to 47.5m depth, averaging 0.30% Ni. The mineralization encountered in these drill holes is open in all directions. MM09-139 was drilled 100 meters to the east and intercepted 3 meters at 0.85% nickel and 3.2 g/t Pt-Pd-Au. Further drilling is required to test the extent of the nickel mineralization in this area and to test for higher grade material. The exploration target is a near surface zone of open pittable mineralization.



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Drill hole From To Interval Ni Cu Co Au+Pt+
Pd
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(m) (m) (m) % % % g/t
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MM08-139 141.7 144.7 3.0 0.85 0.23 0.04 3.2
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Including 143.7 144.7 1.0 1.10 0.18 0.05 6.9
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MM08-140 15.0 57.5 42.5 0.32 0.05 0.01 0.23
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MM08-144 11.7 21.7 10.0 0.01 0.42 0.01 NA(i)
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And 51.5 54.9 3.4 0.01 0.56 0.01 NA(i)
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And 145.2 150.5 5.3 0.01 1.47 0.02 NA(i)
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including 145.9 146.9 1.0 0.02 4.70 0.05 NA(i)
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Above widths are apparent widths. NA(i) -not assayed.


A cross section of the above noted holes MM09-140 and MM09-128 are posted on the Mustang website at the following link: http://www.mustangminerals.com/drillholes.html

Hole MM09-144 was drilled to test a shallow conductive anomaly (located immediately north of Dumbarton mineralized zone). The anomaly drilled in MM09-144 has significant untested east west strike extent. The mineralization in MM09-144 is predominantly hydrothermal copper mineralization with minor precious metal enrichment.

QA/QC

Assays in 2009 were completed at Accurassay Laboratories in Thunder Bay Ontario. For nickel, copper and cobalt, Aqua Regia digestion followed by AA determination was used. For gold, platinum and palladium, fire assay of 30g aliquots followed by AA finish was employed. Assays for hole MM-08-128 noted above were completed by TSL Laboratories in Saskatoon, using Multi-acid digestion and ICP to report nickel as Total nickel. Drill core is logged and split on site at Maskwa with half core sent to the laboratory. Mustang conducts an ongoing QA/QC program on the drill core including inserting blanks, duplicates and standards with the samples.

Feasibility Study Work

Resource Update

The program of additional assaying of existing but previously unsampled drill core from the western portion of the Maskwa pit area is continuing and will include relogging, sampling and assaying of all historical drill holes potentially within the proposed Maskwa open pit mine envelope. This year core from up to 44 historic drill holes will be examined to infill and expand on the results from previous resampling. Results from these drill core samples will be added to the data base and used in a revised open pit resource and mine design. Target date for completion of the program and receipt of assays is by the end of July 2009.

An increase in the mine life and profitability of the proposed Maskwa open pit mine, compared to the result reported in the National Instrument 43-101 prefeasibility study of May 2008, is the objective of this program.

Metallurgical Program

The Company is completing exhaustive metallurgical tests to determine the economics of processing the lower grade "hanging wall zone" material which is located within the economic pit shell. Results to date are extremely positive and will be incorporated in the next update of the resource model.

Geotechnical Program

The Company has completed geotechnical drilling and test pit sampling, and will shortly follow with laboratory testing of these samples, required to allow definitive design for the proposed tailings management structures, plant buildings and waste rock storage. Feasibility level geotechnical work to determine optimal pit slope angles is now commencing and completion will be tied to coincide with a new mine design incorporating all new assay data.

East Bull Lake Drilling

Mustang is in a joint venture with Western Areas NL on the East Bull Lake project located west of Sudbury Ontario. Recent work on the project has included a ground electromagnetic EM survey. This survey was successful in identifying a large, moderately deep EM target located in a favourable geological setting. The strike length of the conductive anomaly is approximately 600 meters. Further information including a timeline for drilling at East Bull will be provided as soon as possible.

Ian Ward P. Eng., and John Smolen P. Geo. are the Qualified Persons for Mustang Minerals Corp. for purposes of National Instrument 43-101.

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 risk, uncertainty of production and capital 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 period ended December 31, 2008 and thereafter and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.

Shares Outstanding: 81,228,239

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