Nilam Resources Inc.
OTC Bulletin Board : NILR

March 17, 2008 09:30 ET

Nilam Resources Inc. is Pleased to Announce Additional Gross Revenues From "Tailings" of $72,000,000 USD From its Llipa Property

TORONTO, ONTARIO--(Marketwire - March 17, 2008) - Nilam Rescources Inc. (OTCBB:NILR)(FRANKFURT:3NL) announced today that the company is planning to re-process the tailings at its recently acquired fully owned "LLIPA Property". The LLipa mine has been operated by Millotingo and has produced gold, silver and approximately 1.2 M tons at 5.30% Cu.

Tailings are produced following partial or complete extraction of the metals during the milling phase. They contain metals (Cu-Au-Ag) which are not extracted during the processing phase. The previous owners of the project have completed an evaluation of the tailing and they estimated that it contains approximately 1 M tons at a grade of 0.77% Cu and 8.7 g/t Ag and 2g/ton AU. This translates at the current metal prices in a gross value per ton standing at $72 for expected gross revenues totaling $72,000,000 after complete exploitation. This represents a significant asset of Nilam Resources. As mining techniques become more efficient, and with the implementation of modernization practices coupled with the increased market price of gold and silver, reprocessing additional minerals, previously more difficult and costly to extract, has become increasingly economically feasible.

Nilam Resources plans to carry on an aggressive exploration program at Llipa in order to delineate new reserves and resume production at the mine. As the mine has been shut down in 1986 due to social problems.

This will build Nilam into a company with two production mines and very high revenues. Nilam has positioned itself in a way that it has properties that all have the necessary infrastructure to become mines and the company plans to have three mines back into production within the next two years. The Pativilca mine current production revenues will allow the company the necessary capital to restart the other two previous mines and get them back into production with modern methods.

Mr. Len DeMelt stated, "Native Peruvian mining methods were very crude and inefficient. They leave behind a significant amount of tailings that Nilam Resources Inc. can now profitably mine. Re-processing these tailings will provide substantial added revenue for the company. We at Nilam Resources Inc. are committed to environmentally-conscious mining practices. We believe that reducing the harmful environmental effects of gold and silver mining to be in the interest of both the citizens of Peru, as well as our shareholders."

About Nilam Resources Inc.

Nilam Resources Inc. was established to focus on Peru's fast growing precious and base metals reserves, to become one of Peru's important foreign metal producers. Nilam Resources is a gold production company that is actively seeking more properties for its land portfolio in Peru and other countries in South America. Nilam Resources plans on becoming a major production company through acquiring additional producing mines and a series of joint ventures on high potential mining properties. The company counts on experimented professional resource having long standing relationships with Peru. This expertise coupled with their network of contacts allows the company to see some of the most sought after properties in the country along with a right of first refusal on exceptional projects.

Safe Harbour Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.

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