Nilam Resources Inc.
OTC Bulletin Board : NILR

June 25, 2008 07:00 ET

Nilam Resources Inc. Is Pleased to Announce Gold Production Schedule on Its Llipa Property

TORONTO, ONTARIO--(Marketwire - June 25, 2008) - Nilam Resources Inc. (OTCBB:NILR)(FRANKFURT:3NL) announces that it has begun a schedule for production of its 1,200,000 tons of high grade tailings on their wholly owned Llipa property. The company plans to reprocess these tailings and will use the funds to finance the completion of infrastructure necessary to move the mine into full production. These tailing will provide significant value for the company once processed.

Upon successful implementation of our plan, Nilam will soon have two production centers with substantial revenues. Nilam has positioned itself to complete the infrastructure necessary to have all three of its mines back into production within the next two years. Once acquired, the revenues from the Pativilca mine's production will provide the Company with the capital needed to modernize and restart our El Baron and Llipa mines.

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 millingling 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 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.

Mr. Len DeMelt stated, "We hope to have the company producing these tailing within the next months. Native Peruvian mining methods were very crude and inefficient. They leave behind a significant amount of tailings that Nilam 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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