General Minerals Corporation
TSX : GNM

General Minerals Corporation

August 31, 2007 10:36 ET

Shareholders of General Minerals Corporation Approve Agreement With Sprott Consulting Ltd. and Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 31, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

General Minerals Corporation ("GMC" or the "Company") (TSX:GNM) is pleased to announce that, at a meeting held earlier today, shareholders approved the following previously announced transactions (see GMC PR 07-10, July 3, 2007):

- the entering into by the Company of a management services agreement with Sprott Consulting Ltd.;

- the completion of the proposed $60 million private placement; and

- the change of the Company's name to "Sprott Resource Corp.".

It is currently anticipated that the private placement will close and the management services agreement will be entered into September 5, 2007 and that the name change will be effective on August 31, 2007.

Shareholders at the meeting also approved the proposed dilution of GMC's 100% interest in its wholly-owned subsidiary, High Desert Gold Corporation, which filed a preliminary prospectus in connection with its proposed initial public offering on August 24, 2007 (see GMC PR 07-13, August 24, 2007).

Forward-looking Statements

Certain statements contained herein constitute "forward-looking statements". "Forward looking statements" look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "plans," "intends," "anticipates," "should," "estimates," "expects," "believes," "indicates," "targeting," "suggests," "potential," "interpretation" and similar expressions. These forward-looking statements are based on current expectations and entail various risks and uncertainties. Actual results may materially differ from expectations if known and unknown risks or uncertainties affect our business. GMC assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES, OR TO A U.S. PERSON, ABSENT REGISTRATION OR APPLICABLE EXEMPTION THEREFROM.

SEC 12g3-2(b): 82-34810

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