Magma Metals Limited
TSX : MMW
ASX : MMW

Magma Metals Limited

May 16, 2011 07:50 ET

Summer Drilling Program Commences at Thunder Bay North

PERTH, WESTERN AUSTRALIA--(Marketwire - May 16, 2011) -Magma Metals Limited(TSX:MMW)(ASX:MMW)("Magma" or the "Company") is pleased to advise that the summer drilling program has commenced at its Thunder Bay North platinum-palladium-copper-nickel (Pt-Pd-Cu-Ni) project in Ontario.

Magma recently announced an initial approximately 14,000m drilling program to test potential resource extensions over a 600m strike length of the Current Lake Intrusive Complex (see March quarterly report dated April 27, 2011). This area is immediately to the south-east of the currently defined mineral resource (Figure 1). Several holes will also be drilled immediately south of the Bridge Zone to test open positions in that area. Drilling has commenced and is anticipated to take about three months to complete with two drill rigs in operation.

To view, "Figure 1. Planned summer drilling program in the Current Lake Intrusive Complex," please visit the following link: http://media3.marketwire.com/docs/fig1mmw516.pdf

Refer to Magma's announcement of February 7, 2011, for information on mineral resource estimates, including the calculation of platinum equivalents.

Reconnaissance drilling in the western part of this area, up to 200m east of the current mineral resource, recorded encouraging intersections of mineralization (reported in an ASX announcement on May 6, 2011).

The main area to be tested by the drilling program contains three prominent geophysical anomalies. These comprise large coincident gravity and induced-polarization (IP) anomalies together with an overlapping magnetic anomaly (Figure 2).

To view, "Figure 2. Gravity, IP and magnetic geophysical anomalies in relation to the planned summer drilling program," please visit the following link: http://media3.marketwire.com/docs/fig2mmw516.pdf

The origin of these anomalies is not well understood although their coincidence is an encouraging positive factor in the context of the drilling (Figure 2).

"This drilling program is an important part of our strategy for growing the resource base for the project. We know the intrusive complex extends for at least another 2km to the east of the area being tested by this program and future drilling will also target this area" said Dr Keith Watkins, Magma's Executive Chairman.

Technical Information

Additional information on Magma and its projects, including descriptions of its quality control and assurance procedures, is available on its website at www.magmametals.com.au and in technical reports filed under the Company's profile on the SEDAR website at www.sedar.com.

For information on Mineral Resources, please refer to the Company's announcement dated February 7, 2011, available on the Company's website at www.magmametals.com.au.

Drill-hole location and detailed assay data for drill-holes mentioned in this report but not provided herein have been provided in previous announcements. These are available on the Company's website at www.magmametals.com.au.

Assays were conducted at the ALS Laboratory Group facility in Vancouver, British Columbia, following sample preparation at the ALS facility in Thunder Bay, Ontario.

Competent & Qualified Persons Statement

The information in this report that relates to Exploration Results or Mineral Resources is based on information compiled, reviewed or prepared by Dr Keith Watkins and Dr William Stone, the Executive Chairman and Vice President Exploration - Canada of Magma Metals Limited, respectively, who are both Members of the Australasian Institute of Mining and Metallurgy, and each of whom is a "qualified person" as such term is defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Dr Watkins and Dr Stone have sufficient experience, which is relevant to the style of mineralization and type of deposit under consideration and to the activities undertaken to qualify as Competent Persons as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the JORC Code). Dr Watkins and Dr Stone consent to the inclusion in the report of the matters based on this information in the form and context in which they appear.

Cautionary Statement

Certain information contained in this report constitutes "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" , "is expected", "estimates", "intends", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Although management believes that the expectations expressed in such forward-looking information disclosed herein are based on reasonable assumptions, these statements are not guarantees of future performance. A number of factors could cause actual results, performance or achievements to differ materially from those in the forward-looking information. Such factors include future metal prices, exploration and evaluation results, future availability of capital and general economic, market or business conditions, government regulation of mining operations, failure of equipment or processes to operate as anticipated, risks inherent in mineral exploration and development including unusual or unexpected geological formations. Descriptions of these risks can be found in the Company's various statutory reports, including its Annual Information Form available on its website at www.magmametals.com.au and on the SEDAR website at www.sedar.com.

ABN 72 114 581 047

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