Treasury Metals Inc.
TSX : TML

Treasury Metals Inc.

January 21, 2011 08:30 ET

Treasury Metals Re-Starts Drilling at Goliath and Updates Environmental Baseline Study

TORONTO, ONTARIO--(Marketwire - Jan. 21, 2011) - Treasury Metals Inc. ("Treasury Metals" or the "Company") (TSX:TML) is pleased to announce that it has recommenced its 20,000 metre diamond drilling program initiated in December 2010 at the Goliath Gold Project (see News Release dated 08/12/2010).The bulk of the 20,000 metres will be aimed at upgrading a significant portion of the gold ounces within the current mineral resource, from the Inferred category to the Indicated and Measured categories in order to begin a mine feasibility study on the project. Initially, focus will be on priority targets identified in the recent independent Preliminary Economic Assessment (see News Release dated 08/09/2010).Treasury Metals also continues to identify additional targets on the greater than 45km2 hectare Goliath property for drilling during 2011.

In addition, the Company is pleased to provide an update on the Environmental Baseline Study (EBS) that it commenced in November of 2010. The first component of the EBS covers the period from Fall 2010 to Fall 2011 and will examine the health of the ecosystem by studying ground and surface water quality, sediment quality, fisheries, terrestrial resources and soil quality. To date the Company has made significant progress on the EBS and is pleased to announce the completion of the preliminary Fall surveys for vegetation, surface water and fauna. Monthly surface water quality and flow sampling has been ongoing since Fall 2010.

About Treasury Metals

Treasury Metals Inc. is a Canadian mining company that is focused on expanding the Company's gold resources and developing its 100% owned flagship Goliath Gold Project located in the Kenora Gold District of Northwestern Ontario. The NI 43-101 compliant gold resource contains non-diluted underground Indicated Resources of 490,000 tonnes grading 5.7 g/t Au (90,000 ounces) and Inferred Resources of 5,200,000 tonnes grading 4.4 g/t Au (740,000 ounces) and surface Indicated Resources of 2,900,000 tonnes grading 1.9 g/t Au (180,000 ounces) and Inferred Resources of 5,400,000 tonnes grading 1.1 g/t Au (190,000 ounces). Treasury Metals also receives revenue from a Net Smelter Royalty its holds on Goldgroup Mining Inc.'s Cerro Colorado Mine located in Mexico.

Technical information in this press release has been reviewed and approved by Scott Jobin-Bevans, President of Treasury Metals, who is a qualified person under the definitions established by National Instrument 43-101.

For additional information on Treasury Metals and its projects, please visit the Company's website at www.treasurymetals.com.

Forward-looking Statements

This press release contains forward-looking statements such as the expected use of the net proceeds from the private placement, our future financial condition, business plans and objectives, results of operations and business. Such statements are based on operations, estimates, forecasts and projections. They are not guarantees of future performance or events and involve risks and uncertainties that are difficult to predict and may be beyond Treasury Metals' control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in forward-looking statements, including those set forth herein and in other public filings. In addition, such statements relate to the date on which they are made. Consequently, undue reliance should not be placed on such forward-looking statements. Treasury Metals disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws.

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