Trelawney Mining and Exploration Inc.

Trelawney Mining and Exploration Inc.

January 14, 2011 14:59 ET

Trelawney Adopts Shareholder Rights Plan

TORONTO, ONTARIO--(Marketwire - Jan. 14, 2011) - Trelawney Mining and Exploration Inc. (the "Company" or "Trelawney") (TSX VENTURE:TRR) announces that Board of Directors has approved the adoption of a new shareholder rights plan (the "Rights Plan"), designed to ensure, to the extent possible, that all shareholders of the Company are treated equally and fairly in connection with any take-over bid for the outstanding securities of the Company, and to provide sufficient time for all shareholders to consider any such transaction. The Rights Plan was not adopted in response to any proposal to acquire control of the Company.

Under the terms of the Rights Plan, one right (a "Right") will be issued by the Company in respect of each outstanding common share (a "Common Share") of the Company held. The Rights become exercisable only if a person acquires or announces its intention to acquire 20% or more of the Common Shares without complying with the "permitted bid" provisions of the Rights Plan. Should such an acquisition occur, Rights holders (other than the acquiring person or group) can purchase Common Shares at a substantial discount to the market price of the Common Shares at that time.

The Rights Plan was implemented to replace a similar plan adopted by the directors of the Company in March 2010 as a result of the appointment of Equity Financial Trust Company as the new transfer agent of the Company.

The Rights Plan is subject to ratification by shareholders at the Company's next annual meeting of shareholders.

A copy of the Rights Plan is available on the Company's SEDAR profile at

Trelawney is a Canadian junior mining and exploration company with a focus on Archean gold deposits. The Company's current focus is directed towards the development and continued exploration of the Chester Project, located in Chester Township 20 kilometres southwest of Gogama, Ontario.

This press release contains certain forward-looking statements, which are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected. Trelawney undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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