Trelawney Mining and Exploration Inc.
TSX VENTURE : TRR

Trelawney Mining and Exploration Inc.

December 04, 2007 08:00 ET

West Timmins and Trelawney Expand La Bufa Copper-Gold-Silver Project

TORONTO, ONTARIO--(Marketwire - Dec. 4, 2007) - West Timmins Mining Inc. ("West Timmins"), on behalf of its wholly owned Mexican subsidiary Minera Golondrina S. De R.L. De C.V., and Trelawney Resources Inc. ("Trelawney") (TSX VENTURE:TRR) announced today they have jointly entered into a Letter of Intent to acquire a combined 100% interest in the La Bufa Azteca Property located in Chihuahua, Mexico. The 135 square kilometre La Bufa Azteca Property adjoins West Timmins La Bufa Property and hosts the former producing Caballero Azteca gold deposit and a number of similar copper-gold vein occurrences.

The Caballero Azteca deposit was mined by hand during the 1930's and is interpreted to represent the upper, gold-rich portion of a vertically zoned copper-gold system similar to the Carmen Mine on West Timmins La Bufa Property. Historical records indicate that the Carmen Mine produced approximately 1 million tonnes of copper and gold ore at average grades of 2.50% copper, 2.80 g/t silver and 2.90 g/t gold between 1947 and 1958.

Historically reported sampling of the Caballero Azteca gold zone by Fransisco Gold and COREMI (the Mexican Geological Survey) has returned between 0.30 and 50.00 g/t gold and 6.65 to 29.70 g/t silver from grab samples of both in place and dump material. Recent chip sampling by the property vendor of silicified breccias in the walls of the Caballero Azteca gold zone returned 4.04 g/t gold over 6.0 metres.

"We are pleased to have reached an agreement on a project with such good potential from such a competent group as Minera Cascabel," said Wayne O'Connor, President and CEO of Trelawney Resources Inc. "This agreement will expand Trelawney's foothold in Mexico while we will continue to advance our gold project in Wawa, Ontario."

Under the terms of the Letter of Intent with vendor Minera Cascabel S.A de C.V. ("Cascabel"), West Timmins and Trelawney will have the right to earn a 100% interest in the La Bufa Azteca Property by making series of cash payments and issuing payments of common shares in favour of Cascabel over four years, and annually completing twice the minimum annual work expenditures on the property required under Mexican law. West Timmins may vest its 50% interest in the property by making cash payments totalling $135,000 in years 3 and 4 of the proposed Option Agreement and issuing 225,000 commons shares over four years. Trelawney will fund the initial US$1,000,000 in exploration expenditures on the combined La Bufa and La Bufa Azteca Property position (the "La Bufa Project"). West Timmins will be the operator of the La Bufa Projects. Trelawney can vest its 50% interest in the property by making cash payments totalling US$270,000 and by issuing 850,000 shares over 4 years. Upon successful vesting of their respective 50% interests West Timmins and Trelawney will grant to Cascabel a 1% NSR royalty on base metal and a 2% NSR royalty on precious metal production from the La Bufa Azteca Property. West Timmins shall also, subject to successful vesting of its La Bufa Azteca interest, grant to Cascabel a 1% NSR royalty on its adjacent La Bufa Property. The Letter of Intent and contemplated Option Agreement are subject to final board and regulatory approvals.

The La Bufa Project is located in south-western Chihuahua State, Mexico. The La Bufa Project is road accessible and is located 15 kilometres east of Mag Silvers multi-million ounce silver deposit, 25 kilometres east of Goldcorp's El Sauzal Gold Mine and 75 kilometres east of West Timmins Montana de Oro Project.

Minera Cascabel S.A. de C. V. is Mexico's largest geological consulting company. Cascabel was founded in 1988 by partners Dr. Peter Megaw, Carl Keuhn and Porfirio Padilla. Cascabel acts as the primary geological consultants for West Timmins in Mexico. In that capacity they have been responsible for bringing to the attention of West Timmins the Montana de Oro, Lluvia de Oro, Universo and La Bufa Projects. Cascabel also identified the Juanicipio project for West Timmins sister Company MAG Silver which hosts a high-grade silver-lead-zinc-gold discovery in the Fresnillo silver camp of central Mexico.

Mr. Darin Wagner (M.Sc., P.Geo.), the President and CEO of West Timmins Mining Inc., has acted as non-independent qualified person for this news release. The qualified person has visited the project site and reviewed both the historic records and more recent analytical results which have been confirmed by due diligence sampling conducted on behalf of West Timmins.

Trelawney is also the largest land holder in the entire Wawa/Hemlo mining camp with approximately 21,000 acres now under its control. The Company's neighbour, gold producer Wesdome Gold Mines Ltd. holds approximately 16,000 acres. Trelawney has assembled the largest land package in this area since the Hemlo staking rush in the 1980s. The consolidated property contains over 48 known gold occurrences including The Dorset Gold Deposit where Trelawney recently announced an indicated and inferred gold resource.

Shares Issued: 73,530,188

Statements in this press release regarding the Company's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.

This press release contains forward looking statements within the meaning of applicable Canadian and U.S. securities regulation, including statements regarding the future activities of the Company. Forward looking statements reflect the current beliefs and expectations of management and are identified by the use of words including "will", "anticipates", "expected to", "plans", "planned" and other similar words. Actual results may differ significantly. The achievement of the results expressed in forward looking statements is subject to a number of risks, including those described in the Company's annual information form as filed with the Canadian securities regulators which are available at www.sedar.com. Investors are cautioned not to place undue reliance upon forward looking statements.

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.

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