Mustang Minerals Corp.
TSX VENTURE : MUM

Mustang Minerals Corp.

January 02, 2007 08:30 ET

Western Areas Nominates Julian Hanna to Mustang Minerals Board

TORONTO, ONTARIO--(CCNMatthews - Jan. 2, 2007) - The Board of Directors of Mustang Minerals Corp. (TSX VENTURE:MUM) is pleased to announce that Julian Hanna, the Managing Director and CEO of Western Areas NL, an Australian based nickel producer has joined the board of directors of Mustang. Julian Hanna has extensive industry experience including his recent tenure with Western Areas which has seen that company acquire, develop and commence underground nickel production from the Flying Fox Mine in the Forrestania Nickel Belt, located in Western Australia.

Mr. Hanna is joining the Mustang Board as part of private placement agreement between Western Areas and Mustang. Western Areas has acquired 8,571,429 common shares of Mustang as a strategic investment and has the right to acquire up to and maintain a 19.9% interest in Mustang. The majority of funds from the placement are planned to be used for a feasibility study to bring the Maskwa Nickel Project in Manitoba Canada into production.

With thirty years experience as a geologist in gold and base metal exploration and mine development Mr. Hanna brings a wealth of relevant experience to the Mustang Board Previously Julian held senior exploration management positions in the Australian industry and has been involved in the discovery and development of several gold and base metal deposits. He has a BSc in geology and is a member of AusIMM. As Managing Director and CEO of Western Areas NL Julian Hanna has presided over the start up and growth of Western Areas to a company with a current market capitalization of over C$550 million. Western Areas growth has been primarily based on the development of Flying Fox, one of the highest grade nickel deposits in the world with other significant nickel assets now undergoing development.

Mustang Minerals and Western Areas NL as a strategic investor in Mustang are both focused on progressing the Maskwa Nickel Project to production as expeditously as possible. To this end Western Areas will be sending four experienced mine development people to Canada in January 2007 to assist with project development.

Maskwa contains a National Instrument 43-101 compliant nickel resource. A large part of the Indicated Mineral Resource at Maskwa (5.2 million tonnes at 0.68% nickel and 0.15% copper) is classified as Open Pit Mineralization by independent consultants Scott Wilson Roscoe Postle Associates Inc. in a report dated February 18, 2005. The project is located 150 km from Winnipeg, Manitoba with excellent infrastructure. A Scoping Study is currently being completed by Micon International Limited and is expected to be completed early in 2007.

Mustang also announces the departure of Kenneth J. Lapierre who has resigned as a non-executive director of Mustang. Mr. Lapierre was the Vice President Exploration of Mustang from the company's inception to May 2006 and was a non-executive director until his recent resignation. The Board thanks Ken for his integrity, hard work and commitment to Mustang and wishes him success in his future endeavours.

FlowThrough Financing Completed

Mustang also closed its previously announced private placement of flow-through units subject to final regulatory approval. The non-brokered private placement financing was increased to 591,000 flow-through units at a price of 55 cents per unit for gross proceeds of $325,050. Each unit consists of one flow-through common share and one-half of one share purchase warrant. Each whole warrant will entitle the holder to purchase one common share or one flow-through common share of the company (at the sole discretion of the company) at a price of 65 cents for a period of 18 months from the date of issuance.

Proceeds of the offering will be used to finance exploration activities of the company at its Canadian mineral properties. The securities issued are subject to a hold period of four months and one day from the date of closing. A finder's fee of 6 per cent in cash of the gross proceeds of the offering has been paid to qualified selling agents.

To find out more about Mustang Minerals Corp. (TSX VENTURE:MUM) visit our website at www.mustangminerals.com

Shares Outstanding: 61,803,845

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