Yankee Hat Minerals Ltd.
TSX VENTURE : KHT

Yankee Hat Minerals Ltd.

August 29, 2007 14:36 ET

Yankee Hat Increases Activity on Fran Gold Project Based on Successful Winter Drilling Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 29, 2007) - Yankee Hat Minerals Ltd. (the "Company") (TSX VENTURE:KHT) is pleased to announce that a summer work program designed to follow-up on the very successful results received from the winter drilling program at the Fran gold project is underway. This program is intended to assess if the Fran prospect contains a potential porphyry system.

To date, drilling and exploration has focused on the North Contact Zone and indicates that the target is a structurally controlled vein system of low sulphidation with a mesothermal temperature regime. Given the regional environment, it is possible that the North Contact has been derived from a distal porphyry system as opposed to a simple polymetallic vein occurrence. This concept is being investigated in the current summer work program which includes induced polarization and soil geochemical surveys, prospecting, rock sampling, drill data compilation, and deposit modeling.

"Our exploration team is encouraged by the positive drill results we are getting from the North Contact Zone," said Brad Kitchen, President. "As we move towards the latter stages of defining a significant new gold deposit at the North Contact, property wide exploration will be focused on generating targets to test for higher level porphyry copper-gold systems."

The Fran property is located in the Toodoggone-Mt. Milligan district of central British Columbia approximately 60 km north of Fort St. James. The region is well known for its abundance of world-class porphyry deposits and mines, most notably Mount Milligan which is located 30 kilometers northeast of Fran and Northgate Minerals Kemess South mine approximately 250 km to the north. Most recently the discovery of a potentially significant porphyry copper-gold-molybdenum system by Serengeti Resources has precipitated a flurry of staking activity throughout the district.

The winter drilling program was completed in May and targeted the North Contact Zone; an area that is being explored by the Company with the aim of defining a significant near surface gold deposit. 17 holes were completed totaling 3,397 meters bringing the total meters drilled since 2005 to 5,918 meters in 36 holes.

The results of the program were highly encouraging and included some of the widest and highest grade intersections encountered on the property to date. A summary of these results include:

- 3.84 grams per tonne gold over 27.60 meters including a higher grade core of 10.62 grams per tonne gold over 8.30 meters in drill hole FR-07-74.

- 2.10 grams per tonne gold over 39.70 meters with higher grade cores of 5.99 grams per tonne gold over 7.40 meters, 3.14 grams per tonne gold over 7.00 meters, and 2.87 grams per tonne gold over 5.60 meters in hole FR-07-71.

- 1.69 grams per tonne gold over 16.90 meters including a higher grade core of 17.30 grams per tonne gold over 1.50 meters in hole FR-07-64.

- 1.01 grams per tonne gold over 30.60 meters including a higher grade core of 1.69 grams per tonne gold over 8.40 meters in hole FR-07-70.

- 27.86 grams per tonne gold over 0.60 meters and a separate zone of 1.13 grams per tonne over 13.65 meters in hole FR-07-75.

In addition to receiving some of the best intersections encountered to date, the Company was able to achieve its two main objectives:

1. In-fill drilling closed the 250 meter gap that was left between the western (FR-06-50A) and eastern (FR-06-62) halves of the North Contact system at the end of the 2006 program; effectively joining the system.

2. Exploratory drilling west of FR-06-55 increased the strike length of the deposit by 200 meters.

The North Contact Zone has now been confirmed to be continuously mineralized over a total strike length of 1,200 metres and remains open for expansion in both strike directions.

With respect to the summer work program currently underway, the 2007 drilling data is being compiled and analyzed in order to help create a geological model to guide forthcoming drilling programs. Future drilling at the North Contact will be aimed at gaining the data necessary to estimate an initial NI 43-101 compliant resource estimate for the zone.

In addition, Induced Polarization surveys are being completed on two target areas. Grid A in the southeast quadrant of the Fran property will target a significant airborne magnetic anomaly located by an earlier survey and Grid B in the north central area of the property is designed to cover a strong silt and soil geochemical anomalous area.

Wayne Murton, P. Eng. is the Qualified Person under National Instrument 43-101 who is supervising the Fran exploration program. All analytical work was completed by EcoTech Laboratories Ltd. of Kamloops B.C. using standard assay procedures for gold analysis; with any gold values greater than 1.00 g/t going to a metallics assay. 30 element I.C.P. has been completed on all samples.

For a location map of the drill holes in the North Contact area, please use the following link: http://www.yankeehatminerals.com/_resources/dplanjuly07.pdf

About Yankee Hat Minerals Ltd.

Yankee Hat Minerals is a Vancouver, British Columbia based, mineral exploration company that trades on the TSX Venture Exchange under the symbol KHT. Currently the company is actively exploring two gold projects in British Columbia: the Fran property located 60 kilometers north of Fort St. James; and the Union Mine property located 55 kilometers north of Grand Forks.

ON BEHALF OF THE BOARD

Brad Kitchen, President and Director

This news release has been prepared by management. This document contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or achievements implied by these forward looking statements. We seek safe harbor.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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