Medallion Announces $300,000 Private Placement Financing

	    TSX.V: MDL

	    VANCOUVER, Oct. 5 /CNW/ - Medallion Resources Ltd ("Medallion" - TSX.V:
MDL) announces that, subject to TSX Venture Exchange approval, it has arranged
a non-brokered private placement of up to three million units (a "Unit") at
$0.10 per Unit for gross proceeds of up to $300,000 (the "Offering"). Each
Unit consists of one common share and one non-transferable common-share
purchase warrant (a "Warrant"). Each Warrant shall be exercisable to acquire
one common share at a price of $0.20 for a period of 24 months from closing of
the Offering ("Closing Date"). Medallion has agreed to pay a cash finders' fee
of 10% of the proceeds raised and grant finders' warrants equal to 10% of the
Units sold. Finders' warrants shall be exercisable to acquire Units at a price
of $0.10 per Unit for a period of 24 months from the Closing Date. The Units
purchased through the exercise of finders' warrants shall have the same terms
and restrictions as the Units of the Offering. The Unit shares and warrants
shall have a four-month hold period. The proceeds of the offering will be used
for acquisition of rare-earth and lithium properties, working capital and
other corporate purposes.

	    Medallion Resources Ltd. focuses on exploration for rare-earth elements
(REE's), lithium and other metals required by the new energy-saving
technologies. Increasing interest in energy conservation and environmental
protection are fuelling intense interest in REE's and lithium. Medallion is
well positioned to take part in the exploration for, and potential development
breakthroughs of these commodities as understanding, demand and
public-awareness increase.

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	    ON BEHALF OF THE BOARD OF DIRECTORS

	    "William H Bird", PhD, PGeo,

	    President & CEO
	    >>


	    Company Management, takes full responsibility for content, prepared this
news release. The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. Some of the
statements contained in this release are forward-looking statements, such as
estimates and statements that describe the Company's future exploration and
financing 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 these
statements. Such risks include expectations that may be raised by discussing
potential acquisitions. Also, in order to proceed with the Company's
exploration plans, additional funding is necessary and, depending on market
conditions, this funding may not be forthcoming on a schedule or on terms that
facilitate the Company's plans.






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	    /For further information: check Medallion's web site
www.medallionresources.com, call (888) 827-6611 or e-mail
williambird@medallionresources.com/