Mustang Minerals Corp. Announces Mayville East Drilling

Toronto, Ontario CANADA, June 12, 2013 /FSC/ - Mustang Minerals Corp. (MUM - TSX Venture), ("Mustang" or the "Company") today announced an update to its exploration program at its Mayville Property located in southeastern Manitoba. The Company has completed a first phase drill program testing the eastern strike extent of the Mayville Cu-Ni deposit and all assays have been received.

Drilling results indicate the potential for additional tonnage east of the limits of the known Mayville Deposit where the deposit remains open to depth. The new drilling also shows potential in this area of the resource for higher grade intervals. Base metal mineralization was found over 300 meters east of the previously known eastern limits of the Mayville resource. Drill sections and a revised long section showing the new drilling in relation to the February 2013 resource estimate have been posted on the Mustang website.


Summary Drilling Results

Significant intercepts were returned from the following drillholes.

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Drillhole From To Width Nickel Copper TPM Silver
(m) (m) (m) % % g/t g/t
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MAY-13-146 99.00 103.81 4.81 0.08 0.34 0.17 0.81
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and 114.57 125.65 11.08 0.18 0.58 0.15 0.91
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May 3-149 96.50 98.50 2.00 0.01 1.34 0.03 2.25
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May13-153 7.94 21.30 13.36 0.23 0.74 0.29 2.19
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MAY-13-156 33.53 41.43 7.90 0.44 1.24 0.66 3.1
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Including 34.46 35.01 0.55 2.17 0.32 1.8 4.0
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and 53.75 62.00 8.25 0.11 0.29 0.18 0.5
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and 85.00 89.00 4.00 0.23 0.68 0.46 1.44
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TPM= Gold+Platinum+Palldium
Width= Core width


Mayville East Extension

The primary objective of the drill program was to test for potential base metal mineralization at the east end of the Mayville Deposit and further define the on strike potential to the east. An important intercept was drill hole MAY-13-146 (11.08m of 0.58% Cu. 0.18% Ni from 114.6 m ) which successfully tested the updip extension of MAY-12-143 which intersected mineralization (18.53 m of 0.56% Cu, 0.16% Ni, 0.90g/t Ag and 0.21 g/t TPM) at a depth of 174.47 meters (see NR, Dec 10th, 2012). These two holes were drilled approximately 240m east of the last fence of drill holes in the present Mayville resource.

Drilling further to the east encountered narrower intervals of copper mineralization including 2.0m at 1.34% Cu in MAY-13-149. Overall, mineralization now extends approximately ~340m past the previously defined limit of the Mayville resource. Borehole EM will be required to further assist with drill targeting of the Mayville East area and assist the Company in the next phase of resource drilling.

Drill hole MAY-13-156 was notable in that it intersected two mineralized intercepts including a 0.55m interval of massive sulphide that assayed 2.1% nickel and 1.34 g/t TPM within 7.9m which assayed 0.44% nickel and 1.24% copper starting from 33.5m downhole depth. MAY-13-156 was drilled to test the up dip extent of mineralization in Falconbridge historic drill hole M-21 which intersected 16.9 m grading 1.39% copper and 0.17% nickel from 118.8 m. MAY 13-156 was in the area of a large undrilled gap in near surface drilling at the east end of the deposit where the other widely spaced near surface holes intersected strong base metal values. The hole was drilled 100m east of MAY06-50 which intersected 0.79% Cu and 0.34% Ni over 15.2m from 15.8 downhole depth and 50 meters west of May06-43 which intersected numerous significant values. ( see longsection).

Elsewhere, two large geophysical targets defined by airborne EM and IP in the near proximity to the Mayville Deposit were drill tested but did not yield significant base metal values. These included:

1. Drillhole MAY13-152 which tested the interpreted north margin of the Mayville Intrusion. The strong geophysical conductor that was the target was not explained.

2. Two drill holes (MAY13-144/145) which were drilled up to one kilometer east the Mayville Deposit. Both holes intersected favourable gabbroic rocks and contained anomalous nickel values but no significant sulphide accumulation as would be expected from the geophysical target.

Follow up down hole geophysics is considered warranted in both of these areas.

Discussion

The drilling has added to the resource potential of the eastern part of the Mayville Deposit and intersected some good grade open pit intervals close to surface. Other drilling confirmed that the favourable host rocks extend along strike further east of the known limits of mineralization The Company is encouraged by the results and will continue exploration efforts aimed at increasing the quality and size of the resource base at Mayville.


Other Activities

The Company has recently contracted a heliborne EM survey over the far eastern portion of the Mayville Intrusion, approximately 5 km east of the Mayville Deposit, which covers several known occurrences of Mayville style base metal mineralization in gabbroic rocks. Data collection has been completed from the survey and following receipt of the survey data, this information will be compiled with the surface sample data and known historical occurrences and a summary will be outlined. The Company has commenced field mapping to sample known occurrences in the area and to ground proof geophysical target areas. There has been limited exploration activity in the area and largely for pegmatites. The initiative is considered a low cost high potential effort to increase the overall economic mineral potential in the area of the Mayville Intrusion - large parts of which have very limited exploration.

Mustang has initiated work on a Preliminary Economic Analysis focused on the resources/reserves at Makwa and Mayville. Current ore reserves and mineral resources at Mustang's two deposits are:


Makwa Ni-Cu Deposit

NI 43-101 Probable Ore Reserve Estimate of 9.86 million tonnes containing 0.541% nickel, 0.113% copper 0.433 g/t combined PGM. (reserve estimate completed February 2010 by Micon International Limited)

Mayville Cu-Ni Deposit

NI 43-101 Indicated Mineral Resource estimate is 24.3 million tonnes containing 0.45% copper, 0.19% nickel. Inferred mineral resource estimate is 4.1 million tonnes containing 0.45% copper and 0.18% nickel. (Feb.2013 RPA Inc.)

QA/QC Program

All core samples are sent to Accurassay Laboratories in Thunder Bay, Ontario. Analysis is completed for nickel, copper, cobalt and silver using an Aqua Regia digestion followed by AAS/ICP finish. For gold, platinum and palladium, fire assay of 30g aliquots followed by combination fire assay and AAS finish is employed. Drill core is logged and split on the Makwa site by Mustang personnel with half the core retained and stored. Mustang implements a QA/QC program on drill core including inserting blanks, duplicates and commercial standards at regular intervals with all core sample submissions to the laboratory.



Carey Galeschuk P.Geo. is the National Instrument 43-101 Qualified Person for Mustang Minerals Corp. and has approved the contents of this release.

Western Areas Ltd (ASX:WSA) owns a ~19% equity interest in Mustang.

To find out more about Mustang Minerals Corp. (TSX-V: MUM)
visit our website at www.mustangminerals.com or contact:
David Black, Investor Relations
Telephone 416-955-4773 email: info@mustangminerals.com

We seek safe harbour.

This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (together, "forward-looking statements"). Such forward-looking statements may include the Company's plans for its mineral projects in Manitoba, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risk, uncertainty of production and capital costs estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of nickel and other metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Management Discussion and Analysis for the most recent financial period and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.

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

To view this press release as a webpage, please click on the following link:
http://www.usetdas.com/pr/mustang06122013.pdf


Source: Mustang Minerals Corp. (TSX-V: MUM) http://www.mustangminerals.com
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Source: Filing Services Canada (June 12, 2013 - 7:00 AM EDT)