December 11, 2009

MetalCorp Limited Announces Inferred Resource Playter Molybendum-Rhenium Property

  • Inferred resource of 0.9 million tonnes grading 0.25% molybdenum, 1.67 g/t rhenium and 3.38g/t silver
  • Deposit open at depth
  • Pre-2006 drill results of uppermost vein system not included in current resource estimate

Toronto, Ontario Canada (December 11, 2009) - MetalCorp Limited (TSX-V: MTC) announces the results of the first mineral resource estimate for its 100% owned Platyer Moly-Rhenium project near Marathon, Ontario prepared by AMEC Americas Ltd. ('AMEC'). A Technical Report in compliance with Canadian National Instrument NI-43-101 will be filed on SEDAR within 45 days of this release and will then be posted on MetalCorp's website.

Highlights of the AMEC report include:

- inferred resource of 874,410 tonnes grading 0.25% molybdenum, 1.67g/t rhenium and 3.38g/t silver;

- Mo-Re-Ag mineralization is hosted by an east-west trending sub-vertical quartz vein which varies in thickness between 1 and 10 metres and is approximately 1km long;

- Continuity of the quartz vein has been well-established by drilling along 700 metres of strike length and to a depth of 600 metres;

- Based on historic drill information not included in the currently-reported inferred resource, the potential exists to increase the resource from surface to 200-metre depth.

The mineral resource modeling and estimation for the Playter moly-rhenium deposit was completed by AMEC using an inverse distance to the fifth power (ID5) approach. AMEC confirms that the data density and quality are sufficient to classify part of the molybdenum/rhenium/silver-bearing quartz vein as a mineral resource in the Inferred Mineral Resource category. Block values were calculated on a break-even value of CAD$48/tonne (assuming a mining cost of CAD$26 per tonne, milling cost of CAD$17 per tonne and G&A cost of CAD$5/tonne). Of the 23 holes drilled by MetalCorp, 14 were used to calculate the current resource. In addition, not all blocks in the block model had sufficient exploration drill results to be included in the mineral resource. All technical parameters are fully disclosed in the AMEC report.

The inferred resource has an effective date of November 23, 2009, and was estimated using a molybdenum price of US$11.50/lb, rhenium price of US$8,000/kg and silver price of US$11.50/oz with sensitivities calculated at both lower and higher metals prices.

Between late-2006 and mid-2008, MetalCorp drilled the Playter Mo-Re property to intersect the mineralized zone at depths from approximately 200 metres to 600 metres below surface.

Although historical drilling and surface exposures have demonstrated continuity of mineralization within the upper 200 metres of the vein, the first 200 metres of the deposit was not drill-tested by MetalCorp and no retained core from the historical drilling has been recovered. However, the AMEC report states that historical drilling indicates that positive results from that part of the vein can be anticipated and should be drilled by MetalCorp. The historic results were obtained prior to 1994 and retained insufficient documentation to establish adequate data verification and quality control to be included in the resource estimate.

Targets include areas in the immediate vicinity of the mineral resource, where there is insufficient drill information to define a mineral resource. AMEC recommends additional exploration on these unestimated blocks and suggests that their potential is on the order of 650,000 to 850,000 tonnes at grades ranging from 0.1% to 0.3% molybdenum, 1.0 g/t to 2.0 g/t rhenium, and 3.0 g/t to 4.0 g/t silver.

In addition, AMEC recommends that a second conceptual target, 250 metres to 300 metres down-plunge to the west of the higher-grade core of the existing mineral resource, and with a potential of 750,000 to 1,250,000 tonnes at grades similar to that of the resource, be explored. The tonnes and grade of these targets are conceptual in nature, as there has been insufficient exploration to define mineral resource, and it is uncertain if further exploration will result in the targets being delineated as a mineral resource.

"AMEC was unable to calculate a resource estimate on some parts of the mineralized zone within the first 200 metres from surface or on large parts of the zone from 200 to 600 metres below surface because of a lack of current drill results in those areas. That is obviously a disappointment to MetalCorp," commented Naomi Nemeth, President and CEO. "At the outset of this project, MetalCorp's objective was to outline significant tonnage at a grade of roughly 0.10% molybdenum. While the actual grade was substantially higher than originally anticipated, the tonnage, according to the data included, was significantly lower."

"While this mineral resource is a key milestone for MetalCorp's progress in evaluating the potential of the Playter project, it is important to understand that both markets and commodity prices have changed dramatically since this study was begun in June 2008. Both are considerations that MetalCorp's board and management team will take into account when determining the priority of this project within MetalCorp's portfolio of high-quality gold and base metal projects."

Subsequent to the completion of AMEC mineral resource estimate, MetalCorp entered into a Memorandum of Understanding with the Pic River First Nation, the First Nation in closest proximity to the Playter project.

Nikki Grieco, P.Eng. and Richard Kilpatrick, P.Geo., both employees of AMEC Americas Limited, are qualified persons (as defined by National Instrument 43-101) and have prepared the scientific and technical information on the Playter project that forms the basis of this press release.

MetalCorp Limited is a mineral exploration company based in Thunder Bay, Ontario with gold and base metal projects in the Canadian Shield of Northern Ontario, Canada, one of the most prolific mineral districts in the world. The projects, with a total area of more than 85,000 acres, include the Hemlo East, Dorset, Pickle Lake, Black Bear and Keezhik Lake gold properties, the Big Lake copper-zinc-silver-gold property, and the North Rock copper-nickel-platinum property. MetalCorp has 49,106,636 common shares outstanding and approximately $1,000,000 in cash and no long-term debt. To find out more about MetalCorp, please visit the website at www.metalcorp.ca.

Certain statements contained in this news release may constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to our future outlook and anticipated events or results and may include statements regarding the expected infilling of intervening intercepts and the timing of the updated report. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue", "does not expect", "budget", "scheduled", "forecast" or other similar expressions concerning matters that are not historical facts. These statements are based on certain factors and assumptions regarding expected developments. While we consider these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect.

Forward looking-information involves known and unknown risks, uncertainties and other important factors that could cause actual results, performance or achievements of the Company to differ materially from the future results, performance or achievements expressed or implied by such forward looking information. Such risks, uncertainties and other important factors include, without limitation: general economic conditions; access to skilled consultants; the possibility that future exploration results will not be consistent with the Company's expectations; uncertainties involved in interpreting drilling results; unanticipated costs and expenses; timing and availability of external financing on acceptable terms; dependence on key personnel; future prices of precious and base metals; failure of equipment or processes to operate as anticipated; and risks inherent in mining exploration and development including, but not limited to, unusual or unexpected geological formations. Such factors are also described or referred to under the headings "Property and Financial Risk Factors Affecting Financial Instruments" and "Other Risk and Uncertainties" of the Company's Management's Discussion and Analysis for the quarter ending September 30, 2009, all of which are incorporated by reference herein and are available at SEDAR atwww.sedar.com. We caution that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on MetalCorp's forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail.

You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. The Company undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events except where required by applicable laws.

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

For further information, please contact:
Naomi Nemeth, President and CEO
T: +1 416 363 9428
E: naomi(dot)nemeth(at)metalcorp(dot)ca