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General Metals Corp Prepares For Phase 1 Shallow Drilling Program and Undertakes Expansion Program for Phase 2 Deep Drilling.

RENO, Nev. -- General Metals Corporation (OTCBB:GNLM) is pleased to announce that planning for its Phase 1 shallow drilling program is now underway. An initial Phase 1 budget of $1,350,000 is being pursued by our international mining finance consultants. According to Akright in his 1997 report, "the gold resource potential of the Independence property occurs in two distinct categories: a shallow open pit mineable target, suitable for heap leach and a deep underground target. Insufficient drilling has been done to calculate a proven or probable reserve for the shallow target. However, mineralized material containing 235,000 ounces of gold and 2,500,000 ounces of silver have been estimated by Carrington (1997)....the deep target could contain mineralized material with 1.4 million ounces of gold." The deep target will be pursued in a Phase 2 drilling program, while the shallow target is our focus in Phase 1 for near term development leading to early cash flow.

Our Phase 1 2007 exploration drilling campaign is designed to bring the shallow target into a resource category, according to SEC Industry Guide 7 and allow the preparation of a mine model to guide us in the best economic solution to mining the shallow mineralized material. Our development program will also involve the permitting and construction of a cyanide heap leach pad that will accommodate 5-6 million tons of mineralized material. The gold and silver is planned to be recovered by a Merrill Crowe processing system, with precipitate being smelted on site and shipped to the refinery as a gold and silver bar (dore). Management has recently constructed and operated a similar project for another company in Nevada's Comstock Lode.

The Company's President and CEO, Steve Parent commented "We look forward to drilling our shallow depth target. Given the estimation provided by Carrington and the encouraging yield of Newmont's Phoenix Mine, which contains 8.5 million ounces of gold and 660 million pounds of copper, surrounding the Independence Mine, we could see a tremendous benefit to the company and our shareholders by the results of our Phase 1 drilling program."

The Company has entered into substantive discussions to expand the size and scope of its Phase 2 deep drilling target which currently has about 2 million ounces of gold identified from previous deep drilling by Noranda (25,000 feet). Should we successfully conclude our expansion plans, the deep target could then contain up to 5 million ounces according to Carrington (1997). The Phase 2 budget will be determined once the expansion stage is complete. Financing for Phase 2 will be the subject of a future finance program.

The Company announced on May 2, 2006 that it had identified exploration opportunities in Ghana and is pleased to confirm that we are still considering the 225 square kilometers of authorized mining and reconnaissance concessions in an area within Newmont Mining's 50 mile radius from their Ahafo and Akyem open pit deposits. (Also see Phoenix Mine). The concessions are exploratory in nature but have already shown great surface potential with hundreds of concentrated pan samples that contain in excess of 30 grams per cubic yard of surface mineralized material. One of the concessions shares a boundary with Newmont, as does our Independence Mine in Nevada.

Notice Regarding Forward Looking Statements

This news release contains "forward-looking statements", as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, that the Company intends to proceed with Phase 1 or Phase 2 drilling at its Independence Mine in Nevada, the permitting and construction of a cyanide heap leach pad that will accommodate 5-6 million tons of mineralized material, the pursuit of any global acquisitions in Ghana, that an estimated additional 235,000 ounces of gold and 2,500,000 ounces of silver are contained in the mineralized material in the "Shallow Target", that, in addition to the shallow target, the "Independence Deep Target" may contain 2,000,000 ounces of gold, the retention of an international mining finance specialist and the completion of any subsequent financing for the funding of the Phase 1 drilling program.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration. We are not in control of metals prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-KSB for the 2004 fiscal year, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
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Publication:Business Wire
Date:Feb 15, 2007
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