Mustang Announces Mayville Exploration-Financing

TORONTO, ONTARIO -- (Marketwire) -- 12/01/11 -- Mustang Minerals Corp. (TSX VENTURE: MUM)(FRANKFURT: NJF) ('Mustang' or the 'Company') today announced plans to complete a non-brokered financing for gross proceeds of up to $4,800,000. The proceeds from the financing will be used primarily for the Makwa Nickel Project feasibility study and exploration at the Company's Mayville Cu-Ni-PGM Property. Through its exploration program focusing on the PGE and base metal potential at the Mayville Property the Company has outlined a number of high priority targets for drilling set to commence in January 2012.

The financing will consist of a concurrent private placement of non-flow-through Common Shares and FlowThrough Shares (the 'Offerings'). The Common Share Offering will be for Common Shares of Mustang priced at $0.10 per share. The Flow Through Offering will be for common shares issued on a flow-through basis (the 'Flow-Through Shares') and will be priced at $0.12 per share. The Offerings will be made pursuant to exemptions from the prospectus requirements of the applicable securities laws. Shares issued under the Offerings will be subject to a hold period of four months and one day from date of closing.

Western Areas NL, which currently owns over 19 % of the equity of Mustang, will subscribe for a portion of the offering. Western Areas is the third largest nickel producer in Australia.

Feasibility Study Update

Key components of the feasibility study that are currently being completed are metallurgical testing, site hydrological studies, tailings and waste rock management design. Metallurgical testwork is being completed at SGS Laboratories in Perth, Western Australia. Following successful completion of metallurgical work the flow sheet and plant design is scheduled to commence.

Golder Associates is addressing site hydrological balance studies - in part to address potential water inflows into the pit. Site pump test and water well monitoring have recently been completed. This data will be used to help establish site wide water balance. Golder is also working on the tailings and waste rock design scope of work for the project

Mayville Exploration Update

Mustang has recently completed geological mapping and humus geochemical sampling over a significant portion of the Mayville Intrusive Complex. Geological mapping has better defined the host rocks of the M2 Deposit, Hititrite and the PGE Zones. All three zones have yielded significant base and or precious metal drill results to date. Notably the geological mapping has traced the host rocks of the PGM zone for approximately 1 km on strike of the drilling that intersected the significant PGM values.

An orientation study using humus and tree bark as a sample media was initially carried out over the M2 and Hititrite Zones. The results showed that humus sampling is the better media type for detecting Cu-Ni-PGE mineralization at Mayville. Following through on this test work, an extensive humus geochemical sampling program has also been completed over 5 kilometers of perspective ground that has the same geological units as those that host the M2, Hititrite and PGM zones. Analyses from these samples are pending. The humus results will aid in prioritizing which of the multiple VTEM anomalies present on the property will be drill tested in early 2012.

The Company has also engaged Crone Geophysics to complete a ground electromagnietic survey over the M2 Zone. This survey is designed to look for additional copper nickel mineralization at depth and along strike. Work has recently been completed and results are pending. The Company completed additional IP work over part of the property earlier in the year following the drill discovery of the PGE Zone. A number of significant anomalies have been identified. Results from this work are being added to an integrated GIS database for the Mayville Property. Priority target areas will be drill tested in early 2012.

Mustang President Mr. Robin Dunbar commented that: 'the exploration program planned for Mayville will attempt to build on the drill discovery of 2011 and the NI43-101 Cu-Ni open pit resource. We will attempt to utilize the results of systematic exploration program implemented by the Mustang exploration team during the year to make a significant increase in the resource at Mayville in 2011 As well Mustang will continue to advance the feasibility study at Makwa'.

Makwa and Mayville Deposits

A NI 43-101 reserve estimate for the Makwa Project completed in February 2010 by Micon International Limited outlined 9.86 million tonnes in the Probable Ore Reserve category containing 0.541% nickel, 0.113% copper 0.433 g/t PGM at the Makwa Project. The project is planned to include relocation of a nickel concentrate plant to site and is expected to produce approximately 4,000 tonnes of nickel in concentrate per annum plus copper and platinum group metals credits. The Makwa deposit is open at depth.

In addition, Mustang has a second open pit resource in the Makwa Project area. The Mayville Project is located approximately 35 km by road from Makwa and has a NI 43-101 Indicated Resource of 9.23 million tonnes containing 0.61% copper, 0.23% nickel and 0.174 g/t palladium. Mustang is completing additional exploration at Mayville and the adjoining Tanco Property where a strong and previously undrilled VTEM conductor was announced on October 20, 2010. This new target is located in a similar geological setting to Mayville and is regarded as a high priority target for drilling in early 2012.

Carey Galeschuk P.Geo. is the National Instrument 43-101 Qualified Person for Mustang Minerals Corp.

To find out more about Mustang Minerals Corp. (TSX VENTURE: MUM) visit our website at www.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.

Shares Outstanding: 157,511,174

Contacts:

Mustang Minerals Corp.

David Black

Investor Relations

416-955-4773
info@mustangminerals.com