Iron South Discovers New Targets and Extensions Through High Resolution Ground Magnetic Survey

Iron South Mining Corp. (TSX-V: IS, FSE: OAY1 (WKN: A0RK7E), "Iron South" or the "Company") is pleased to announce that it has completed a program of detailed ground magnetometer surveying covering approximately 6,423 ha on priority target areas at Iron South's 94,796 ha Fierro property in Rio Negro Province, Argentina. The program confirmed the magnetic response of known exposures of iron formation at 300 Zone and Gonzales Target and indicated the possible presence of covered extensions which would significantly increase the size of these zones. Furthermore, the survey outlined six new magnetically anomalous areas that are believed to represent covered extensions of the iron formations.


300 Zone

At the 300 Zone, north striking and east dipping outcrops of iron formation are exposed for 300 m before disappearing beneath post mineral cover. Assays from saw cuts across the outcrops returned 79.2% Fe2O3 over 7 m and 80.1% Fe2O3 over 5 m. The new magnetic data indicate the potential for strike extensions both north and south of the exposed iron formation, for an indicated potential strike length of 900 m.


Gonzales Target

Previously, Iron South reported the presence of several sub-cropping iron formation units at Gonzales and the potential for strike extensions under cover for up to 1.5 km. The new magnetic data support this interpretation and indicate the potential for multiple parallel iron formation units.


New Targets

Regionally within the survey area, six other magnetic anomalies were outlined that are believed to represent covered occurrences of iron formation. The targets include Rozales, Loma Hierrada, North, Lomo Roto, Lomo Arranza, and Monchlo (see map at http://www.ironsouthmining.com/i/pdf/2012-08-03_NRM.pdf). These targets will require ground follow-up prospecting, mapping and sampling.

Management is reviewing the data in order to prioritize targets and develop a work program that will include initial drill testing of the main targets and follow-up exploration work over the newly defined zones.

The Fierro Project is located adjacent to the producing Minera Sierra Grande iron mine, owned by Metallurgical Corporation of China Ltd. The Sierra Grande mine occurs in a 3.2 km long band of oolitic iron formation, with widths ranging from 5 to 15 m. The deposit has been drill tested to a depth of 1,100m. It has a historical, non NI 43-101 compliant mineral resource of 199 Mt (million tonnes) at 57.5% iron oxide1 at the South Deposit. The project is road accessible year round, in an area of flat topography at an elevation of approximately 300 m and within 30 km of a deep sea port.


Misc. Business

Iron South also announces that pursuant to the Company's Stock Option Plan, it has granted incentive stock options to its officers and directors to purchase up to an aggregate of 375,000 common shares in the capital stock of Iron South Mining Corp., exercisable for a period of five years, at a price of $0.18 per share. These options are subject to a four-month hold period.


Iron South has decided to drop the Roy Claims in the Walker Lane District of west central Nevada.

Gerald G. Carlson, Ph.D., P.Eng., who is a Qualified Person for the purposes of National Instrument 43-101, reviewed and approved the technical information in this press release. During the due diligence sampling, no internal standards were sent to the laboratory. Acme Labs Chile, an internationally recognized laboratory assayed all samples reported using XRF iron ores analysis 4X30.

1 Metallurgical Corporation of China Ltd. Global Offering Prospectus, September 11, 2009


About Iron South Mining Corp.

Iron South is a Vancouver-based iron exploration company led by an industry-renowned management team with technical expertise and market experience. Iron South has an option to earn 100% interest in the Fierro high-grade iron project, located in Rio Negro, Argentina. The project is immediately adjacent to the producing Minera Sierra Grand iron mine, owned by Metallurgical Corporation of China Ltd. Management is continuing to evaluate acquisitions to build its property portfolio with a focus on iron projects with established value and significant upside potential. Iron South is a member of the Grosso Group, a management company specializing in resource exploration since 1993.


ON BEHALF OF THE BOARD

"Gerald Carlson"
Dr. Gerald Carlson, President & CEO



For further information please contact:

Iron South Mining Corp.
Corporate Communications
Tel: 1-604-687-1828
Toll-Free: 1-800-901-0058
Email: info@ironsouthmining.com



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

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Readers are encouraged to refer to the Company's public disclosure documents for a more detailed discussion of factors that may impact expected future results. The Company undertakes no obligation to publicly update or revise any forward-looking statements. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.