Mustang Drilling Extends Copper Nickel Mineralization to Depth at Mayville

TORONTO, ONTARIO -- (Marketwire) -- 07/17/12 -- Mustang Minerals Corp. (TSX VENTURE: MUM)(FRANKFURT: NJF) ("Mustang" or the "Company") today announced further drill results from the Mayville Property M2 Zone in southeast Manitoba, approximately 2 hours northeast of Winnipeg. Results confirm that the mineralization continues to depth along the west part of the M2 Zone. The Company is extremely encouraged by the significant zones of near surface mineralization indicated by the widely spaced holes.

Drill holes MAY12-58, MAY12-56 and MAY 12-49 were drilled at 200 meter centers over a strike length of 400 meters on the west part of the Mayville Deposit All three holes had mineralized intercepts below previous drilling on the respective sections. The results of the 2012 drilling are shown along with the 2006 drilling on the respective section. Mineralization is proximal to the volcanic gabbro contact with a number of the holes encountering massive sulfides with locally significantly higher grades. The mineralization remains open at depth.

The MAY12 series holes drilled recently are tabulated below with the MAY06 series holes (drilled in 2006) drilled on the respective section.

Hole            From           Interval   Copper  Nickel     Ag     Au+Pt+Pd
                 (m)  To (m)        (m)      (%)     (%)  (g/t)        (g/t)
     Section 27W
MAY12-49      197.00  200.50       3.50     1.09    0.28    4.3         0.79
and           206.50  209.50       3.00     0.27    0.14    2.5         0.18
and           237.00  341.00      82.00     0.40    0.15    1.9         0.27
including     261.13  301.50      40.37     0.56    0.22    1.6         0.37

MAY06-58      159.15  161.81       2.66     1.34    0.53     NA         0.41
and           179.24  179.85       0.61     0.42    0.86     NA         0.53
and           191.23  195.73       4.50     0.35    0.20     NA         0.13
and           207.93  287.20      79.27     0.41    0.18     NA         0.19

     Section 29W
MAY12-56      240.68  362.00     121.32     0.38    0.16    0.9         0.23
including     241.46  245.00       3.54     0.75    0.52    1.4         0.40
including     253.70  256.00       2.35     0.89    0.19    1.7         0.30
including     260.00  264.00       4.00     0.61    0.23    1.2         0.50
including     275.00  277.00       2.00     0.46    0.19    0.8         0.50
including     287.88  290.33       2.45     0.62    0.30    0.8         0.40
including     312.50  314.70       2.20     0.71    0.24    1.1         0.40
including     327.70  334.10       6.40     0.43    0.28    1.1         0.30
including     339.00  357.46      18.46     0.52    0.20    1.4         0.30

MAY06-74      207.01  229.27      22.26     0.44    0.23     NA         0.22
including     212.80  222.48       9.68     0.53    0.32     NA         0.31

     Section 31W
MAY12-58      211.00  217.57       6.57     0.93    0.20    3.9         0.25
including     212.04  215.60       3.56     1.40    0.15    5.5         0.30

MAY05-34      120.73  140.09      19.36     0.67    0.19     NA         0.21

Widths shown are core width and not true widths. NA-not available

Discussion

The Company is pleased to see the continuation of the M2 Zone to greater depth on the west side of the M2 Deposit. A number of the drill holes have been surveyed with downhole EM and specific areas are targeted for follow up drilling. Notably, the wide zone of mineralization in MAY12-56 appears to have further potential to depth. Follow up drilling in the area of MAY12-57 is also planned. MAY12-57 was drilled on the eastern part of the deposit and intersected 25.0 meters which assayed 1.05% copper and 0.45% nickel.

The follow up drill program is planned to start in August 2012. Thereafter the Company anticipates completing a resource update for the Mayville Property targeting a significant resource upgrade. Follow up work will be funded from existing cash and working capital of the Company.

The Mayville Intrusion hosts the M2 Zone resource which is a magmatic nickel copper system. Sulphide mineralization consists of chalcopyrite, pyrrhotite, pentlandite and pyrite and a variety of textures ranging from disseminated to locally massive. The M2 Deposit has a current strike length of over one kilometer and is open at depth. The current near surface resource is 9.2 million tonnes at 0.61% copper and 0.23% nickel.

Drill hole cross sections of the recently completed drill holes have been posted on the Company website at www.mustangminerals.com.

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 sample submissions to the laboratory.

About Mustang Minerals Corp

Mustang Minerals has two near surface deposits located in southeast Manitoba as well as a several exploration properties in Ontario;

1.  The Makwa Ni-Cu Deposit has a NI 43-101 outlined reserve estimate
    completed in February 2010 by Micon International Limited of 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.
2.  The Company's Mayville Project is located approximately 35 km by road
    from Makwa and has a NI 43-101 Indicated Resource of 9.227 million
    tonnes containing 0.61% copper, 0.23% nickel and 0.174 g/t palladium
    Mustang is completing additional exploration at Mayville and on its
    surrounding mineral claims.

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

Western Areas NL, (ASX: WSA)(TSX: WSA) an Australian based nickel producer owns 19% of the common shares of Mustang.

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: 198,160,658

Contacts:

Mustang Minerals Corp.

David Black

Investor Relations

416-955-4773
info@mustangminerals.com
www.mustangminerals.com