Report Received For Underground Mining Project In Minnesota

TORONTO - Duluth Metals Limited has received the draft pre-feasibility study set out in the independent National Instrument 43-101 Technical Report (PFS Technical Report) prepared by a multi-company team led by AMEC E&C Services Inc. (AMEC) for Duluth Metals for the proposed underground copper, nickel and platinum group elements mining project located in northeastern Minnesota (the TMM Project). The full PFS Technical Report will be filed within 45 days on www.SEDAR.com.

"The PFS Technical Report validates the TMM Project to be one of the most compelling greenfield copper-nickel development projects in the world," stated Kelly Osborne, President and CEO of Duluth Metals.  "The foundations of the TMM Project are its tremendous mineral resource, technically sound engineering and test work, strong operating margins, and location in a state that supports the mining industry and has ready-built mining infrastructure and an experienced workforce to support a large-scale mining operation. We look forward to the next Phase of the TMM Project and continued efforts to improve the value of the TMM Project."

The PFS Technical Report is based on a 30-year underground mine plan with an average production rate of 50,000 short tons of ore per day, generating marketable copper and nickel concentrates. The mine plan is focused on the development of the Maturi and Maturi SW mineral deposits, located approximately nine miles southeast of the city of Ely, MN , and 11 miles northeast of the city of Babbitt , MN.  Some properties of the TMM Project are owned jointly by TMM and the Birch Lake Joint Venture. The TMM Project has the potential to create approximately 850 full time jobs when the mine is in operation and generate some 12 million labor hours during an approximate three-year construction period.

The PFS Technical Report indicates a C1 cash cost/lb. of copper (Cu) ("life of mine" or LOM) of $0.76 (net of all byproduct credits) and a C1 cash cost/lb. of copper-equivalent (CuEq.) LOM of $1.64 .  Duluth believes that the PFS Technical Report confirms that the TMM Project has: a competitive cost position whereby the TMM Project would be in the first quartile of C1 cash costs per pound of Cu produced over the mine's 30 years of operation when benchmarked against other producing copper mines throughout the world, strong operating margins sustained over time, and capital efficiencies resulting from outstanding local infrastructure and workforce.

"The PFS Technical Report confirms that the TMM Project offers an extraordinary long-term economic opportunity for the state of Minnesota, local communities, and TMM Project stakeholders," stated Christopher Dundas , Executive Chairman of Duluth Metals.  "The TMM Project enjoys many advantages including excellent infrastructure, a mining friendly jurisdiction and upsides for future expansion and potential down-stream processing."