Trelawney options La Bufa project in Mexico

2007-11-26 08:35 ET - News Release

Mr. Wayne O'Connor reports

TRELAWNEY OPTIONS "LA BUFA" COPPER/GOLD/SILVER PROJECT IN MEXICO

Trelawney Resources Inc. has signed a letter agreement with West Timmins Mining Inc. whereby Trelawney will have the right to earn a 50-per-cent interest in WTM's La Bufa copper-gold-silver project located in Chihuahua, Mexico.

Under the terms of the letter agreement, Trelawney may earn a 50-per-cent interest in the La Bufa project by financing $1-million (U.S.) in exploration over five years, making cash payments totalling $310,000 (Canadian) over four years and issuing 1.5 million common shares to West Timmins over three years. The letter agreement is subject to regulatory approval. Cash and share payments of $110,000 (Canadian) and 500,000 common shares, and exploration financing of $200,000 (U.S.) are firm commitments on behalf of Trelawney during the first 12 months of the agreement. West Timmins Mining will be the operator of the La Bufa project.

"We are pleased to have optioned a quality project in a prolific mining district in Mexico plus we gain the experience and knowledge of an established Mexican explorer," said Wayne O'Connor, president and chief executive officer of Trelawney Resources. "This agreement gives Trelawney a good foothold in Mexico while we will continue to advance our gold project in Wawa, Ont."

The La Bufa project hosts the former-producing Carmen mine which extracted approximately one million tonnes of copper and gold ore at average grades of 2.50 per cent copper, 2.80 grams per tonne silver and 2.90 g/t gold between 1947 and 1958. The Carmen vein system was mined over widths of two to six metres and for 800 metres along strike. Recent sampling by WTM has confirmed the presence of anomalous gold mineralization (0.40 to 18.70 g/t gold) in the hangingwall to the Carmen structure which was not systematically exploited by the previous operators.

West Timmins also recently announced the discovery of a high-grade copper-silver vein system on the property west of the existing workings which returned assay results of 7.20 per cent copper and 1,470 g/t silver from a grab sample collected during a regional stream sediment sampling program.

The La Bufa project is located in the Three States mineral district of southwestern Chihuahua state, Mexico. The La Bufa project is road accessible and is located 75 kilometres east of the company's Montana de Oro project, 25 kilometres east of Goldcorp's El Sauzal gold mine and 15 kilometres east of Mag Silver's/Penole's Batopilas multimillion-ounce silver project.

A committee of independent directors of Trelawney reviewed and approved the La Bufa transaction as being in the best interests of the company. Mr. O'Connor, chairman of West Timmins, and president and CEO of Trelawney, abstained from voting concerning the La Bufa agreement.

Geochemical results reported herein were previously reported and the reader is referred to Stockwatch Oct. 17, 2007, for details on quality control and assurance procedures. Darin Wagner, MSc, PGeo, the president and CEO of West Timmins Mining, has acted as non-independent qualified person for this news release. The qualified person has visited the project site and independently verified some, but not all, of the analytical results reported.

Trelawney is also the largest landholder in the entire Wawa/Hemlo mining camp with approximately 21,000 acres now under its control. The company's neighbour, gold producer Wesdome Gold Mines Ltd., holds approximately 16,000 acres. Trelawney has assembled the largest land package in this area since the Hemlo staking rush in the 1980s. The consolidated property contains over 48 known gold occurrences including the Dorset gold deposit where Trelawney recently announced an indicated and inferred gold resource.

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