MetalCORP Completes First Round of Drilling at Gouda Lake Zone on Hemlo East Property, and Releases Final Drill Results

   MetalCorp Limited ("MetalCorp" or the "Company") (TSX VENTURE: MTC) has completed the first phase of drilling at the Gouda Lake Zone on its 100% owned Hemlo East property, which lies 13 km ESE of Barrick's Hemlo Mine. Results from the final 7 holes of the 29 hole program demonstrate that the mineralization represents a significant new precious metals-rich VMS-style zone.

"We are very pleased with the results of the drilling program - it has exceeded all of our expectations. Based on the historical data, we initiated this effort hoping to prove up and perhaps expand slightly, a localized gold deposit of modest grade and tonnage. Instead, we have encountered what appears to be a VMS- style system with good continuity, with a strike length of several hundred meters, and with a downdip length of more than 200 meters. Given the established extent of the related alteration, this find has the potential to be very large" says Chris Dougherty, President of MetalCorp.

"Our information casts a new light on historical data which indicates that the same system was intercepted nearly 1200 meters north of our initial fence of drill holes. That work confirmed gold values in excess of 1 g/t, but did not assay for silver or base metals. This has us very excited indeed, and we are now planning a second phase of drilling, to begin early in the New Year."

The best results from the final group of holes include a 1.5 meter (true width) intercept which returned 11.2 g/t gold, 200 g/t silver, and over 1% combined zinc and lead; this was part of a 6 meter intercept which grades 3.83 g/t gold, 91 g/t silver, and 0.83% combined zinc and lead.

"We have every reason to believe that this system will continue to expand in size. The intent of the second phase of drilling is to track the higher-grade core of the mineralized trend northward with the drill, as well as to test new targets nearby." stated Dougherty.

Amongst the nearby targets is a 9.1 g/t gold intercept from hole HEGZ10-10, which lies approximately 200 m east of the main trend. The mineralization in hole 10, which was part of an 3.48m thick (true width) sulphide-rich interval averaging 4.41 g/t gold and 33.2 g/t silver, may represent a second mineralized trend (see attached map).

Results of the final drill holes are as follows:

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BEST RESULTS FROM EACH DRILL HOLE
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       HOLE          INTERVAL               ASSAYED GRADES
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                                                                        TRUE
                     FROM      TO     AU      AG     CU     PB     ZN  WIDTH
                        m       m    g/t     g/t      %      %      %      m
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HEGZ10-21          105.45  106.85   0.16   47.60   0.00   0.57   1.80   1.40
                    109.1  110.45   0.06   34.20   0.00   0.12   0.50   1.35
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AVERAGE            105.45  110.45   0.06   27.09   0.00   0.19   0.64   5.00
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HEGZ10-22             NO SIGNIFICANT RESULTS, BUT SULFIDE ZONE PRESENT.
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HEGZ10-23           144.5  146.26   0.54   21.60   0.00   0.00   0.00   1.75
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HEGZ10-24           147.5     149   0.51   17.70   0.00   0.00   0.28   1.50
                      149   150.5   1.72   81.00   0.00   0.23   1.38   1.50
                    150.5     152   1.96   65.00   0.08   0.00   0.25   1.50
                      152   153.5  11.15  200.00   0.00   0.24   0.93   1.50
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AVERAGE             147.5   153.5   3.83   90.93   0.02   0.12   0.71   6.00
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HEGZ10-25         ALTERATION PRESENT; MINERALIZATION CUT OUT BY DIABASE DYKE
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HEGZ10-26         ALTERATION PRESENT; MINERALIZATION CUT OUT BY DIABASE DYKE
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HEGZ10-27          162.06   162.7   0.45   31.40   0.00   0.00   0.00   0.64
                    162.7     164   7.62  144.00   0.22   0.11   0.40   1.30
                      164  164.93   0.03    4.70   0.00   0.00   0.00   0.93
                   164.93  165.81   0.23   57.40   0.00   0.42   1.31   0.88
                   165.81  166.88   0.02   10.10   0.00   0.00   0.00   1.07
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AVERAGE            162.06  166.88   2.17   56.64   0.06   0.11   0.35   4.82
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A cross-section through the core of the mineralized trend is attached.

"The Gouda Lake Zone is going to be one of our main focuses going forward, and we are excited about undertaking the 2nd phase of drilling," concluded Dougherty.

MetalCorp's exploration programs are carried out under the supervision of Charles Greig, P. Geo., who is the Qualified Person for the information contained in this press release and who is a Qualified Person within the meaning of National Instrument 43-101.

MetalCorp is a mineral exploration company based in Thunder Bay, Ontario, with gold and base metal projects in the Canadian Shield of Northern Ontario, Canada, one of the most prolific mineral districts in the world. To find out more about MetalCorp visit its website at www.metalcorp.ca.

Except for statements of historical fact contained herein, information in this press release may constitute "forward-looking information" within the meaning of Canadian securities laws. Other than statements of historical fact, all statements that involve various known and unknown risks, uncertainties and other factors are "forward-looking statements". There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this news release are cautioned not to place undue reliance on these "forward-looking statements". Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intention or obligation to update publicly any forward-looking information, whether as a result of new information, future events or otherwise. Historical results mentioned in this press release are not NI 43-101 compliant and should not be relied upon.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/mtcFig1.pdf.

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/mtcFig2.pdf.

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

Contacts: MetalCorp Limited Chris Dougherty, P.Eng. President [phone] [e-mail] www.metalcorp.ca