TORONTO, ONTARIO--(Marketwire - March 22, 2011) - Mustang Minerals Corp. (News - Market indicators)(FRANKFURT:NJF) ("Mustang") and 19.9% shareholder Western Areas NL (TSX:WSA)(ASX:WSA), are pleased to announce a significant new drill discovery of platinum and palladium ("PGM") mineralization at shallow depth at Mustang's 100% owned Mayville Property. The Mayville Property covers a large part of the northern portion of the Bird River Intrusive Complex in southeastern Manitoba. 

Diamond drill hole MAY11-07 intersected 9.15 meters at an average grade of 9.5 g/t combined platinum and palladium (from 55.5m depth) within a wider zone of 41.16 meters at an average grade of 2.9 g/t PGM. The highest grade interval in MAY11-07 is 1.52 m at 8.9 g/t platinum and 22.6 g/t palladium. This interval also assayed 0.7 g/t rhodium in addition to the platinum and palladium with the 9.1 meter section from 55.5 meters assaying 0.27 g/t rhodium.

Assays from the 41.16 meter mineralized interval in drill hole MAY11-07 are: (intervals are down hole width):

Drill hole MAY11-07 was drilled at an inclination of -65 degrees, below drill hole MAY11-06, which was drilled at an inclination of -45 degrees. Both drill holes were drilled with a northerly azimuth from the same collar position. Numerous intervals of lower grade PGM mineralization were intersected in drill hole MAY11-06, including 9.18 meters at an average grade of 1.4 g/t combined PGM (from 29.6 meters). Both drill holes were effectively collared in PGM mineralization in bedrock from surface after overburden.

The mineralization in drill holes MAY11-06 and MAY11-07 is hosted by a strongly altered (chlorite-talc-serpentine) ultramafic unit containing finely disseminated (1-2%) chalcopyrite+pyrrhotite+pyrite sulphides and locally significant visible chromitite. 

Drill holes MAY11-06 and MAY11-07 targeted a previously untested, anomalous IP-EM-magnetic trend within the Bird River Intrusive Complex. The IP-EM-magnetic anomaly appears to be related to sulphides within a host ultramafic unit with a potential strike length up to 2 km. The area is located 1 km southeast of Mustang's gabbro hosted Mayville M2 copper/nickel sulphide deposit. Mayville has a currently announced open pit mineral resource of 9.3 million tonnes grading 0.61% Cu, 0.23% Ni and 0.174 g/t Pd. The two drill holes are also located 250 meters north of a recently announced copper/nickel drill hole intersection announced by Mustang (NR March 3^rd, 2011). 

DISCUSSION

While the extent of the zone of PGM mineralization is not known at this stage, Mustang is planning a substantial drilling program to test the potential of the new discovery at depth and along strike from the two initial drill holes. As well, Mustang will be conducting a detailed ground magnetics IP survey to better define the anomalies.

Mr. Robin Dunbar, President of Mustang Minerals said: "These intersections represent a new grassroots discovery of platinum-palladium mineralization at the Mayville Property". "This is the first phase of drilling at Mayville since 2005-2006 and it highlights the excellent potential of the Mayville property and Mustangs extensive land position in the Bird River Complex."

DRILL PROGRAM UPDATE

Mustang has so far completed a total of 24 reconnaissance drill holes on the Mayville Property. Results for the first three holes were announced March 3^rd, 2011. These holes intersected a new gabbro hosted copper nickel zone approximately 250 meters south of the new PGM drill discovery. Drill hole MAY11-05 was drilled approximately 200 meters to the west of MAY11-06 and MAY11-07 and hit anomalous PGM mineralization. Its exact location in relation to the historical IP anomaly in the area is uncertain. A map showing the location of recent drill holes is posted at www.mustangminerals.com. Assays for the additional holes in the Mayville recon program will be announced as received. 

The drill rig has now been mobilized to the Zeemel Property which is located approximately 19km to the southeast of the Mayville Property. Historical drilling at the Zeemel Property also intersected disseminated chromite in an ultramafic host. Mustang will test this horizon for nickel-copper-PGM mineralization. Once the Zeemal Property is drilled, the plan is to bring the drill back to the new zone of PGM mineralization and complete several follow up holes before the ice thaw sets in.

QAQC

Drill core from the Mayville Project is logged and split on site at Makwa site with half the core retained and stored. Mustang conducts an ongoing QA/QC program on drill core including inserting blanks, duplicates and standards at regular intervals with all sample submissions to the laboratory.

All drill core samples were sent to Accurassay Laboratories in Thunder Bay, Ontario. Analysis was 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 was employed.

To confirm the reliability of the PGM assays encountered in the new zone of PGM mineralization, samples were sent to Activation Laboratories (Actlabs Thunder Bay location) for recheck assays. The check assay results confirmed the values received from Accurassay including the high grade samples. 

About Mustang Minerals

Mustang Minerals has two open pit deposits located in Southeast Manitoba. 

1. 1. The Makwa Project has a NI 43-101 reserve estimate completed in Feb. 2010 by Micon International Limited outlined 9.855 million tonnes in the Probable category containing 0.541% nickel, 0.113% copper and 0.433 g/t PGM. A feasibility study has been announced by Mustang for the Makwa Project.

2. The 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. (Scott Wilson RPA announced April 15, 2010) The purpose of the current drill program is to highlight potentially new mineralized areas at Mayville.

Western Areas NL, an Australian based nickel producer owns 19.9% of the common shares of Mustang.

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

To find out more about Mustang Minerals Corp. (News - Market indicators)(FRANKFURT:NJF) 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: 157,218,233