Medallion Updates Red Wine Heavy REE Project, Proceeds with Option to Acquire 100% of the Property

Vancouver, BC — Medallion Resources Ltd (TSX-V: MDL; OTCQX: MLLOF — “Medallion” or the “Company”) a rare-earth-element (REE) explorer, announces that all data from its 2010 exploration program on the Red Wine Heavy rare-earth-element (“REE”) Project has now been analyzed.

“We have received some positive indications of rare-earth mineralization on the Red Wine property and subsequently updated our property agreement to continue exploration,” said Dr Bill Bird, Chairman and CEO. “We will continue to explore our two Canadian REE properties; however, since our initial programs indicate that both properties require significant additional work, we are also working to secure a new project that can get us to production rapidly and take advantage of the extraordinary REE marketplace.”

The 2010 Red Wine program consisted of an airborne magnetic and radiometric survey, a reconnaissance mapping and sampling program, a follow-up sampling program and REE mineralogical studies. The exploration work was carried out on seven claim-group licenses in four separate claim blocks (4650 hectares in total — the “Property”), which lie approximately 90 kilometres northeast of Churchill Falls, Labrador.

The initial REE target on the Property was a large exposed body of previously mapped Red Wine peralkaline intrusive rock, which is known to contain the REE-bearing mineral, eudialyte. While significant eudialyte was identified during the field work and all assayed samples showed elevated levels of REEs, the overall average assays for the eudialyte-bearing rock were lower than expected. Laboratory examination determined a Red Wine eudialyte total REE content of approximately 2.5%, which is low for eudialyte and explains the lower-than-expected REE assays reported for the samples of peralkaline rock.

“The Red Wine peralkaline intrusive complex is clearly a significant occurrence of REEs, which deserves continued, detailed exploration,” continued Dr Bird. “Our work has encountered at least three types of REE mineralization and, historically, other types have been reported, as well. Our first target, a large surface area of eudialyte-bearing peralkaline rocks, initially showed potential for a large, low-cost heavy REE project; however, the low REE content of the eudialyte means that we now will seek to locate other areas within the Red Wine intrusion that contain levels of eudialyte that are higher than the 15% to 20% that we encountered last year. Historically, much higher eudialyte levels have been reported from the Red Wine intrusion and our planned exploration program for 2011 will include further work in search of these higher levels of eudialyte in less accessible areas of the Property. We also are very interested in evaluating other types of REE mineralization, which, in the samples where we encountered them, were much higher grade than the eudialyte-bearing rocks.”

In a related development, Medallion also announced that it has elected to proceed with the option to acquire a 100% interest in the Property and has negotiated with the vendor (the “Vendor”), subject to TSX-V Exchange (“the Exchange”) approval, an amended option agreement (the “Agreement”). Key terms of the Agreement include:

• Upon approval of the Agreement by the Exchange, Medallion will issue the Vendor 50,000 common shares;

• over a period of five years, beginning from the date the TSX Venture Exchange provides final approval of the transaction, Medallion pays the Vendor an aggregate of $475,000 cash and issue to the Vendor an additional 1,750,000 Medallion common shares;

• Medallion agrees to complete, during the five-year period, $550,000 in exploration work on the Property;

• Medallion may purchase half of the Vendor’s 3% royalty at any time by making a cash payment of $1.5 million to the Vendor.

About Medallion Resources

Medallion is rethinking rare earths. Headed by Dr Bill Bird and supported by a first-class technical team, Medallion is well positioned to identify and acquire the world’s most promising rare-earth opportunities. Medallion’s strategy targets large deposits amenable to straightforward low-cost mining and metallurgical processes that lead to near-term rare-earth production and long-term supply. Rare earths are used in critical components for virtually all computing and mobile electronic products, as well as wind turbines, electric and hybrid vehicles and strategic defense systems. More about Medallion (TSXV: MDL; OTCQX: MLLOF) can be found at medallionresources.com.

For further information visit www.medallionresources.com or contact:

Donald Lay
President
Tel (604) 681-9558 or Email don.lay@medallionresources.com

[HR]

Medallion Management takes full responsibility for content, prepared this news release. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe medallion’s future exploration and financing plans, objectives or goals, including words to the effect that Medallion or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in these statements. Such risks include expectations that may be raised by discussing potential acquisitions or exploration plans. Also, in order to proceed with Medallion’s exploration plans, additional funding is necessary and, depending on market conditions, this funding may not be forthcoming on a schedule or on terms that facilitate Medallion’s plans.