Mr. Paul Wood reports

BTU EXPANDS DIXIE EAST PROJECT WITH STRATEGIC BLOCK 3 ACQUISITION ADJACENT TO KINROSS GREAT BEAR PROJECT

BTU Metals Corp. has entered into a definitive agreement to acquire a 100-per-cent interest in the Dixie East Block 3 project, located approximately six kilometres east of the Kinross-owned Great Bear project in the eastern part of the Red Lake district, Ontario. The newly acquired claim package is directly adjacent to the Kinross and BTU Dixie Halo project and further augments the company's strategic land position in one of Canada's most active and prospective gold exploration districts. The new acquisition brings the company's total Dixie East project strike coverage to approximately 17 kilometres.

The Dixie East Block 3 claims strengthen the company's district-scale exploration footprint surrounding the multimillion-ounce Great Bear gold deposit being advanced toward production by Kinross as well as the easterly extent of their recently announced high-grade Strider gold discovery.

Dixie East Block 3 acquisition highlights

• Strategic expansion adjacent to Kinross-optioned ground: The Dixie East Block 3 claims are directly contiguous with the company's Dixie Halo project, currently operated by Kinross under an option and joint venture agreement and further enhances the company's exposure to ongoing exploration success in the broader Great Bear district and increases the company's cumulative Dixie East land package to approximately 17 km of strike length.

• Located along prospective regional structural corridor: The newly acquired claims occur within the interpreted extension of the same east-trending regional structural corridor associated with gold mineralization at the Great Bear project, including the LP fault system.

• Emerging district-scale gold potential: Kinross recently reported high-grade gold drill intercepts west of the new property from the new Strider zone, including 215.4 grams per tonne gold over 2.1 metres, results that further support the importance of this regional-scale gold mineralized structural corridor and that shows the potential of the broader mineralized system to contain high gold values well beyond the current Great Bear known mineralization.

• Cost-effective exposure to discovery potential: This acquisition expands the company's strategic land position proximal to the Great Bear gold discovery through a low-cost transaction structure that increases the company's exposure to exploration success as well as future district-scale opportunities.

• Dixie East properties cover interpreted location of significant regional structures: The company continues to refine the interpreted location of significant regional deep-seated structures known to control gold mineralization throughout the area by assembling and utilizing all available datasets.

• There is no history of gold exploration on the property: Geological interpretation and data review work completed to date has not shown any history of gold exploration on the property which is largely overburden covered. The style of a significant portion of the gold mineralization discovered at the Great Bear project is quite unique and was in fact even overlooked in drill core that had intersected visible gold mineralization within the Great Bear corridor.

The company will commence work on the Block 3 property this summer. The company is financed and will commence geological work immediately upon approval of the property agreement.

"The acquisition of Block 3 represents another important step in BTU's strategy of building a district-scale land position east of the Great Bear project," stated Paul Wood, chief executive officer of BTU. "With approximately 17 kilometres of cumulative strike coverage now controlled across the Dixie East trend, we believe the project offers significant long-term exploration potential within one of the most prolific new gold discovery areas in Canada.

Terms of the transaction

Pursuant to the definitive purchase agreement, the company will acquire 100-per-cent interest in the Block 3 claim group through the issuance of an aggregate total of 800,000 common shares of the company, a cash payment of $16,000 plus a 1.5-per-cent net smelter returns royalty, with the right for BTU to buy back a 0.5-per-cent interest at any time for $500,000, to the arm's-length vendors. This transaction is subject to approval from the TSX Venture Exchange. The shares issued will be subject to normal course trading restrictions.

Qualified person

Bruce Durham, PGeo, vice-president exploration of the company, is a qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral projects, and has reviewed and approved the scientific and technical information in this news release.

About BTU Metals Corp.

BTU Metals is a junior mining exploration company. BTU's primary assets are the Dixie Halo project located in Ontario's Red Lake district (operated by Kinross) immediately adjacent to the Kinross Great Bear project and its gold and critical minerals properties in the active Wawa gold district. The company continues to look to acquire high-quality exploration projects to add to its portfolio for the benefit of its stakeholders. The company has no debt and minimal property obligations.

We seek Safe Harbor.