Mr. Alain Lambert reports

PRISMO METALS REPORTS 4,811 G/T SILVER AND CONFIRMS DEEP PORPHYRY COPPER POTENTIAL BENEATH HISTORIC SILVER KING MINE, NEAR RESOLUTION COPPER IN ARIZONA

Prismo Metals Inc. has provided the results of the phase I drill program at its Silver King project, located in the Superior (Pioneer) mining district near the town of Superior, Ariz., which consisted of eight holes for a total of 1,272 metres.

Highlights of the phase I drill program include multiple bonanza-grade silver intercepts, highlighted by hole SK-26-08, which returned 2.3 metres (7.4 feet) grading 1,452 grams per tonne silver, 1.6 g/t gold and 1.9 per cent copper, including 0.4 m at 4,811 g/t Ag, 4.6 g/t Au, 5 per cent Cu and 3 per cent lead. Several additional high-grade to bonanza-grade silver intervals (500 to greater than 1,000 g/t Ag) were intersected across the program, including 2.7 m (9.0 feet) at 557 g/t Ag in SK-26-06 and 1.2 m (four feet) at 517 g/t Ag in SK-26-01.

Alain Lambert, chief executive officer of Prismo, stated: "The two objectives of our first phase of drilling were squarely met, namely: (1) we confirmed that the upper portion of the pipe-like mineralized body is largely unmined and retains additional exploration potential; and (2) hole SK-26-07 showed a transition to copper mineralization at depth similar to the nearby Silver Queen mine that later became the Magma mine."

Dr. Craig Gibson, chief exploration officer of the company, stated: "The drilling in this initial program was relatively widely spaced considering the footprint of the pipe-like mineralized body. Maps of historical underground workings were used for drill-hole planning. Holes were drilled at varying orientations to better determine the boundaries of the mineralization. The historic maps appear to be reasonably accurate." Dr. Gibson continued: "Several holes cut relatively wide intervals of greater than 10 metres with multiounce silver values. Higher gold values were reported from hole SK-08, the only shallow hole that was drilled westerly, providing a target for additional drilling in the western portion of the mineralized body."

Dr. Linus Keating, special adviser, commented: "I'm impressed that Silver King's potential seems to improve as we collect and integrate each new data element, building towards a near-surface bonanza vein target perhaps rooted in a hidden porphyry.

"Hole SK-26-07 was planned as a deep test of the Silver King mineralized body and to test for a hypothesized transition to copper mineralization at depth similar to the nearby Silver Queen mine that later became the Magma mine. This hole was drilled to a depth of 1,600 feet or about 488 metres and intersected a distinct intrusive phase at about 1,200 feet (366 metres) with potassic alteration and abundant pyrite disseminated and in veinlets.

"Chalcopyrite is also locally present. Average copper assays increased dramatically downhole by about 70 times, averaging almost 0.05 per cent for sampled material in the bottom 239 feet (73 metres) and locally reaching 0.11 per cent Cu, compared to a background of 0.0013 per cent for sampled material in the overlying 600 feet (183 metres). Concomitant declines of lead, zinc, antimony and mercury values coupled with rising strontium and sodium, suggest a classic geochemical vector toward a possible porphyry source."

Highlights of the drill program:

• Seven holes for 784 m tested the upper portion of the Silver King deposit;
• One hole for 488 m hole tested the downdip extension of the deposit and the deep higher-temperature, porphyry-copper-style mineralization;
• Confirmed that the upper portion of the pipe-like mineralized body is largely unmined; assays point to the possibility of additional exploration potential;
• High-grade mineralization remains unmined as was suspected based on reports from the 114-foot and 250-foot (35-metre and 76-metre) levels when the mine was briefly opened in 1999 to 2000.
• Silver mineralization is underlain by higher-temperature mineralization that is hypothesized to be related to a porphyry copper system.

Eight holes were completed for a total of 4,173 feet, or 1,272 metres. All holes, except hole 3, which was drilled outside of the deposit area, intersected quartz and barite veins and breccia fill with variable quantities of sulphide minerals. Historic workings were intersected in several holes within the mineralized areas. Several holes also intersected apparent backfilled stopes with broken rock and some wood beams below the 250-foot (76-metre) level. In some cases, sampling is not continuous along the drill hole and intervals of samples are separated by unsampled core. Some additional sampling may be completed.

Porphyry potential

Hole SK-26-07 was drilled from a site to the north of the west-dipping pipe-like body at a steep angle to the southwest to test the portion of the body below the 800-to-900-foot (244-to-274-metre) level, the lowest known level of historic mining. The hole intersected silver mineralization at several points above the target zone, indicating that high-grade mineralization is locally present away from the main mineralized body. This hole also appeared to hit some stopes with mineralization in backfill at the 600-to-700-foot (183-to-213-metre) level. The lower portion of the hole intersected a distinct intrusive with higher-temperature alteration and abundant pyrite with local chalcopyrite and rare pyrrhotite.

The Silver King mine occurs within an embayment or erosional window that exposes multiple intrusive phases. Abundant historic workings scattered throughout the embayment further support an interpretation that Silver King may represent a telescoped system: possible high-temperature porphyry-style alteration at depth overprinted by later, shallower epithermal silver/base metal veins. The data suggest that a potential copper-rich hypogene core my lie at depth below or lateral to the Silver King pipe-like body at the Silver King mine. The presence of potassic alteration at relatively shallow depths is unusual for the district and also suggests the Silver King mineralized pipe may be a late-stage part of a larger hydrothermal system.

Next steps

Following the successful phase I drill program and the positive reconnaissance mapping and observations to date, Prismo is advancing the following immediate next steps:

1. Complete the remaining reconnaissance geologic mapping and sampling across the Bilk shaft area, Crown zone, Black Diamond skarn and eastern portions of the embayment to further define pyrite halos and vectoring targets;
2. Analyze the results from the 23 rock samples collected during the May reconnaissance program, along with additional samples from historic shafts and dumps, with results to be announced shortly;
3. In collaboration with Prof. Jamie Wilkinson, implement a four-stage propylitic mineral chemistry program: (1) strategic site selection of approximately 20 optimal samples; (2) high-precision LA-ICP-MS analysis of chlorite and epidote; (3) quantitative vectoring using proximitor ratios and 3-D modelling; and (4) delivery of prioritized drill targets for phase 2;
4. Integrate all new mapping, assay, mineral chemistry and geophysical data into the 3-D geological model to finalize targets for a phase 2 diamond drilling program designed to test the porphyry copper core beneath the historic silver mineralization;
5. Announce the specific targets and depth for phase 2 drilling.

These steps will directly build on the potassic alteration and copper vector identified in SK-26-07 and the surface indicators to derisk and prioritize deeper drilling.

Qualified person

Assays were completed by SGS at its labs in Tempe, Ariz., and Vancouver. Assays consist of 30-gram fire assay with an AA finish for gold and a multielement package analyzed by ICP-ES and MS with a multiacid digestion. Mercury was analyzed separately by cold-vapour AA. Controls samples consisting of certified reference materials as pulps and coarse blanks were inserted into the sample stream at a rate of approximately one for every 20 core samples.

Dr. Craig Gibson, PhD, CPG., a qualified person as defined by National Instrument 43-01 regulations and chief exploration officer and a director of the company, has reviewed and approved the technical disclosures in this news release.

The historic data presented in this press release was obtained from public sources, should be considered incomplete and is not qualified under NI 43-101, but is believed to be accurate. The company has not verified the historical data presented and they cannot be relied upon, and they are being used solely to aid in exploration plans. References to mineralization at the Magma mine and the Resolution copper deposit are not necessarily indicative to the mineralization on the Silver King property.

About the Silver King

Discovered in 1875, the Silver King mine was Arizona's first and one of its most important historic silver producers, yielding nearly six million ounces of silver at grades of up to 61 ounces per ton (from historical records, non-NI 43-101-compliant). The Silver King mine sits only 3.4 kilometres from the main shaft of the Resolution copper project -- a joint venture between Rio Tinto and BHP and one of the world's largest unmined copper deposits.

About Prismo Metals Inc.

Prismo is a mining exploration company focused on advancing its Silver King, Ripsey and Hot Breccia projects in Arizona and its Palos Verdes silver project in Mexico.

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