Exploration Update For The High Grade Cracker Creek Project

VANCOUVER - Lode Metals Corp. has confirmed high grade mineralization at the Cracker Creek Project, near Baker City, Oregon. Geological and structural mapping, together with rock and soil geochemical sampling are ongoing to update mapping conducted in the early 1980's by the Oregon Department of Geology and Minerals (DOGAMI) and mapping and sampling by AMAX. Logging roads constructed after the early mapping have exposed several unmapped quartz veins, an important indicator of mineralization in the Cracker Creek system. The Lode Metals geology team have identified four target types at the Cracker Creek project, including: subparallel, cross-cutting, on-strike, and down-dip extensions. Initial samples have been submitted for geochemical analysis to a conventional lab. Additionally, Lode Metals is utilizing x-ray fluorescence spectrometer ("pXRF") geochemistry to augment the conventional assays, while conducting the rock and soil sampling program. This approach enables the Company to act on results from the initial soil grid and initiate grid expansion immediately, rather than wait more than 6 weeks for results from a conventional lab.

Mineralization Encountered: An initial pilot study of one of the North Pole mine dumps using pXRF has identified significant, anomalous gold mineralization (30, 99, 238 & 1,182 ppm Au) along with a strongly anomalous suite of trace metals (+/- Ag, As, Te and Sb). Lab results are pending. These initial pXRF results compare favorably with historic high-grade mineralization reported from the North Pole Mine to average 26.316 opt (818.5 g/t) gold. The Company has identified several, near surface structural intersection targets that splay from the main Cracker Creek structure. These targets are drill ready and permitted by DOGAMI. Current exploration work is advancing targeting on-strike, down-dip, and subparallel targets.

Ken Tullar, CEO, said, "The Cracker Creek exploration model is rapidly taking shape and will receive the benefit of the ongoing geologic and structural mapping, adding to, refining and improving the drill ready targets that we already have in our portfolio. The use of pXRF is an exciting, real-time tool that has already served to discriminate mineralization at our North Pole target. We look forward to the results of more pXRF outcrop interrogation and focusing our soil grid extensions as data becomes available."

The mineralized Cracker Creek structure was mined selectively over 3.5 km along strike and to a depth of 1 km down dip. Historic production for the mines that Lode Metals controls, Columbia, E & E and North Pole focused on the main Cracker Creek vein - see Figure 1 for historic mine locations. Reportedly secondary splays from the main Cracker Creek vein were recognized but never mined. Historic records indicate +400,000 ounces of gold was produced from the combined three mine mills (Columbia, E & E, and North Pole). The North Pole records indicate that the average mill grade was 0.482 opt (15.0 g/t) gold that included some direct ship to smelter ore that averaged 26.316 opt (818.5 g/t) gold, and combined, the overall grade was 0.630 opt (19.6 g/t) gold.

The Cracker Creek project historic resource of +400,000 ounces of gold has an average grade of 0.316 opt (9.8 g/t) gold. Lode Metals believes targeting structural splays and intersections will encounter higher grades in drilling. Previous miners and explorationists noted that the higher-grade mineralization had a rake of 18 degrees to the southwest and an even steeper rake to the southeast. Therefore, it is critical to drill-oriented core to unravel these very important, geological, and structurally controlled questions. Lode Metals has State of Oregon issued drill permits to begin drilling in hand.