PERTH, WESTERN AUSTRALIA--(Marketwire - Feb. 3, 2012) - Magma Metals Limited (TSX:MMW)(ASX:MMW) ("Magma" or the "Company") notes that Panoramic Resources Limited ("Panoramic") (ASX:PAN) has today announced its intention to make a conditional offer to acquire all of the Magma shares it does not currently own (the "Offer").

The proposed Offer consideration is 2 Panoramic shares for every 17 Magma shares held, which according to Panoramic's announcement implies a value of AUD 14.94 cents per Magma share based on closing share prices on the ASX on February 2, 2012 (Panoramic: A$1.27 & Magma: $0.08).

The timing of the Offer, which is unsolicited, appears to Magma Directors to be highly opportunistic and the Directors advise shareholders to take no action in response to the Offer at this time, subject to their own financial advice and circumstances. Once Panoramic's Bidder's Statement has been received and analysed, the Directors will provide further advice to shareholders.