TORONTO, ONTARIO--(Marketwire - May 17, 2012) - Mustang Minerals Corp, (TSX VENTURE:MUM)(FRANKFURT:NJF) ("Mustang" or the "Company") today announced an update on its drilling activities at the Mayville Property in southeast Manitoba approximately 2 hours northeast of Winnipeg. Recent drilling below the Mayville M2 Zone has produced further encouraging indications with 8 of 9 drill holes encountering a zone of disseminated sulphide mineralization similar to that previously intersected at the M2 Zone. A total of 8,052 meters in 31 holes were completed in the drill program designed to test extensions to the M2 Zone, the PGM Zone and other exploration targets at Mayville.

M2 Zone Drill Holes

A total of 9 holes (3876 meters) were drilled in March and April 2012 to test for the down-dip depth extension to the M2 Zone. The holes were drilled at approximately 100-150 meter centers below previous drill holes and were targeted to intersect the potential mineralized zone between 200 meters and 400 meters in vertical depth. A long section showing the location of past and current drill holes has been posted on the Mustang website under the Mayville Property section at http://www.mustangminerals.com/projects/mayville/. The program also included one deep hole drilled to a depth of greater than 800 meters.

The drill holes at M2 were designed partly on recent results from down-hole borehole EM geophysics carried out by contractors Crone Geophysics and Koop Geophysics. The down-hole geophysical surveying was conducted across the 1.1 kilometer M2 Ni-Cu horizon. All recently completed drill holes into the M2 encountered zones of disseminated to localized rare semi-massive sulphides of chalcopyrite and pyrrhotite similar to historical M2 Zone drilling. Assays are pending for the first several holes in the M2. The remainder of the M2 are currently being split and sent to the assay lab. Follow up down-hole geophysical work is now been completed on the M2 Zone Mayville to probe the recently drilled holes to assist in targeting further follow up drilling.

PGM Zone Drill Holes

Drilling was also completed at the PGM Zone. A total of 10 drill holes (2788 meters) were drilled to follow up on PGM mineralization intersected in 2011. (Mustang NR 03/03/2011 and 05/05/2011). The recent drillholes tested the prospective horizon of an ultramafic package of rocks over a 740 meter strike length. Assays have been received from 4 holes to date with the best results returning 1.0 g/t Au+Pt+Pd over 16.0 meters (including 2.37 g/t Au+Pt+Pd over 2.0 meters) from MAY-12-31 and 1.05 g/t Au+Pd+Pt over 13.0 meters (including 3.14 g/t Au+Pd+Pt over 2.0 meters) in MAY-12-32. Both holes were from the same collar location and tested the PGM potential to the east of the original Mayville PGM Zone and were previously released (Mustang NR 03/03/2012). Assays from the rest of the holes will be split and sent for assaying as soon as possible following the completion of the splitting of the M2 holes.

Other Targeted Areas

A total of 12 holes were drilled into other geophysical anomalies in the project area. No significant zones of mineralization were observed and further work is required into these prospective areas. The areas that were drill tested include the Hititrite occurrence and the historical Copper Contact Zone.

QAQC Program

All core samples are sent to Accurassay Laboratories in Thunder Bay, Ontario. Analysis is completed for nickel, copper, cobalt and silver using an Aqua Regia digestion followed by AAS/ICP finish. For gold, platinum and palladium, fire assay of 30g aliquots followed by combination fire assay and AAS finish is employed. Drill core is logged and split on the Makwa site by Mustang personnel with half the core retained and stored. Mustang implements a QA/QC program on drill core including inserting blanks, duplicates and commercial standards at regular intervals with all sample submissions to the laboratory.

About Mustang Minerals Corp

Mustang Minerals has two near surface deposits located in southeast Manitoba as well as a several exploration properties in Ontario;

1. The Makwa Ni-Cu Deposit has a NI 43-101 outlined reserve estimate completed in February 2010 by Micon International Limited of 9.86 million tonnes in the Probable Ore Reserve category containing 0.541% nickel, 0.113% copper 0.433 g/t PGM at the Makwa Project.
2. The Company's Mayville Project is located approximately 35 km by road from Makwa and has a NI 43-101 Indicated Resource of 9.227 million tonnes containing 0.61% copper, 0.23% nickel and 0.174 g/t palladium. Mustang is completing additional exploration at Mayville and on its surrounding mineral claims.

Carey Galeschuk P.Geo. is the National Instrument 43-101 Qualified Person for Mustang Minerals Corp..

Western Areas NL, (ASX:WSA)(TSX:WSA) an Australian based nickel producer owns 19% of the common shares of Mustang.

To find out more about Mustang Minerals Corp. (TSX VENTURE:MUM) visit our website at www.mustangminerals.com.

We seek safe harbour.

This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (together, "forward-looking statements"). Such forward-looking statements may include the Company's plans for its mineral projects in Manitoba, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risk, uncertainty of production and capital costs estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of nickel and other metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Management Discussion and Analysis for the most recent financial period and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.

Shares Outstanding: 198,160,658