Mr. Bryson Goodwin reports

GENERAL METALS AND OPEN GOLD ENTER INTO DEFINITIVE AGREEMENT ON INDEPENDENCE PROJECT

General Metals Corp. and Open Gold Corp. have entered into a definitive agreement for the acquisition by Open Gold of the Independence gold and silver mining project near Battle Mountain, Nev. The Independence project comprises 14 mining claims, covering approximately 240 acres, and 480 acres of private-fee surface land exclusive of mineral rights.

Pursuant to the definitive agreement, as consideration for the acquisition General Metals will receive 64 per cent of the issued and outstanding shares of Open Gold at the time of closing, the calculation of which will include shares issued in connection with a concurrent financing. General Metals has agreed to distribute 90 per cent of the Open Gold shares it receives to the shareholders of General Metals. Pending distribution of the shares to the General Metals shareholders, the shares will be held by a trustee. General Metals' voting rights attached to the Open Gold shares held directly by General Metals will be limited to 14 per cent of the total posttransaction issued and outstanding Open Gold shares, excluding shares held by the trustee, which cannot be voted.

Following completion of the transaction, the existing officers of Open Gold will retain their offices, and the board of directors of Open Gold will comprise two directors from the existing board, two nominees of General Metals, and one nominee to be mutually agreed to. Completion of the transaction is subject to various conditions, including, but not limited to, completion of a financing for gross proceeds of $2.35-million by Open Gold, approval of the transaction by the shareholders of General Metals, TSX Venture Exchange acceptance, and completion of legal, financial and technical due diligence. Proceeds from the financing will be used for the advancement of the property and working capital. In connection with the transaction, Open Gold will pay a finder's fee of $110,000, payable on closing.

The Independence project

The Independence project is located in the heart of the prolific Battle Mountain mining district in northern Nevada. The 240-acre Independence project was once the site of a historic Nevada gold mine. The Independence project is surrounded by a number of large-scale mineral deposits, including the Fortitude, Sunshine, Tomboy, Minnie and Phoenix properties. The now depleted Fortitude deposit lies just 4,000 feet northeast of the Independence project and is considered to be one of the most lucrative gold mines ever operated in Nevada. Newmont's Phoenix mine flanks the Independence project on three sides and contains significant proven and probable reserves.

Since being acquired in 2006 by General Metals, the Independence project has logged and modelled drilling data from 131 different drill holes. Key considerations for the acquisition of the Independence project by Open Gold are as follows:

• 331,600 ounces gold equivalent in the measured and indicated categories;
• 848,600 ounces gold equivalent in the inferred category;
• Potential for establishing extension to Newmont Gold's adjacent Phoenix mine;
• Strategically located adjacent to power, water and infrastructure.

The Independence project features two main zones of gold and silver mineralization: a shallow near-surface epithermal system and a deeper, high-grade underground target. Through its extensive exploration activities, General Metals has defined the near-surface epithermal system over a strike length of more than 3,000 feet and a depth of 400 feet.

The mining claims forming part of the project are subject to separate 1-per-cent and 5-per-cent NSRs, the latter being reduced to a 1.875-per-cent NSR upon payment of $3-million.

The Mitchel property

In September, 2012, Open Gold negotiated the option on the Mitchell property from Foundation Resources Inc. This highly prospective and easily accessible volcanic massive sulphide gave Open Gold the ability to promote and explore in the world-class Red Lake mining district of Ontario. Since acquiring its option on the Mitchell property, Open Gold has completed an assessment report and recently sent surface samples to be assayed at the lab. More information will be available as the assay report is received.

Qualified person and National Instrument 43-101 disclosure

Information respecting resource estimates is based on an independent technical report entitled, "Technical Report of the Independence Gold and Silver Project, Battle Mountain Mining District, Lander County, Nevada, USA," dated June 27, 2011, and prepared for General Metals by James Ashton, PE, and Sam G. Nunnemaker, RPGeo, in accordance with the form requirements of National Instrument 43-101. A copy of the report is available on the General Metals website.

The technical information in this news release has been reviewed and approved by Ike Osmani, MSc, PGeo, a consultant to Open Gold and a qualified person under National Instrument 43-101.

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