Mr. Lawrence Dick reports

CONFEDERATION RESUMES DRILLING AT NEWMAN TODD AND REPORTS ASSAYS FROM FIRST HOLE OF 2013 MID-SUMMER DRILL PROGRAM: ON-GOING EXPLORATION ALTERNATIVES DISCUSSED FOR THIS LARGE-SCALE, GOLD-BEARING SYSTEM LOCATED IN THE RED LAKE GOLD CAMP.

Confederation Minerals Ltd. has released assay results from the first hole of its 2013 summer drilling program at its Newman Todd gold project in the Red Lake district, Northern Ontario. Confederation has the right to earn a 70-per-cent interest in the project from Redstar Gold Corp.

Drilling was reinitiated after a hiatus following a successful winter 2012-2013 drilling program to allow for assimilation and interpretation of results to date. Significantly, the winter 2012-2013 drilling program showed that high-grade gold mineralization is present at very shallow levels within the major structural host, called the Newman Todd structure (NTS), a zone of quartz-carbonate alteration and brecciation reaching over 200 metres in width and exceeding two kilometres in strike length within the property boundaries. When combined with a deep hole, which intersected gold mineralization approximately one km below surface, gold has been intersected over a strike length of over 1.8 km, and from surface to approximately one-kilometre depth (refer to previous news releases and the company's website).

Thus, drilling to date by the company has identified an exceptionally large volume of potentially gold-bearing rock within the NTS, with most holes completed to date intersecting significant gold-bearing intersections (refer to hit rate statistics on the company's website).

Drill hole NT-151 was drilled on Section 2000NE at an angle of negative 50 degrees toward the southeast within an area referred to as the Hinge zone, which forms a very small portion of the approximately two-kilometre-long gold-mineralized system.

Drilling highlights of hole NT-151 are tabulated.

                 SIGNIFICANT RESULTS

Hole ID              From (m) To (m) Width (m) Au (g/t)

NT-151               139.0    140.0  1.0        3.19
NT-151 and           239.0    244.0  5.0        5.30
NT-151 including     242.5    244.0  1.5       13.46
NT-151 and           
       including     242.5    243.0  0.5       12.10
NT-151 and including 243.0    243.5  0.5       24.00
NT-151 and           281.0    283.0  2.0        3.75
NT-151 including     281.0    282.0  1.0        4.65
NT-151 and           304.0    305.0  1.0        5.23

Width is calculated as core length and does not imply 
true width of the zone. Weighted average gold 
intervals apply a 0.20-gram-per-tonne lower cut-off. 
Internal dilution within reported intervals does not 
exceed core lengths of three metres unless otherwise 
indicated.

Assays from additional holes will be reported on as they are received from the laboratory and have passed quality control criteria implemented by the company. Incomplete results from drill hole NT-152 have been received and will be released shortly, subsequent to QA/QC (quality assurance/quality control) protocol.

NT-151 is the first of a number of holes placed to follow potential extensions of highly encouraging results returned from nearby holes, which returned near-surface, high-grade gold values. For example, as stated in the company's May 1, 2013, press release, drill hole NT-148 intersected 7.0 metres grading 32.57 grams per tonne gold beginning at just 168 metres below surface. Nearby hole NT-142 intersected 6.0 metres grading 13.19 g/t gold beginning at 41.5 metres below the surface. Mineralized outcrops at surface indicate that the NTS is mineralized to surface, which carries significant implications for future economic considerations.

The total drilling by Confederation at Newman Todd now totals 41,525 metres in 106 holes over approximately 1.8 km of strike length within the highly altered, gold-bearing NTS. A complete list of assay results, descriptions of the geological and structural setting, representative cross-sections, and long sections, which illustrate the emerging morphology of the mineralized zones, as well as the location of all drill holes completed to date, can be observed on Confederation's website.

Going forward: Exploring a large, gold-bearing system

Confederation has been diligently exploring, primarily by drilling, with concurrent geological and geochemical interpretation, this significant gold-hosting structure. Meanwhile, the company is evolving the business plan to maximize project advancement while managing a conservative budget. A summary of where the company is positioned with respect to going-forward options to take an exploration success toward a potential economic reality is as follows:

1. Newman Todd is situated in the Red Lake greenstone belt, an assemblage of approximately four-billion-year-old volcanic rocks and associated intrusions, which also host Goldcorp's world-class Campbell Red Lake and other multimillion ounce gold deposits. Goldcorp's Red Lake deposit, which has been in production for approximately 75 years, typifies the Canadian shield mesothermal-type gold deposits, which have extreme depth extensions (measured in thousands of feet below surface) and are, as a group, amongst the highest-grade gold deposits in the world;
2. Mesothermal gold deposits, although high grade, are extremely complex in a structural geological sense. The adage, "drill for structure, drift for grade," was coined specifically for these deposits;
3. Newman Todd typifies the mesothermal style of gold mineralization in that approximately one km of depth extension has been documented by the drilling to date. What sets Newman Todd apart from the majority of high-grade, mesothermal gold deposits in Canada and other greenstone terrains in the world (South Africa, Tanzania, Australia) is the highly anomalous strike length over which gold mineralization has been intersected by drilling carried out to date (over 1.8 km);
4. The strict structural control on gold mineralization, which can lead to very complex morphologies of ore shoots, is very prevalent at the nearby Red Lake deposit and all other deposits of this class. There, as in most mesothermal deposits, which can host up to and exceeding 20 million ounces of gold, drilling can answer only part of the geological puzzle. Once gold-bearing structures have been identified, an underground program, consisting of drifting along the auriferous structures, is required to produce an enhanced understanding of the controls on gold mineralization, a more accurate representation of gold grade and to provide important information for future resource estimations;
5. It is not feasible to take the entire approximately 2.0 km of strike length of the NTS, with an open depth, to the stage where an all-encompassing resource estimation can be carried out without drilling many more tens of thousands of metres, and expending tens of millions of dollars. Exploring a sufficient volume of structure to determine required grade and tonnage targets to support economic development is more realistic. If these targets can be successfully attained within a small component of the structure, then further development at increased scale would suggest significant additional merit within an already financially derisked project;
6. The company has retained Mining Plus Ltd. to prepare a preliminary economic assessment of a component of the property (refer to the company's press release dated April 8, 2013). Mining Plus is working with Confederation geological staff to interpret the structural controls on mineralization, continuity of gold mineralization and metallurgical recoveries of gold (see the company's press release dated July 8, 2013). Mining Plus is also working to complete the preliminary economic assessment within the context or a realistic exploration budget. The company is also in the process of contracting a knowledgeable structural geologist, with extensive experience in the structural habits of gold concentrations in the large mesothermal deposits of Northern Canada. This information will be used to carry out an analysis of the orientation of drill holes completed to date and to determine the feasibility of reorienting specific holes in areas of known mineralization to better understand the preferred structural orientation of the mineralized zones.

Concurrently, plans are under way for a limited program of surface stripping of the NTS where it is buried under shallow cover. By exposing the mineralization in three dimensions, coupled with detailed geochemical sampling and structural mapping of the stripped mineralization, the objective is to gather important structural information with which to extrapolate along the trend.

Conclusion

The company plans to aggressively advance the exploration of the Newman Todd project through a combination of:

1. Preliminary economic studies of restricted areas of the much larger system to determine if open-cast mining might be a viable option during the early stages of the project;
2. Continue drilling on both shallow and much deeper targets along the trend of the NTS to strengthen the potential of the entire system;
3. Identify a target for shallow, underground exploration, via a ramp from surface, to strengthen the company's understanding of the grade, and overall width and tenor of the mineralization, and to provide samples for minable grade and metallurgical recovery studies;
4. Carry out structural geological mapping studies, perhaps aided by ground and/or airborne geophysical surveys if deemed applicable, to further the company's knowledge of the structural setting of gold mineralization and aid in identifying high-priority drill targets, in turn resulting in a more efficient and cost-effective drilling program going forward;
5. Continue with the company's efforts to prepare environmental baseline studies and progress along its road map for obtaining all necessary permits for open-cast and underground excavations and processing.

Andrea Diakow, PGeo, is the qualified person as defined by National Instrument 43-101 and has reviewed the technical content relating to the disclosed drill results in this news release. Core samples from the program were cut in half using a diamond cutting saw and were sent to Activation Laboratories Ltd. in Red Lake, Ont., an accredited mineral analysis laboratory. All samples were analyzed for gold using standard fire assay -- atomic absorption techniques. Samples returning over 3.0 g/t gold were analyzed utilizing standard fire assay -- gravimetric methods. Certified gold reference standards, blanks and field duplicates were routinely inserted into the sample stream as part of Confederation's quality control/quality assurance program.

We seek Safe Harbor.