TORONTO, ONTARIO -- (Marketwire) -- 08/16/10 -- Treasury Metals Inc. ("Treasury" or the "Company") (TSX: TML) today released its report for the second quarter ending June 30, 2010. The Company is also pleased to provide an update from its exploration program on the Goliath Gold Project, located approximately 20 km east of the City of Dryden in northwestern Ontario.

Goliath Gold Project Update (April to July 2010)

Independent consultants A.C.A. Howe International Limited ("Howe") submitted an initial National Instrument 43-101 ("NI 43-101") compliant Preliminary Economic Assessment ("PEA") on the Goliath Gold Project which validates the Project and the Company's exploration efforts to date. This initial analysis of the Thunder Lake gold deposit demonstrates its economic potential and provides Treasury with the parameters necessary to develop the Project and increase its economic profile. Importantly, at this time, there is sufficient confidence in 390,000 ounces for use in the economic analysis which only represents about 35% of the total resource ounces.

Highlights include:

--  Howe concludes that the Project has potential economic viability under
    base case assumptions.

--  Surface and underground mining operations with stand-alone
    gravity/flotation milling complex.

--  Approximately 390,000 ounces Au recovered over 81/2 years at a
    production rate of 1,500 tonnes per day; average annual recovery of
    48,000 ounces Au.

--  At US$850 per oz (base case gold spot price): after-tax NPV@ 5% of $23
    million and IRR of 15%.

--  At US$1,200 per oz (current gold spot price): after-tax NPV@ 5% of $91
    million and IRR of 43%.

--  Estimated initial capital expenditure of $38 million; Life of Mine
    capital expenditure of $59 million; and, payback period of 4 years at
    US$850 per ounce gold, or 21/2 years at US$1,200 per ounce gold.


Howe concludes that Treasury should continue to advance the Project toward
Pre-Feasibility, recommending:

--  Infill drilling to upgrade Inferred Resources to Indicated Resources,
    aimed at increasing total gold ounces to be considered in future
    economic/production models.

--  Collect material for further metallurgical test work to include gravity,
    flotation and cyanidation mineral processing, optimised to confirm
    recoveries used in the economic model.

--  Collect geotechnical information to be used for surface and underground
    mine planning.

--  Optimization of economic model by investigating purchase of a used mill
    instead of construction of new mill.

--  Initiation of Environmental Baseline studies as soon as possible.

The PEA also includes an updated Mineral Resource Estimate ("Resource Estimate") for the Thunder Lake gold deposit, based on diamond drilling completed as at December 2009. Surface resources were defined using a block cut-off grade of 0.5 g/t Au for surface resources (less than 100 metres deep) and 2.0 g/t Au for underground resources (greater than 100 metres deep). Non-diluted surface plus underground Indicated Resources total 3.4 million tonnes with an average grade of 2.5 g/t Au, for 270,000 ounces. Non-diluted surface plus underground Inferred Resources total 10.6 million tonnes with an average grade of 2.7 g/t Au, for 930,000 ounces.

In addition the Company completed a 27 hole, 10,344 metre diamond drilling programme (February to June), aimed at testing and delineating high-grade structures within the Main Zone of the current mineral resource; confirming geophysical targets generated by surface and borehole induced-polarization surveys; in-fill drilling to begin upgrading resources; and, further testing of the Western Extension. Significant high-grade gold intersections included:

--  TL10-87: 13.85 g/t Au over 1.00 m (from 508.0 to 509.0 m)

--  TL10-88: 20.03 g/t Au over 1.00 m (from 477.0 to 478.0 m)

--  TL10-90: 8.36 g/t Au over 1.00 m (from 501.5 to 502.5 m)

--  TL10-92: 16.12 g/t Au over 0.50 m (from 733.05 to 733.55 m)

--  TL10-98: 7.47 g/t Au over 10.5 m (from 274.5 to 285.0 m)

--  TL10-100: 5.74 g/t Au over 15.00 m (from 300.00 to 315.00 m)

--  TL10-102: 3.38 g/t Au over 6.00 m (from 352.50 to 358.50 m)

--  TL10-108: 43.44 g/t Au over 1.00 m (from 185.00 to 185.00 m)

"With the results of our PEA in hand we are now planning the next phase of exploration and development on the Goliath Gold Project," commented Scott Jobin-Bevans, President & CEO. "The PEA justifies moving our project towards pre-feasibility and potential production. We will continue to review the various mining scenarios presented in the economic model and look for ways to further improve the project economics while executing our exploration plan outlined in the PEA. In addition, I would like to take this opportunity to welcome Mr. Dennis Gibson our new CFO to the Treasury team and to thank Jim Fairbairn for his contribution to the Company during his tenure as CFO."

The Company continues to advance the Goliath Gold Project through expansion of the current resources (Thunder Lake gold deposit) and property-wide exploration programs planned for the remainder of 2010. In addition, Treasury will continue to actively seek new acquisition opportunities in the Kenora Gold District that are accretive to its existing gold property portfolio.

Financings

During the quarter received financing of $583,124 through the exercise of 2,038,750 warrants and $35,250 through the exercise of options since the beginning of the year.

Operations

Treasury Metals has assembled the Goldcliff Project by acquiring, through a property option agreement, four unpatented mining claims (12 units) and through staking, 22 unpatented mining claims (248 units), totalling 4,160 hectares. The Goldcliff Project, located about 40 kilometres south-southeast of Dryden, Ontario, represents a new discovery in the Kenora Gold District and contains several gold showings. Initial due diligence sampling by the Company identified visible gold in a grab sample that assayed 106.43 g/t Au.

Dr. Jobin-Bevans continued, "Goldcliff is a very interesting new target and our initial due diligence on the Property suggests it has excellent potential. Adding it to our property portfolio was an opportunistic move on our part and represents our first steps in exploring for additional gold ounces in the Kenora Gold District, an area that we believe is vastly underexplored and holds enormous upside potential for new gold discoveries. While our focus remains on Goliath we are continuing to examine other opportunities in this highly prospective region."

In addition, Treasury is pleased to announce that the Net Smelter Royalty ("NSR") payment it receives from the Cerro Colorado Mine that is owned and operated by Goldgroup Mining Inc. ("Goldgroup") has increased from 2.5% to 3.0%. The NSR agreement between Treasury and Goldgroup contemplates a sliding scale NSR that increases to 3.0% once a total of 100,000 ounces have been produced. Goldgroup recently achieved that milestone.

During the quarter the Company also appointed Dennis Gibson to the role of Chief Financial Officer and re-elected its Board of Directors consisting of Marc Henderson, Scott Jobin-Bevans, William Fisher, Blaise Yerly, Peter Walker and Douglas Bache at the Annual General Meeting on June 29th, 2010.

Six Months Ended June 30, 2010

During the six-month period ended June 30, 2010 Treasury invested $1,660,083 on mineral properties as compared to $203,179 during the same period in 2009. The increase is a result of the Company meeting its flow-through obligations.

For the six months ended June 30, 2010, Treasury incurred a net loss of $56,985 compared to a loss of $525,862 for the same period in 2009.

For the three month period ending June 30, 2010, the Company's net NSR revenue was $197,299 as compared with $104,595 in 2009. The increase is mainly a result of higher production and higher gold prices and increased NSR.

As at June 30, 2010, the Company had a negative working capital position of $315,598. The Company has marketable investment holdings not included in working capital having a market value at June 30, 2010 of $1,548,794 as compared to $1,243,395 at June 30, 2009.

Outlook 2010

Looking into the third quarter the Company will primarily focus on exploration and development of the Goliath Gold Project by executing the recommendations made by A.C.A. Howe in their PEA on the Goliath Gold Project. In addition, the Company will look to expand the current resources by drilling outside the defined resource area to the west, northeast and to depths below 800 metres. Treasury will also aggressively target, review and, if desirable, acquire and develop advanced gold assets in northwestern Ontario in order to augment and strengthen its current mineral property portfolio.

About Treasury Metals

Treasury Metals Inc. is a Canadian mining company that is focussed on expanding the Company's gold resources and developing its 100% owned flagship Goliath Gold Project located in the Kenora Gold District of northwestern Ontario. The NI 43-101 compliant gold resource contains non-diluted surface plus underground Indicated Resources of 3.4 million tonnes grading @ 2.5 g/t Au, for 270,000 ounces and non-diluted surface plus underground Inferred Resources of 10.6 million tonnes grading @ 2.7 g/t Au, for 930,000 ounces. Treasury Metals obtains significant royalty revenue from an NSR on Goldgroup Mining Inc.'s Cerro Colorado Mine located in Mexico.

For additional information on Treasury Metals and its projects, including updated technical information as it pertains to this news release, please visit the Company's website at www.treasurymetals.com.

Forward-looking Statements

Securities regulators encourage companies to disclose forward-looking information to help investors understand a company's future prospects. This press release contains statements about our future financial condition, results of operations and business. These are "forward-looking" because we have used what we know and expect today to make a statement about the future. Forward-looking statements usually include words such as may, expect, anticipate, believe or other similar words. We believe the expectations reflected in these forward-looking statements are reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our business or events that happen after the date of this press release. You should not place undue reliance on forward-looking statements. As a general policy, we do not update forward-looking statements except as required by securities laws and regulations.