Osoyoos Indian Band and Merit Mining Corp. Sign Landmark Impacts and Benefits Agreement

    VANCOUVER, May 12 /CNW/ - Merit Mining announces that it has signed an
Impacts and Benefits Agreement ("IBA") with the Osoyoos Indian Band ("OIB")
with respect to Merit exploring, developing and operating its Greenwood Gold
Project in south central British Columbia. The Council of the OIB has support
of the Okanagan Nation Alliance, the political organization of member First
Nations of the Okanagan (Syilx) aboriginal peoples, to enter into this
agreement.
    The IBA benefits to the OIB include potential employment and business
opportunities, education and training assistance, and revenue sharing in
consideration for the OIB's support of Merit's Greenwood Gold Project. The OIB
will be sharing revenues received under the IBA with the Okanagan Nation
Alliance.
    As part of this consideration, Merit has committed to contributing to the
OIB's Nk'Mip Desert Cultural Centre Endowment Fund. The agreement provides the
framework for Merit and the OIB to work together and to support each other in
a spirit of mutual respect, cooperation, openness and friendship in relation
to the Project and the resources. The OIB supports the exploration,
development and operations affiliated with the Project including its current
and future permitting.
    An Environmental Management Committee will be established to provide a
forum for open dialogue between Merit and the OIB with respect to the
environmental impacts and potential impacts on the Project area, to review
these matters on a regular basis and to provide the OIB the opportunity to
make recommendations to Merit respecting environmental matters concerning the
Project.
    "We are pleased to be entering into this landmark agreement with Merit
Mining Corp.," said Osoyoos Indian Band Chief Clarence Louie. "From the
beginning we have seen this as a good business opportunity, as well as
recognizing and protecting our Aboriginal rights. It will create more job
opportunities and revenues for the OIB to invest in community development,
health, training and education."
    Fred Sveinson, President & CEO of Merit states, "The signing of this
agreement with the OIB culminates a year of consultation and negotiations. It
has been a pleasure working with Chief Clarence Louie and his negotiating team
and meeting with OIB members, as well as other Chiefs and members of the
Okanagan Nation Alliance. We are particularly pleased that the Osoyoos Indian
Band has shown confidence in Merit management and the Greenwood Gold Project.
We look forward to a long and mutually beneficial relationship with the OIB
and the Okanagan Nation Alliance, while working on the Greenwood Gold Project
and other future projects".
    The Company is currently processing a 10,000 tonne underground bulk
sample from its Lexington-Grenoble Mine at its newly constructed Greenwood
gravity-flotation mill and, as previously announced on May 9, 2008, has
received its mine and mill operating permits to operate at a production rate
of 72,000 tonnes per annum (~200 tonnes per day) for the life of the mine. The
first shipment of gravity gold concentrate was made three weeks ago to an
offsite refinery and the first shipment of flotation copper concentrate to an
off shore smelter is targeted for the end of May.

    Merit Mining Corp.
    Signed "Fred Sveinson"
    Fred Sveinson, President & CEO

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.

    The statements made in this News Release may contain certain
forward-looking statements. Actual events or results may differ from the
Company's expectations. Certain risk factors may also affect the actual
results achieved by the Company.

For further information: Fred Sveinson at (604) 694-2344; For Investor
Relations information contact: MarketSmart Communications, (604) 261-4466,
(Toll Free 1-877-261-4466); For further information from the OIB contact: Bill
Eisenhauer, Good Relations Inc., (250) 383-5605 or (250) 744-4748