Citadel Gold Mines Inc. and Trelawney Resources Inc. announce signing of option agreement on Sudbury base metal property



    TORONTO, Jan. 31 /CNW/ - CITADEL GOLD MINES INC. (CGM.H: NEX Exchange),
TRELAWNEY RE

SOURCES INC. (TRR-TSXV). Further to Citadel's announcement of November 2, 2006, Citadel Gold Mines Inc. and Trelawney Resources Inc. (formerly Terex Resources Inc.), announced today that they have entered into a formal option agreement whereby Citadel can earn up to a 75% interest in the Massey property located in Salter Township, Ontario, about 100 km west of Sudbury. The property consists of about 2,000 acres covering three former copper-producing mines: the Massey mine, the Hermina number 1 mine, and the Hermina number 3 mine. Citadel will have the right to earn an initial 51% interest in the Massey property by issuing 1,150,000 common shares, by making cash payments to Trelawney totalling $260,000 and by incurring an aggregate of $1,200,000 in exploration and development expenditures on the property over five (5) years. Citadel will have the right to earn a further 24% interest by completing a feasibility study. On completion of Citadel's option, a joint venture will be formed between Citadel and Trelawney on either a 51-49 or 75-25 basis, respectively, to further develop the property. Citadel and Trelawney are excited about the potential for the Massey property and look forward to partnering to maximize this site's base metal potential. The statements used in this press release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's forward-looking statements and expectations.

For further information:

For further information: John Sadowski, President, Citadel Gold Mines
Inc., Telephone: (416) 675-8379, Facsimile: (416) 675-8477; Wayne J. O'Connor,
President, Trelawney Resources Inc., Telephone: (416) 364-6420, Facsimile:
(416) 364-5400

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CITADEL GOLD MINES, INC.

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TRELAWNEY RESOURCES INC.

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