Malaga announces its tungsten ore reserves and resources increased by 72% and
280% respectively at Pasto Bueno tungsten mine: Peru

    
    Malaga Inc. (malaga)
    Symbol: MLG
    Toronto Stock Exchange (TSX)

    Highlights: Proven and probable reserves increase by 72% to 169,427
                tonnes of ore
                M&I resource increase by 280 % to 398,845 tonnes of ore
    

MONTREAL, March 5 /CNW Telbec/ - Malaga Inc. (TSX: MLG) is pleased to release resource estimates from an updated technical report on the Pasto Bueno tungsten mine's reserves and resources, located in the Ancash Province of Northern Peru. The National Instrument 43-101 compliant report was prepared by Vector Engineering Inc.

The data includes detailed sampling of veins exposed in drifts and chimneys and long section of eight veins that are currently being exploited or explored. There are currently 78 known WO3-mineralized veins found on Malaga's Pasto Bueno property.

The resource summary includes 169,427 metric tonnes of proven and probable reserves with a WO3 average grade of 0.70%, 398,845 metric tonnes of measured and indicated resources with a WO3 average grade of 0.76% and 1,820,641 metric tonnes of inferred resources with a WO3 grade of 0.70%. The complete report and its appendixes will be filed on SEDAR (www.sedar.com) over the next 45 days and will also be available on the Company's website www.malaga.ca. In the NI 43-101 report in February of 2009, Malaga reported 98,488 metric tonnes of proven and probable reserves, 142,490 metric tonnes of measured and indicated resources, 1,204,000 metric tonnes of inferred resources

"We are certainly pleased about the excellent results of this report. As the Americas' only publicly-traded tungsten producer, we are keeping up with the demand by not only replacing what we mined in 2009 but also securing additional years of production at the Pasto Bueno mine. Given the current recovery in the tungsten price and indications that China's demand is rising, Malaga is poised to benefit from strong market demand for Malaga's high quality tungsten", said Jean Martineau, President and CEO of Malaga.

The summarized table of reserves and resources as of January 4, 2010, as follows:

    
    -------------------------------------------------------------------------
                     NATIONAL INSTRUMENT 43-101 COMPLIANT
                        TECHNICAL REPORT (March 2010)
    -------------------------------------------------------------------------
    CATEGORY                                Metric Tonnes      WO3 Grade (%)
    -------------------------------------------------------------------------
    Proven Reserves                                81,696              0.71
    -------------------------------------------------------------------------
    Probable Reserves                              87,731              0.68
    -------------------------------------------------------------------------
    Total Reserves (Proven + Probable)*         169,427              0.70
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Measured Resources                             64,757              0.91
    -------------------------------------------------------------------------
    Indicated Resources                           334,088              0.73
    -------------------------------------------------------------------------
    Total Resources (Measured +
     Indicated)*                                398,845              0.75
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Inferred Resources                          1,820,641              0.70
    -------------------------------------------------------------------------

    * Measured and Indicated Resources include all the Proven and Probable
        Reserves.
    

Strict QA/QC procedures were followed for all the samples and the quality of sample preparation, security, integrity and chemical analyses was equal to or exceeded current industrial standards and the requirements of NI 43-101.

In 2009, Malaga undertook an important drilling campaign as well as an extensive underground exploration program in order to define its tungsten reserves and resources. More than 3,051 meters of drilling was done; management of Malaga intends to pursue the exploration on all the significant mineralized structures to further define and increase the reserves and the resources.

The resource and reserve estimate was done by Richard Kehmeier. Mr. Kehmeier, M.Sc., C.P.G., Senior Geologist for Vector Engineering, Inc. in Golden, Colorado, is a Qualified Person ("QP") as defined by NI 43-101. Vector and Mr. Kehmeier are not associated in any manner with Minera Malaga Santolalla S.A., Dynacor Exploraciones del Peru S.A. or any of the other subsidiaries. This Press Release has been read and approved by Malaga's qualified person, Mr. Alonso Sanchez,

ABOUT MALAGA INC.

Malaga Inc. is a tungsten mining company that uses modern, efficient and productive mining technology. The Company is committed to growth through increasing its tungsten concentrate production, by continuing the exploration of the Pasto Bueno property as well as through strategic acquisitions. It also seeks diverse Peruvian growth opportunities such as developing the hydroelectric potential of the Pasto Bueno property, through Hidropesac, in which the Company holds 44% as well as through its holding in Dynacor Gold Mines Inc. in which the Company owns 13.5%.

FORWARD-LOOKING INFORMATION

Certain statements in the foregoing may constitute forward-looking statements which involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Malaga or industry resultsto be materially different from any future result, performance or achievement expressed or implied by such forward-looking statements. These statements reflect management's current expectations regarding future events and operating performance as of the date of this news release.

SOURCE MALAGA INC.

For further information: For further information: Jean Martineau, President & CEO, Malaga Inc., (514) 288-3224; Dale Nejmeldeen, Investor Relations, Malaga Inc., (778) 574-2806, nejmeldeen@malaga.ca; Nicole Blanchard, Corporate Strategy and Investor Relations, Sun International Communications, (450) 973-6600

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