Medallion Closes $500,000 Private Placement with MineralFields



    TSX-V: MDL

    VANCOUVER, Jan. 3 /CNW/ - Medallion Resources Ltd (TSX.V: MDL)
("Medallion" or the "Company") announces that it has closed a non-brokered
private placement (the "Private Placement") of 1,562,500 units (the "Units")
at a purchase price of $0.32 per Unit to the MineralFields Group for total
gross proceeds to the Company of $500,000. Each Unit consists of one common
share of the Company, issued on a flow-through basis under the Income Tax Act
(Canada), and one transferable common share purchase warrant (a "Warrant").
Each Warrant entitles the holder to purchase one non-flow-through common share
of the Company at an exercise price of $0.50 per share for a period of one
year from the closing of the Private Placement (the "Closing") and at an
exercise price of $0.75 per share thereafter until two years from the Closing.
    The Company issued 78,125 common shares and 78,125 non-transferable
options (the "Finder's Options") to Limited Market Dealer Inc. ("LMD") as a
finder's fee. Each Finder's Option is exercisable to acquire one unit (a
"Finder's Unit") at an exercise price of $0.32 per Finder's Unit for a period
of two years from the Closing. Each Finder's Unit consists of one
non-flow-through common share of the Company and one non-transferable common
share purchase warrant with the same terms as the Warrants issued to the
subscribers under the Private Placement. A due-diligence fee of $25,000 plus
GST was also paid to LMD.
    All of the common shares, warrants, and options issued to the purchasers
and LMD are subject to a four-month hold period which expires on April 29,
2008.
    The funds will be used to explore the Company's recently acquired Amazing
Grace gold project, which is located 15 kilometres east of Castlegar, BC. The
exploration target at Amazing Grace is an extensive surface exposure of
gold-bearing veins and altered wall rock that holds the potential for a
bulk-tonnage open-pit gold operation.

    MineralFields Group (a division of Pathway Asset Management) is a
Toronto-based mining fund with significant assets under administration.
MineralFields offers its tax-advantage super flow-through limited partnerships
to investors throughout Canada. Information about the MineralFields Group is
available at www.mineralfields.com.

    Medallion Resources Ltd also holds the mineral rights and interests to
the Lodi Hills and the Ocelot gold projects in Nevada. At Lodi Hills, in
northern Nye County, a reconnaissance rock-chip sampling program, in an area
of hydrothermal alteration and old prospect pits, has outlined a zone of
approximately 900 metres by 750 metres with anomalously high geochemical
values of gold and silver. At Ocelot, northwest of Austin, Nevada, exploration
targets potentially deep, high-grade gold mineralization of the epithermal
quartz-adularia gold-exploration model. Medallion's strategy is to create a
portfolio of high-impact gold-exploration projects in North America. The
Company is currently evaluating and negotiating for additional projects in
Nevada and British Columbia; however, it will require additional financing to
carry out its acquisition and exploration plans.

    ON BEHALF OF THE BOARD OF DIRECTORS

    "William H Bird", PhD, PGeo,

    President & CEO

    William H. Bird, PhD, PGeo, serves the Board of Directors of the Company
as an internal, technically Qualified Person. Technical information in this
news release has been reviewed by Dr Bird and prepared in accordance with
Canadian regulatory requirements as set out in National Instrument 43-101.
This news release was prepared by Company management, who take full
responsibility for content. The TSX Venture Exchange has not reviewed and does
not accept responsibility for the adequacy or accuracy of this release.





For further information:

For further information: check the website www.medallionresources.com or
contact William H Bird, (888) 827-6611, e-mail birdwill@aol.com; Wayne
Marsden, (888) 366-4464, e-mail jwmarsden@aol.com

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MEDALLION RESOURCES LTD.

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