Medallion Options the Amazing Grace Gold Property



    TSX-V: MDL

    VANCOUVER, Nov. 1 /CNW/ - Medallion (TSX.V: MDL) announces that it has
signed a Letter Agreement to option the Amazing Grace gold-exploration
property, located 15 kilometres southeast of Castlegar, British Columbia. The
property comprises 17 Crown mineral claims covering approximately 4867
hectares (48.67 square kilometres). Forestry roads provide good access from a
nearby paved highway.

    Bulk-Tonnage Open-Pit Target - Medallion believes that the Amazing Grace
surface exposure of gold-bearing veins and altered wall rock holds the
potential for a significant, easily accessible bulk-tonnage open-pit gold
target. Free gold occurs with minor sulfide minerals in multiple vein
sequences, which are spatially related to a regional, north-trending fault
along the west side of the property. Over four kilometres of this favourable
structure occur on the property. Numerous prospect pits expose at least two
parallel sequences of gold-bearing veins that lie along an easily accessible
ridge top and vein dip slope, which is of significant size. One such sequence
ranges up to 75 metres in width with an open-ended strike-length of 150
metres.

    Letter Agreement and Option - The Letter Agreement requires that
Medallion initially pay the vendor $2,500, for which the Company is granted a
60-day due-diligence period. During the due-diligence period, the Company and
the vendor will complete a definitive Option-to-Purchase Agreement, which, at
execution, will require the Company to pay to the vendor $7,500 in cash and
issue to him 50,000 common shares of Medallion at a deemed price of $0.50 per
share. In order to exercise the Option and acquire a 100% interest in the
Property, subject to a 2% Net Smelter Return royalty (NSR), Medallion must pay
to the vendor, over a period of five years, an aggregate of $140,000 and issue
to the vendor an aggregate of 150,000 common shares of Medallion. Of the 2%
NSR royalty in favour of the vendor, 1% can be purchased by Medallion for $1
million. Medallion must also perform $70,000 in work on the property during
the first year of the Option Agreement. The Option Agreement will be subject
to the acceptance of the TSX Venture Exchange.
    Medallion will pay a finder's fee of $5,000 on the date that the TSX
Venture Exchange accepts the Option Agreement and Finder's fee and $5,000 at a
date three months from the first Finder's fee payment. If Medallion maintains
the Option Agreement over a period of three years, it will pay the finder, in
stages, an additional $70,000 and issue to the Finder 80,000 common shares of
Medallion. If Medallion exercises the Option, it will grant to the finder a
0.5% Net Smelter Return royalty, of which one-half (0.25%) can be purchased by
Medallion for $250,000.

    Ocelot Gold Property - Medallion also holds the Ocelot gold property,
which is located 40 kilometres 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.

    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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