Two Private Placements Closed to Fund Romaine Iron-Titanium Project



    TSX.V:MDL

    VANCOUVER, Jan. 6 /CNW/ - Medallion Resources Ltd. ("Medallion" or the
"Company" - TSX.V: MDL) announces the closure of two non-brokered Flow-Through
private placements of the Company's shares. The gross proceeds raised totals
$397,632.00, which will be used to fund exploration at the Romaine
Iron-Titanium Project.
    The first placement involved the issue of 1,266,999 flow-through common
shares at $0.15 per share to raise gross proceeds of $190,049. Two of the
Company's directors participated. Medallion paid cash finders' fees of
$8,572.45 to finders of arm's-length placement participants.
    The second placement, with MineralFields Group (a division of Pathway
Asset Management), involved the issue of 1,383,886 flow-through common shares
at $0.15 per share, which raised gross proceeds of $207,583. Medallion paid a
cash finder's fee of $16,606.64.
    The shares issued in the placements have a four-month hold period, which
will expire 1 May 2009.

    David Fry Resigns From Board

    The Company announces that David Fry, a member of the Board of Directors
since 2006, has resigned from the Board to pursue other interests. Medallion
thanks Mr Fry for his active service over the past two years.

    About the Romaine Iron-Titanium Project

    Medallion is presently completing definitive documentation and seeking
regulatory approval to obtain an option to acquire a 100% interest in the
Romaine iron-titanium property in Quebec.
    Historical drilling and metallurgical work support the Romaine property's
historical resource estimate of 234 million tonnes grading 10.8% titanium
oxide (TiO2) and 17.9% iron.(*) The body of iron-titanium mineralization crops
out along a known length of three kilometres and a width that ranges from 200
metres to 460 metres. It is open along strike and down dip. Information from
the 1960's and 1970's suggests that there is a significant potential for
increasing both the size and grade of the body.(*)
    The Romaine Iron-Titanium Project minerals are hematite (Fe(2)O(3)) and
ilmenite (FeTiO(3)), which are the minerals mined at the nearby QIT mine
(three kilometres to the west). Rio Tinto's QIT mine, with a 50-million-tonne
reserve, is a leading producer of high-quality titanium and steel and is
presently the largest iron-titanium mine of its type in the world.

    About MineralFields Group

    MineralFields Group (a division of Pathway Asset Management), based in
Toronto and Vancouver, is a mining fund with significant assets under
administration that offers its tax-advantaged super flow-through limited
partnerships to investors throughout Canada as well as hard-dollar resource
limited partnerships to investors throughout the world. Pathway Asset
Management also specializes in the manufacturing and distribution of
structured products and mutual funds (including the Pathway Multi Series Funds
Inc. corporate-class mutual fund series). Information about MineralFields
Group is available at www.mineralfields.com. First Canadian Securities (R) is
active in leading resource financings (both flow-through and hard dollar PIPE
financings) on competitive, effective and service-friendly terms, and offers
investment banking, mergers and acquisitions, and mining industry consulting,
services to resource companies. MineralFields and Pathway have financed
several hundred mining and oil and gas exploration companies to date through
First Canadian Securities (R).

    ON BEHALF OF THE BOARD OF DIRECTORS

    "William H Bird", PhD, PGeo, President & CEO

    Company Management, takes full responsibility for content, prepared this
news release. The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. Some of the
statements contained in this release are forward-looking statements, such as
estimates and statements that describe the Company's future exploration and
financing plans, objectives or goals, including words to the effect that the
Company or management expects a stated condition or result to occur. Since
forward-looking statements address future events and conditions, by their very
nature, they involve inherent risks and uncertainties. Actual results in each
case could differ materially from those currently anticipated in these
statements. Such risks include expectations that may be raised by discussing
potential mine types and by comparing the Company's projects to other
projects. Also, in order to proceed with the Company's exploration plans,
additional funding is necessary and, depending on market conditions, this
funding may not be forthcoming on a schedule or on terms that facilitate the
Company's plans.

    (*) The historical resource estimate and the Romaine River property reports
supporting the estimate were prepared before the introduction of National
Instrument 43-101-- Standards of Disclosure for Mineral Projects ("NI
43-101"). They may not be relied upon until they are confirmed using methods
and standards that comply with those required by NI 43-101. The potential for
the Romaine River property mineralization to replicate the historical resource
estimate, or for new data to expand its tonnage and grade, is conceptual and
is based on historical reports, which cite approximate lengths, widths,
depths, grades, metallurgical test work and projections of the historical
resource. Investors are cautioned that a qualified person has not yet
completed sufficient exploration, test work or examination of past work to
define a resource that is currently compliant with NI 43 -101. The Company
further cautions that there is a risk that exploration and test work will not
result in the delineation of such a currently compliant resource. Neither the
Company nor its personnel treat the historical resource estimate or the
historical data as defining a current mineral resource, as defined under NI
43-101, nor do they rely upon the estimate or the data for evaluation
purposes; however, these data are considered relevant and will be used to
guide exploration as the Company develops new data to support a current
mineral-resource estimates in accordance with the requirements of NI 43-101.

    %SEDAR: 00006083E




For further information:

For further information: www.medallionresources.com; Corporate
Communications: David Fry (888) 827-6611, dfry@medallionresources.com

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MEDALLION RESOURCES LTD.

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