$500,000 Private Placement with MineralFields Group to Fund Medallion Gold Exploration

    TSX-V: MDL

    VANCOUVER, Dec. 18 /CNW/ - Medallion (TSX.V: MDL) announces that it is
arranging a non-brokered private placement of the Company's shares with
MineralFields Group (a division of Pathway Asset Management). The private
placement will consist of 1,562,500 flow-through Units at $0.32 per Unit. Each
flow-through Unit will consist of one flow-through share and one transferable
non-flow-through share-purchase warrant with a term of 24 months. Each
warrant, if exercised during the 12 months following the close of the private
placement, will allow the holder to purchase one common share of Medallion at
a price of $0.50 per share and, if exercised during the second 12 months
following the close of the private placement, will allow the holder to
purchase one common share of Medallion at a price of $0.75 per share. The
gross proceeds of the private placement will be $500,000. All shares and
warrants will have a hold period of four months. The private placement is
subject to regulatory approval.
    Medallion will pay a finder's fee of 5%, which may be paid in an
equivalent number of shares, and two-year finder's fee options to purchase
156,250 units at a price of $0.32 per unit. Each option unit will consist of
one non-flow-through share and one non-flow-through warrant. The warrants have
the same terms as the warrants issued to the subscribers. There will be an
additional cash due-diligence review fee of $25,000.
    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 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 LH and the Ocelot gold projects in Nevada. At LH, 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.


    "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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