Medallion Announces Private Placement


    VANCOUVER, Oct. 1 /CNW/ - Medallion Resources Ltd ("Medallion" or the
"Company" - TSX.V: MDL) announces that the Company is arranging a non-brokered
private placement to raise gross proceeds to the Company of up to $250,000 by
the issuance of an aggregate of up to 1,250,000 units at a purchase price of
$0.20 per unit (each "Unit"). Each Unit will consist of one common share of
the Company and one half of one non-transferable common share purchase
warrant. Each whole warrant will entitle the holder to purchase one common
share at a purchase price of $0.25 per share at any time during the period of
two years following the closing of the private placement. All securities
issued pursuant to the private placement will be subject to a four month hold
period from the date of the closing of the private placement. The private
placement is subject to regulatory approval.
    Certain insiders of the Company are participating in the private
placement and plan to sell existing securities in the Company in order to fund
the purchase of certain Units offered under the private placement. The Company
has agreed to pay a finder's fee of up to 7 per cent of the amount raised from
arm's length investors in cash or securities of the Company.
    The net proceeds of the private placement will be used to fund the work
program on the Romaine River Iron-Titanium Project (see September 2, 2008 news
release) and for general corporate purposes.

    Romaine River Iron-Titanium Project

    The Romaine River project consists of 59 claims, located three kilometres
east of QIT's Lac Allard iron-titanium mine in Duplessis County, Quebec. The
Property is potentially one of the world's largest iron-titanium occurrences
with a historical 234-million-tonne estimated resource.(*) Historical drilling
and metallurgical work support the 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
2.3 kilometres and a width that ranges from 180 metres to 485 metres. It is
open along strike and down dip. The Romaine River Project minerals are
hematite (Fe(2)O(3)) and ilmenite (FeTiO(3)) which also are the minerals mined
at the QIT Lac Allard mine. The QIT Lac Allard mine, owned by Rio Tinto and
presently the largest of its type in the world, is a leading producer of
high-quality titanium and steel products.

    Other Company Business

    The Company also wishes to announce the results of its annual
shareholders meeting held on September 30, 2008. At the meeting, the
shareholders of the Company approved all matters placed before them by
management, including the election of the directors, the appointment of the
auditor, the ratification of the Company's stock option plan and the increase
in the Company's authorized share capital.


    "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.
Company Management, which 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 and
acquisition 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:; Corporate
Communications: David Fry, (888) 827-6611, e-mail:

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