MMG Metalline Mining Company Common Stock

COEUR D'ALENE, Idaho, Dec. 15 /PRNewswire-FirstCall/ -- Metalline Mining Company (AMEX:MMG) announced that during its 2006 water development program, Metalline Mining Company has drilled 15 exploration holes in the vicinity of Sierra Mojada, Coahuila, Mexico. Two borings are incomplete for technical reasons. The water production rate of the remaining holes was estimated by air lift testing, and six of them yielded tests in excess of 50 gallons per minute from depths of 200 meters or less. One hole was selected for completion using an open hole completion technique recommended by our consulting hydrologist, David Hawkins of Barranca Group LLC. As explained in the attached memo, the completed well tested at a rate of 152 gallons per minute during a 24 hour pump test. The water produced from the well is brackish with a temperature of 30 C, as is water from many nearby exploration holes. Our consulting engineers state that the water quality is adequate for process use, but the quality is too low to meet standards for human drinking water. From the perspective of sustainable use of resources, such water is ideal for use in mining applications. Our water exploration holes in another area, to the north of the town of La Esmeralda, show excellent potential to provide high quality drinking water. We are working with local authorities to find ways to cooperatively develop a reliable supply of water to meet present and future needs of our work force and other inhabitants of the towns of Sierra Mojada and La Esmeralda. Mining and ore processing requires large volumes of water. Our engineers have identified location of an adequate water supply as a critical milestone in the feasibility study process. The current results suggest that a suitable water supply can be identified. Memo from David B. Hawkins, consulting hydrogeologist, to Metalline Mining Company management, dated 10 December 2006. "Over the past 4 days we have installed a test pump in water exploration well R3A and we have conducted a pump test. A 30 HP submersible test pump was installed to a depth of 945 feet. After pump installation a step test was conducted to determine a sustainable rate for the constant rate test. The step test determined that there was very limited drawdown pumping at the maximum rate that the pump could deliver. Therefore the constant rate test was conducted at approximately the maximum rate that the pump could deliver. During the constant rate test, the well was pumped at a rate of 152 gallons per minute (gpm) for a period of 24 hours. The static water level was approximately 495 ft. below land surface. The maximum drawdown produced during the pump test was less than 7 feet, and this was produced during the first three minutes of pumping, after which the pumping water level did not change for the duration of the test. After the pump was turned off, the water level recovered virtually instantaneously. The exploration drilling and test pumping of R3A indicate the following: (1) Fractured carbonate rocks are a viable water exploration target in the El Rey Basin. (2) The well was constructed with an "open-hole" completion, i.e. the well was not cased below the conductor casing at 84 ft, i.e. the well was uncased from 84 ft. to 1140 ft. There were no caving problems during the casing installation and test pumping, therefore this offers the possibility of being a very economical well construction method. (3) The pump test indicates that the well would be capable of sustained pumping at a rate of 150 gpm. Based on the very limited drawdown experienced, it is likely that the well can produce significantly more than 150 gpm. Therefore, it is recommended that the well be tested with a larger capacity pump in order to determine its maximum sustainable capacity." Forward-Looking Statements This news release contains forward-looking statements regarding future events and Metalline's future results that are subject to the safe harbors created under the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act"). These statements are based on current expectations, estimates, forecasts, and projections about the industry in which Metalline operates and the beliefs and assumptions of Metalline's management. Words such as "expects," "anticipates," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," "continues," "may," variations of such words, and similar expressions, are intended to identify such forward-looking statements. In addition, any statements that refer to projections of Metalline's future financial performance, Metalline's anticipated growth and potentials in its business and other characterizations of future events or circumstances are forward-looking statements. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict, including those identified elsewhere herein and Metalline's Annual Report on Form 10-KSB for the fiscal year ended October 31, 2005 under "Risk Factors." Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. Metalline undertakes no obligation to revise or update any forward-looking statements for any reason. DATASOURCE: Metalline Mining Company CONTACT: Merlin Bingham, +1-208-665-2002 Web site: http://www.metalin.com/

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