COEUR D'ALENE, Idaho, July 29 /EMWNews/ -- Metalline

Mining Company is pleased to announce that a new resource model has been

completed on the Sierra Mojada, Coahuila, Mexico Oxide Zinc mineralization.

The new model was completed by world-recognized Pincock, Allen, and Holt,

and more than doubles the amount of zinc present in the deposit. The

current model incorporates new drilling results and a complete suite of

silver analyses that were not available when the previous model was

generated.



    The increase in the size and zinc content of the deposit, plus the

addition of a potential by-product credit for silver associated with the

Oxide Zinc mineralization, requires that the Company take a fresh look at

the optimum mine size, mining methods, and other economic and engineering

factors. Open pit mining is possibly effective on a deposit of this size

and geometry. Open pit mining would remove the production rate constraints

that are inherent in the underground mining scenario that is currently

being evaluated. A first pass evaluation of open pit mining of the new

resource model indicates that mining and processing rates might be as much

as 5 times greater than those currently being considered. This would result

in significant economies of scale and may allow market opportunities that

are not available with a smaller underground operation. Preliminary

economic evaluation of open pit mining suggests that it would be much more

profitable.



    Silver Polymetallic ores provided much of the historic production in

the Sierra Mojada area. The company has been actively evaluating these

zones and has issued a number of press releases and other public statements

concerning them. The Silver Polymetallic mineralization lies adjacent to

the Oxide Zinc mineralization on the north side of the east-west Sierra

Mojada Fault. In an open pit scenario, this mineralization would be mined

during stripping to access the Oxide Zinc mineralization. We do not have

enough drill data yet, and in the right places, to create a comprehensive

resource model for this mineralization. Current drilling, with 5 drills, is

primarily directed at infilling and defining the Silver Polymetallic

mineralization in order to bring the data to the quality required for a

resource model.



    The Silver Polymetallic mineralization is predominantly sulfide in

nature and would require a different processing plant to recover the

contained metals. The Company needs to gain a complete understanding of the

size, grade and metallurgical character of this potentially large

silver-rich mineralization in order to understand the impact on the

economics of mining the Oxide Zinc mineralization by open pit. If the

Silver Polymetallic mineralization can be exploited in the course of

developing the Oxide Zinc mineralization, there is potentially an

additional, very positive, economic impact on the overall project.



    Accordingly, the Company is announcing that it is suspending the

underground mine plan and concentrator portions of the feasibility study to

evaluate a much larger scale operation in order to exploit both the silver-

rich mineralization and the now much larger Oxide Zinc, silver

mineralization. Since underground mining may not be conducted, the planned

test mining program is being suspended until the open pit possibility is

determined.



    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, 2007 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.