Mustang Moves Toward Production With Purchase of Mining Equipment

NEW YORK, Feb. 3, 2012 /PRNewswire/ -- Mustang Alliances Inc (OTCBB: MSTG) ("Mustang") announced today the purchase of mine processing equipment for its Potosi property in Southern Honduras.  The equipment consists of a ball mill, a crusher, 2 Falcon concentrators, and some earth moving equipment.  Mustang will deploy this equipment at the Potosi Property as part of a pilot test program to determine the best gold extraction and production techniques. 

Mustang expects the pilot test program to allow the Company to determine concentration ratios, expected recovery per ton, mining and milling costs.  This will permit Mustang to establish the scope and equipment requirements for commercialization and move towards establishing commercial production.  This is an internal company test and is not subject to independent oversight.  Following successful completion of the test program, Mustang expects to do future testing following independent "Chain of Custody" protocols.

During 2011, Mustang completed considerable testing on the Potosi Property, including taking over 100 surface and near-surface samples and compiling historical data which includes over 1800m of drilling to depths ranging up to 125m.  Based on those test results, the Company believes that certain defined mineralized areas of the property could support a small-scale test mining production of approximately 1000 oz of gold per month.

Mustang will continue to focus on its goal of short-term production.  In addition to initiation of a test-mining program, the Company will continue to explore its concessions to define proven quantities of commercially extractable gold and silver, with the goal of completing a 43-101 resource report in the future.

Robert Faber, President stated, "We believe this pilot test program will provide us with critical information for the Potosi Property, as well as for other land holdings in Southern Honduras.  With test-mining production imminent, we feel Mustang is poised to move to the next phase in its development."

Forward-Looking Statements
Certain statements in this announcement including statements such as "believes," "anticipates," "expects" and all similar statements regarding future expectations, objectives, intentions and plans for mineral exploration, development and production may be regarded as "forward-looking statements" within the meaning of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made. Management's current view and plans, however, are subject to numerous known and unknown risks, uncertainties and other factors that may cause the actual results, performance, timing or achievements of Mustang Alliances to be materially different from any results, performance, timing or achievements expressed or implied by such forward-looking statements. The various uncertainties, variables, and other risks include those discussed in detail in the Company's SEC filings, including the Annual Report on Form 10-KSB, for the year ended December 31, 2010 and its Quarterly Report on Form 10-Q for the period ended September 30, 2011. Mustang Alliances Inc. undertakes no duty to update or revise any forward-looking statements. Actual results may vary materially.

For further information, please visit our website at www.mustang-gold.com or contact Robert Faber at +1(646) 504-4131 or email [email protected]

SOURCE Mustang Alliances Inc