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GNLM News General Metals Gives Presentation At Equities Magazine Transatlantic Conference At The AMEX In NY City

The Transatlantic Conference featured a select group of emerging growth Companies presenting to a sophisticated audience of brokers, fund managers, investment professionals and active retail investors. The Keynote speaker was Neil Wolkoff, CEO of the AMEX, and the moderator was Victor Webb of Marston Webb International of New York. The Conference moves from NY's AMEX to the London Stock Exchange and then to Milan, Italy to the Borsa Italiana Exchange. GNLM only participated in the AMEX event this year.

Founded in 1951, Equities Magazine continues to be the foremost source for business and financial news of promising public companies. A Corporate Profile on GNLM is featured in the current edition which is now available at Borders, Barnes & Noble and B. Dalton Books, and in thousands of newsstands nationwide. www.equitiesmagazine.com.

The Independence claims are completely surrounded by Newmont Mining's Phoenix Mine www.newmont.com and is a 240-acre island with legal access. The Independence mine was predominately a silver mine that produced intermittently from 1938 through 1987 in seven separate operations. Production came from 8 miles of underground workings developed along a 1,500 ft strike length of the Independence fault zone. Reported historic production by the various operators totaled 750,200 ounces silver and 11,029 ounces gold.

From 1983 - 1997 there were several exploration campaigns conducted by Noranda, Teck Exploration, Northern Dynasty and Great Basin Minerals which resulted in about 80 reverse circulation and core drill holes being drilled and reported. The 1997 Carrington Report, the 1997 Akright Report, the 2006 Carew Report and the 2005 Frost and Larsen findings have been cited below. These reports are available for review in their entirety at the Company's office in Reno, Nevada. An Executive Summary and the power point presentation from the AMEX is available on the Company's website www.generalmetalscorporation.com.

According to Akright in his 1997 report, "the gold resource potential of the Independence property occurs in two distinct categories: a shallow open pit mineable target, suitable for heap leach and a deep underground target. Insufficient drilling has been done to calculate a proven or probable reserve for the shallow target. However, mineralized material containing 235,000 ounces of gold and 2,500,000 ounces of silver have been estimated by Carrington (1997)." Our 2006 exploration drilling campaign is designed to bring the shallow target into a resource category according to SEC Industry Guide 7.

It is believed that the Independence surface and shallow mineralization is directly connected to the deep mineralization. Using the limited deep drilling by Noranda (25,000'), the deep target in the southern area of the property could contain mineralized material with 1.4 million ounces of gold at an average grade of 0.17 ounces gold per ton, or 818,000 ounces of gold at a grade of 0.27 ounces gold per ton.

According to a review report prepared by Carew, P. Geo (Feb 2006), "a large body of mineralized material is, however, clearly indicated by previous drilling, as illustrated by the grade-thickness plot in Figure 2 (see Executive Summary). A program of re-logging some 25,000 feet of Noranda drill core, stored on the property, was completed in August 2005 by Karl Frost (2005), in addition to petrographic (thin section) studies by Dr. L.T. Larsen (2005). Frost noted gold values in all the deep holes, and Larsen identified gold as separate grains, apparently as a late stage event, both indications that gold recovery should be straightforward."

As part of our pre-feasibility study for the shallow target heap leach operation, leach testing is being conducted and leach pad engineering, design and building costs are being put out for bid. Operating permitting has commenced to enable early cash flow.

An initial budget of $600,000 will be expended for geology, geophysics, phase 1 drilling and early permitting, with an additional $900,000 budgeted to complete the drilling, permitting, heap leach and mine development for the shallow mining operation. Additional drilling is scheduled to commence in mid October '06. Targeted recovery: 235,000 oz. of gold and 2.5 million oz. of silver.

Notice Regarding Forward Looking Statements

This news release contains "forward-looking statements", as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of our exploration program at our Independence Mine project and the existence and amounts of any economically recoverable mineralized material or reserves at the Independence Mine.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-KSB for the 2004 fiscal year, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission.