NEWS

WIRES

OTHER

Silvermet Launches Drilling and Metallurgical Test Program on its Tufanbeyli Zinc Oxide Project in Turkey

Silvermet Inc., (TSX VENTURE: SYI) announces that it has commenced a US$1.0 Million drill and metallurgical test program with the primary objective of defining 20 years of economic reserves for an initial Waelz Kiln installation designed to produce 65,000 tonnes of zinc metal annually in zinc oxide grading 62% zinc.

Preliminary work completed in 2005 included an extensive geochemical site sampling program totaling some 6,000 samples along with early tests conducted by SGS Lakefield Research on selected samples from an existing production pit on the property to determine the potential for using sinkfloat upgrading on lower grade ores thereby maximizing extraction from the proposed initial mining area.

Based on the work completed by SNC Lavalin, Montreal, on the installation of the Waelz Kiln plant near Kayseri, installed by SNC Lavalin in 1975/76, SNC Lavalin has concluded that similar technology upgraded to reflect the improvements since 1975 be used by Silvermet on its project. Based on the use of the Waelz Kiln with an annual capacity of 65,000 tonnes of zinc metal in oxide, preliminary calculations indicate a requirement of ten million tonnes of in-situ material grading plus 15% zinc to provide the plant with feed for a minimum of 20 years. Weather permitting this year and the completion of drilling site #1, a second site of interest north-east along the trend zone will be drilled with the same objective of locating ten million tonnes of plus 15% zinc content, should a second kiln prove timely and economic.

The property is located approximately 450 km south-east of Ankara and covers an area, of 29,245 hectares (29.2 sq km). The property is on the south-east part of an extensive zone around Kayseri, which in the past included many small mines going back into antiquity and producing, by primitive vertical tort kilns, both lead and zinc. The Silvermet property has been mined by small pits, underground and by a larger 110,000 tonne pit to a total of 210,000 tonnes, grading plus 20% zinc, over the period 1985 - 1998. The mineralogy appears to have originally been typical Mississippi Valley type mineralization and where exposed near the surface and in the previously mined underground workings located approximately 40 meters below surface, the sulphide minerals were completely converted by oxidation to zinc oxide.

During 2005, geological mapping was completed over a trend distance of 15 kilometers. The mineralized host rocks are Devonian limestones and dolomites. The oxide mineralization over a width of 300 meters and extending to a depth of at least 40 meters has been indicated by the mining work done to date and confirmed by the 2005 geological mapping and soil geochemical surveys. The minimum observed thickness of the oxidized mineralization coupled with its width and 15 km trend length indicates the potential for significant large scale tonnages in the project area. On a preliminary basis, 1.5 km of mineral trend is estimated to be required for the presence of 10 million tonnes of ore.

Recent production information has been obtained with the co-operation and help of the current operators of the Cinkom Kayseri plant, which was restarted to produce zinc oxide in 2005. The Cinkom plant is located 100 km north-west of the project area. The SNC Lavalin engineered and installed plant included two Waelz Kilns at a rated annual capacity of 20,000 tonnes each of zinc in concentrates, followed by acid leaching and electrolysis to produce high quality zinc metal. A small lead plant was also included but was not operated. The plant was restarted in 2005 after the purchase of it by a local entrepreneur and is being operated to produce concentrate only because of the elevated terms from the smelters for the 62% zinc in oxide product.

Turkey has become a modern advanced business oriented country seeking entry into the European Union. The country has modern infrastructure including highways, power grids, water supply, telecommunications, hospitals and an abundance of factories, including many around the city of Kayseri, the closest major centre to the Silvermet and Cinkom mining areas. Kayseri has a population of approximately 1 million people. Port facilities at Toros, on the Mediterranean coast are large and well equipped to handle outgoing material and inbound supplies.

Silvermet Inc., (TSXV: SYI) commenced trading on the Toronto Venture Exchange on July 10, 2006. Silvermet is in joint venture with Anatolia Minerals Development Limited, traded on the Toronto TSX Exchange (ANO). Anatolia acquired the mineral rights to the area and entered into joint venture with Silvermet whereby Silvermet will earn a 70% interest in the project after spending $5.0 million and completing a feasibility study. Anatolia has large technical offices in Turkey and conducts exploration programs for several major companies using their fully qualified staff of Turkish geologists and engineers. Silvermet is manager of the project and Anatolia conducts the field program using their personnel and Turkish contractors as required.

Certain information regarding the Company contained herein may constitute forward-looking information under applicable securities laws. Such statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Important factors that could cause actual results to differ materially from these forward-looking statements may be found in the Company's documents filed from time to time with the Canadian securities authorities. The Company does not assume the obligation to revise or update these forward-looking statements after the date of this document or to revise them to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.