Medallion Acquires Nevada Gold Exploration Property

Stakes additional mineral claims in area

TSX Venture Symbol: MDL 

VANCOUVER, Oct. 6 /CNW/ - Medallion Resources (TSX-V: MDL) announces that
it has agreed with Carl Pescio and others (the "Vendors"), subject to
approvals by regulatory authorities, to acquire the Ocelot gold exploration
property in Lander County, Nevada. Medallion has also staked 142 new federal
lode mineral claims in the area.
The terms of the agreement with the Vendors call for US$35,000 and
50,000 shares of the company in advance royalties, as well as additional
annual advance royalty payments against a net smelter royalty of 3%. The
parties have agreed to enter into a definitive agreement, expected to be
completed within 30 days, which will replace and reflect the terms of the
current Letter Agreement and will define all operating procedures and
conditions for both parties.
The Ocelot property comprises 13 unpatented federal lode mineral claims
in Lander County, approximately 40 kilometres north of Austin, Nevada. Past
exploration in search of shallow gold mineralization, by several companies
over the last 20 years, has focused on widespread silicification and anomalous
gold values. Medallion's exploration plan calls for seeking deeper, high-grade
mineralization of the epithermal quartz-adularia model, which is characterized
by gold deposits such as Midas, Silver Cloud, and deeper portions of Sleeper
and Grassy Mountain. In addition to the acquisition of the Ocelot claims,
Medallion has staked 142 new federal lode mineral claims, which surround and
add to the key exploration targets of the core Ocelot property. This creates a
total land package of 155 claims covering approximately 3,100 acres.
The Ocelot property, which includes a quartz-adularia hot-springs system,
is at the intersection of the Western Nevada Rift and the Crescent Valley
Lineament. The Western Nevada Rift is a northwest-trending magnetic anomaly
west of and sub parallel to the Eureka/Battle Mountain Trend. It is host to
numerous epithermal deposits including Florida Canyon, Sleeper and Gold Banks,
all of which contained at least two million ounces of gold. The Pipeline
deposit (greater than 15 million ounces) occurs along the Crescent Valley
Lineament, a north-northeast-trending linear feature. In addition to the known
deposits, Newcrest Mining is currently drilling the Cedars prospect, located
about 24 kilometres northeast of Ocelot and also along the Crescent Valley
Lineament. The Cedars is reported to be geologically similar to Ocelot.
As previously reported (Company news release of 22 July 2005), the TSX
Venture Exchange has notified Medallion that, in order to remain in good
standing as a Tier 2 Mining Issuer, it must acquire a mining property of merit
by 14 October 2005. The acquisition of the Ocelot property provides the
Company with a significant gold exploration property of merit. Medallion is
working with the TSX Venture Exchange to confirm the suitability of the
Property and to ensure that the Company maintains its listing as an active
Tier 2 Mining Issuer.

ON BEHALF OF THE BOARD OF DIRECTORS

"William H Bird"

William H Bird, PhD, PGeo,
President & CEO

William H Bird, PhD, PGeo, serves the Board of Directors of the Company
as an internal, technically Qualified Person. Technical information in this
news release has been prepared in accordance with Canadian regulatory
requirements set out in National Instrument 43-101 and reviewed by Dr. Bird.
This news release was prepared by Medallion management, who take full
responsibility for content. The TSX Venture Exchange has not reviewed and does
not accept responsibility for the adequacy or accuracy of this release.
Forward-looking statements in this release are made pursuant to the "safe
harbor" provisions of the USA Private Securities Litigation Reform Act of
1995. Forward-looking statements involve known and unknown risks and
uncertainties that may cause the Company's actual future-period results to
differ materially from forecasts.