Medallion Increases Non-Brokered Private Placement Financing

TSX.V:MDL

VANCOUVER, Oct. 7 /CNW/ - Medallion Resources Ltd. ("Medallion" or the "Company" - TSX.V: MDL) is pleased to announce that due to strong demand, it has increased its previously announced non-brokered private placement (see 1 October 2008 news release) from $250,000 to up to $330,000 by the issuance of an aggregate of up to 1,650,000 units at a purchase price of $0.20 per unit (each "Unit").

Each Unit will consist of one common share of the Company and one-half of one non-transferable common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share at an exercise price of $0.25 per share at any time during the period of two years following the closing of the private placement. All securities issued pursuant to the private placement will be subject to a four-month hold period from the date of the closing of the private placement. The private placement is subject to regulatory approval.

The net proceeds of the private placement will be used to fund the initial work program on the Romaine River Iron-Titanium Project (see 2 September 2008 news release) and for general corporate purposes.

ON BEHALF OF THE BOARD OF DIRECTORS

"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 reviewed by Dr Bird and prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101. Company Management, which takes full responsibility for content, prepared this news release. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future exploration and financing plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in these statements. Such risks include expectations that may be raised by discussing potential mine types and by comparing the Company's projects to other projects. Also, in order to proceed with the Company's exploration and acquisition plans, additional funding is necessary and, depending on market conditions, this funding may not be forthcoming on a schedule or on terms that facilitate the Company's plans.

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