Medallion Resources Closes Institutional Tranche of $2.7 Million Private Placement

Oct. 27, 2010 (TheNewswire.ca) --

Medallion Resources Ltd ("Medallion" or the "Company" - TSX.V: MDL), announces that it has closed an institutional tranche of approximately $1.175 million representing 3,916,671 million units (each a "Unit") of its non-brokered private placement of up to nine million units for gross proceeds of up to $2,700,000 (the "Offering" announced by the Company on Oct. 7, 2010). This initial tranche represents purchases made by institutional investors introduced through Global Hunter (TSXV:BOB) Securities LLC, Medallion's exclusive United States institutional facilitator for the Offering. All securities issued to purchasers and finders in this tranche will be subject to a four-month hold period ending February 26, 2011, pursuant to securities legislation and the policies of the TSX Venture Exchange (the "Exchange").

Medallion also reports that, following a review by the Exchange; it did not receive approval to increase the Offering to up to ten million Units, as announced by the Company on October 14, 2010. The Company is currently processing the remaining subscription agreements and shortly expects to close the balance of the over-subscribed Offering.

The proceeds of the Offering will be used for further exploration of the company's Eden rare-earth-element (REE) project in Manitoba and its Red Wine heavy REE project in Labrador, initial project metallurgical studies, property payments, and working capital.

Each Unit of the Offering consists of one common share and one-half transferable common-share purchase warrant (a "Warrant"). Each whole Warrant shall be exercisable to acquire one common share at an exercise price of $0.40 for a period of 36 months from closing of the Offering ("Closing Date").

About Medallion Resources (TSXV:MDL) Ltd

Medallion Resources Ltd (TSX-V: MDL) is exploring for large, low-production-cost, heavy-rare-earth-element (REE) deposits with straightforward metallurgy and cost-effective infrastructure. Headed by Dr. Bill Bird and supported by a technical team second to none, the company is well-positioned to efficiently evaluate the best prospective REE projects, incorporating new discovery methods and short-cuts to production. REEs are essential for many products and applications including wind turbines, electric and hybrid vehicles, super magnets, and all modern electronics.

Medallion is exploring the Eden Lake REE property in western Manitoba under an option agreement with Rare Element Resources Ltd (NYSE:REE) (TSXV:RES) (AMEX: REE, TSX-V: RES) that gives the right to earn a 65% interest in the exploration joint venture. A recent discovery, Eden Lake is one of North America's most prospective REE projects, with potential for high values of neodymium and significant levels of the high-value heavy REEs. The company is also exploring over 42 square kilometres of the Red Wine peralkaline intrusion in southern Labrador under an agreement to option a 100% interest in six mineral licenses (subject to a 3% royalty). The portions of the Red Wine intrusion covered by the licenses host the mineral eudialyte, known to contain elevated values of the heavy REEs.

ON BEHALF OF THE BOARD OF DIRECTORS

"William H Bird", PhD, PGeo

President & CEO

For further information visit www.medallionresources.com or contact:

William H Bird PHd, PGeo (604) 681-9558 williambird@medallionresources.com

Erica C Bearss MBA (604) 681-9558 ebearss@medallionresources.com

October 27, 2010, Vancouver, BC Medallion 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 medallion's future exploration and financing plans, objectives or goals, including words to the effect that Medallion 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 acquisitions or exploration plans. Also, in order to proceed with Medallion's exploration plans, additional funding is necessary and, depending on market conditions, this funding may not be forthcoming on a schedule or on terms that facilitate Medallion's plans.

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