TSX-V: MDL VANCOUVER, July 18 /CNW/ - Medallion Resources Ltd (TSX-V: MDL) announces that it has completed the permitting for the Ocelot Gold Project Phase 1 exploration drilling. The Ocelot Gold project, located 40 kilometres northwest of Austin, Nevada, is operated by Medallion's wholly owned USA subsidiary, Medallion Resources (USA) inc. Exploration is under the guidance of J David Miller, PhD, PGeo. Medallion has an option with the vendors to acquire 100% of the Ocelot property, subject to a 3% NSR royalty. The permit allows Medallion to proceed on schedule with the 4,000 feet of drilling required for Phase 1 of the exploration program. Five drill sites and two alternates have been laid out and equipment is being organized to prepare the sites. The site preparation and logistics necessary to begin drilling should be complete shortly. Negotiation of a drilling contract is in progress and drilling is expected to begin by early August. In other business, the number of brokers' warrants granted in connection with the recent private placement was incorrectly reported at 6,300 (news release of 5 July 2006). The correct number of brokers warrants granted is 21,000, or 10% of the 210,000 units sold by the broker. Medallion Resources Ltd (TSX-V: MDL) is exploring the Ocelot gold property, which is located 40 kilometres northwest of Austin, Nevada. Exploration targets potentially deep, high-grade mineralization of the epithermal quartz-adularia gold-exploration model. This model is characterized by gold deposits such as Midas, Silver Cloud, and deeper portions of Sleeper and Grassy Mountain. Typical of the epithermal quartz-adularia gold model, the Ocelot property contains widespread occurrences of silicification, anomalous gold values and a quartz-adularia hot-springs system. The property also lies at the intersection of two major Nevada gold trends, the Independence - Crescent Valley Lineament and the Austin-Lovelock mineral belt. The Austin-Lovelock mineral belt is parallel to, and west of the Battle Mountain trend and lies along the western margins of the Northern Nevada rift structures. Both trends host significant gold deposits and the intersection of the two trends creates an excellent gold-exploration target. 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. This news release was prepared by Company 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.