TORONTO, ONTARIO--(Marketwire - May 17, 2010) - Treasury Metals Inc. ("Treasury" or the "Company") (TSX:TML) today released its report for the first quarter ending March 31, 2010. The Company is also pleased to provide an update from its exploration program on the Goliath Gold Project, located approximately 20 km east of the City of Dryden in northwestern Ontario.

Goliath Gold Project Update (January to May 2010)

• Continued to advance the Preliminary Economic Assessment (Scoping Study) being completed by consultants A.C.A. Howe International Limited.
• Reported high-grade gold assay results from its 31 hole, 4,500 metre diamond drilling program (October to December) aimed at testing the western extension of the Main Zone of the Thunder Lake gold deposit.
• Confirmed gold mineralization for over 650 metres west of the Thunder Lake Gold Deposit including the identification of at least one high-grade ore shoot at the western edge of the mineral resource. Significant high-grade gold intersections included:
  • TL09-75: 3.56 g/t Au over 1.10 m (from 48.00 to 49.10 metres)
  • TL09-76: 21.32 g/t Au over 0.20 m (from 130.00 130.20 metres)
  • TL09-77: 24.45 g/t Au over 1.10 m (from 24.90 to 26.00 metres)
  • TL09-81: 19.34 g/t Au over 1.50 m (from 60.50 to 62.00 metres)
• Completed an 8 hole, 5,206 metre diamond drilling program (February-March 2010) aimed at testing deeper (+400 metre vertical) high-grade structures within the Main Zone of the Thunder Lake gold deposit.
• Confirmed continuity of Main Zone mineralization and high-grade gold structures at +725 metres vertically. Significant high-grade gold intersections included:
  • TL10-87: 13.85 g/t Au over 1.00 m (from 508.0 to 509.0 metres)
  • TL10-88: 20.03 g/t Au over 1.00 m (from 477.0 to 478.0 metres)
  • TL10-90: 8.36 g/t Au over 1.00 m (from 501.5 to 502.5 metres)
  • TL10-93: 16.12 g/t Au over 0.50 m (from 733.05 to 733.55 metres)
• Initiated a geophysical program of surface and borehole induced-polarization (IP) surveys in order to characterize high-grade gold structures, target areas of potential mineralization between drill holes, generate new off-hole targets and to gain an overall better understanding of the Main Zone mineralization.
• Announced a further +5,000 metres of diamond drilling (2 rigs), aimed at testing shallow and deep targets in the Main Zone and confirming geophysical targets being generated by surface and borehole induced-polarization surveys.

"We are looking forward to the results of our Preliminary Economic Assessment which is due out before the end of the second quarter," commented Scott Jobin-Bevans, President & CEO. "It will include an updated NI 43-101 mineral resource estimate which will be used to consider a combination of open pit and underground mining scenarios. The goal of this study is to provide us with an economic model on the Thunder Lake gold deposit that will dictate our approach to developing this deposit and serve as a guide in future exploration and development on the Goliath Gold Project."

The Company continues to advance the Goliath Gold Project through expansion of the current resources (Thunder Lake Gold Deposit) and property-wide exploration programs planned for the remainder of 2010. In addition, Treasury will continue to actively seek new acquisition opportunities in the Kenora Gold District that are accretive to its existing gold property portfolio.

Financings

• Subsequent to the quarter received financing of $637,875 through the exercise of 2,033,750 warrants and 67,500 options year-to-date.

Three Months Ended March 31, 2010

During the first quarter ended March 31, 2010 Treasury invested $536,031 on mineral properties as compared to $63,359 during the same period in 2009. These expenditures are expected to remain consistent during the next quarter.

For the three months ended March 31, 2010, Treasury incurred a net loss of $8,935 ($0.00/share) compared to a net loss of $70,298 ($0.00/share) in 2009. The Company's net NSR revenue in this period was $162,136 (a record quarter) as compared with $113,300 in 2009. The increase is mainly a result of higher production and higher gold prices.

At March 31, 2010, working capital totalled $442,504, compared to ($74,019) at the same time last year. The Company also had investment holdings of $1,976,972 as compared to $1,190,272 as at March 31, 2009.

Outlook 2010

Looking into the second quarter the Company will primarily focus on exploration and development of the Goliath Gold Project by increasing and improving the current mineral resources and concurrently investigating the sensitivities to develop these resources toward feasibility. Treasury will also aggressively target, review and, if desirable, acquire and develop advanced gold assets in northwestern Ontario in order to augment and strengthen its current mineral property portfolio.

About Treasury Metals

Treasury Metals Inc. is a mineral exploration company that is actively developing its 100% owned flagship Goliath Gold Project. The Goliath Gold Project contains the Thunder Lake Gold Deposit that has more than 1.0 million estimated ounces of gold, consisting of 130,000 indicated ounces (820,000 tonnes at 4.8 g/t Au; Main Zone) and 920,000 inferred ounces (7,000,000 tonnes at 4.1 g/t Au; All Zones), using a cut-off grade of 2.0 g/t Au (see NI 43-101 report – "Report on the Goliath Project, Kenora Mining Division, Northwestern Ontario, Canada" dated December 19, 2008 – filed on SEDAR). Mineral resources are not mineral reserves and by definition do not demonstrate economic viability. Drilling of the Thunder Lake Gold Deposit to date has intersected the Main Zone over a strike length of about 1,700 metres, with thicknesses of 0.5 to 30 metres (average width of 7.6 metres at 0.5 g/t Au cut-off) and a high-grade core with an average width of 1.9 metres (3.0 g/t Au cut-off).

Treasury Metals has royalty revenue from Goldgroup Resources' Cerro Colorado Mine in Mexico along with other monetizable assets. Treasury Metals has a strong shareholder base and its management team and board are seasoned mining industry veterans with proven track records.

For additional information on Treasury Metals and its projects, please visit the Company's website at www.treasurymetals.com.

Forward-looking Statements

Securities regulators encourage companies to disclose forward-looking information to help investors understand a company's future prospects. This press release contains statements about our future financial condition, results of operations and business. These are "forward-looking" because we have used what we know and expect today to make a statement about the future. Forward-looking statements usually include words such as may, expect, anticipate, believe or other similar words. We believe the expectations reflected in these forward-looking statements are reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our business or events that happen after the date of this press release. You should not place undue reliance on forward-looking statements. As a general policy, we do not update forward-looking statements except as required by securities laws and regulations.

Forward-looking Statements

Securities regulators encourage companies to disclose forward-looking information to help investors understand a company's future prospects. This press release contains statements about our future financial condition, results of operations and business. These are "forward-looking" because we have used what we know and expect today to make a statement about the future. Forward-looking statements usually include words such as may, expect, anticipate, believe or other similar words. We believe the expectations reflected in these forward-looking statements are reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our business or events that happen after the date of this press release. You should not place undue reliance on forward-looking statements. As a general policy, we do not update forward-looking statements except as required by securities laws and regulations.