Duluth Metals Set to Drill Significant Exploration Properties Outside of Joint Venture

TORONTO, Sept. 17, 2012 /PRNewswire/ - Duluth Metals Limited (“Duluth”) (TSX: DM) (TSX: DM.U) today announced that subject to the receipt of Bureau of Land Management
(BLM) Prospecting Permits which are now expected to be issued on
September 20(th), Duluth will mobilize and commence an immediate exploration drilling
program on its key land positions situated in the South Kawishiwi
Intrusion (SKI) of the Duluth Complex, Minnesota. Drill targets on the
Nor’East and East Shore exploration properties are in close proximity
to and within the Nickel Lake Macrodike.  This geological feature is
thought to be the primary feeder structure for the
copper-nickel-palladium-platinum-gold mineralization found in the SKI.

“The Nor’East and East Shore exploration properties were applied for on
the basis of a geological model developed by Dr. Dean Peterson, Senior
V.P. Exploration of Duluth Metals. As the Nickel Lake Macrodike is
thought to be the source of nearby qualified mineralization, we feel
the potential for these properties to host similar mineralization to
the close-by Maturi Deposit is very high”, stated Vern Baker, President
of Duluth Metals.  “Upon receipt of the prospecting permits, we intend
to mobilize drills and commence a comprehensive drill program to test
these significant properties for magma conduit-hosted type targets as
soon as possible”.

The primary exploration focus on the Nor’East and East Shore Properties
is for copper-nickel-PGM mineralization, similar to other known
deposits in the Duluth Complex, (e.g., the Maturi Deposit and the deep
portions of the Mesaba Deposit).  The Nor’East property is situated at
the junction of the Nickel Lake Macrodike and the South Kawishiwi
Intrusion and represents a prime target area for Duluth Metals. 
Geological modeling indicates that the property has the potential to
host a “Voisey’s Bay” type massive sulfide target.  The three initial
drilling target areas are:

        --  Target Area 1 - The Nickel Lake Macrodike area
        --  Target Area 2 - Two miles south of the Nickel Lake Macrodike
        --  Target Area 3 - The Harris Lake/Heart Lake area approximately 4
            miles S of the Nickel Lake Macrodike.

Dr. Dean Peterson, Senior V.P. Exploration of Duluth Metals has
co-authored a paper(1) on the geological interpretation of the Nickel Lake Macrodike, entitled
“Geology of the Nickel Lake Macrodike and its Association with
Cu-Ni-PGE Mineralization in the Northern South Kawishiwi Intrusion,
Duluth Complex, Northeastern Minnesota” which can be viewed on the
Duluth Metals website at www.duluthmetals.com. ((1)Peterson, D.M. and Albers, P.B., 2007, Geology of the Nickel Lake
Macrodike and its association with Cu-Ni-PGE mineralization in the
northern South Kawishiwi Intrusion, Duluth Complex, northeastern
Minnesota: Institute on Lake Superior Geology, 53rd Annual Meeting,
Field Trip #4, Field Trip Guidebook, Lutsen, Minnesota, Volume 53,
pages 61-88.)

Duluth Metals has completed a 7,053 line kilometer airborne
VTEM-Magnetic survey, a detailed ground gravity survey, a geochemical
survey, and detailed geological mapping program, and has defined high
priority exploration targets on the Nor’East and East Shore Properties.

A map showing the location of Duluth Metals Limited exploration
properties and proposed drill sites can be found on the Company website
at www.duluthmetals.com under this press release.

About Duluth Metals Limited

Duluth Metals Limited is committed to acquiring, exploring and
developing copper, nickel and platinum group metal (PGM) deposits.
Duluth Metals has a joint venture with Antofagasta plc on the Twin
Metals Project, located within the rapidly emerging Duluth Complex
mining camp in north-eastern Minnesota. The Duluth Complex hosts one of
the world’s largest undeveloped repositories of copper, nickel and
PGMs, including the world’s third largest accumulation of nickel
sulphides, and one of the world’s largest accumulations of polymetallic
copper and platinum group metals. Aside from the joint venture, Duluth
Metals retains a 100% position on approximately 40,000 acres of mineral
interests on exploration properties adjacent to and nearby the Twin
Metals Minnesota LLC joint venture.

This press release contains forward-looking statements (including
“forward-looking information” within the meaning of applicable Canadian
securities legislation and “forward-looking statements” within the
meaning of the US Private Securities Litigation Reform Act of 1995)
relating to, among other things, the results of drilling operations of
Duluth Metals and exploration and mine development.  Generally,
forward-looking statements can be identified by the use of words such
as “plans”, “expects” or “does not expect”, “is expected”, “budget”,
“scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or
“does not anticipate”, or “believes”, or variations of such words and
phrases or statements that certain actions, events or results “may”,
“could”, “would”, “might” or “will be taken”, “occur” or “be
achieved”.  Duluth Metals has relied on a number of assumptions and
estimates in making such forward-looking statements, including, without
limitation, the prices of copper, nickel and platinum group metals
(PGMs) and the costs associated with continuing exploration and mining
development.  Such assumptions and estimates are made in light of the
trends and conditions that are considered to be relevant and reasonable
based on information available and the circumstances existing at this
time. A number of risk factors may cause actual results, level of
activity, performance or outcomes of such exploration and/or mine
development to be materially different from those expressed or implied
by such forward-looking statements including, without limitation,
whether such discoveries will result in commercially viable quantities
of such mineralized materials, the possibility of changes to project
parameters as plans continue to be refined, the ability to execute
planned exploration and future drilling programs, possible variations
of copper, nickel and PGM grade or recovery rates, the need for
additional funding to continue exploration efforts, changes in general
economic, market and business conditions, and those other risks set
forth in Duluth Metals’ most recent annual information form under the
heading “Risk Factors” and in its other public filings.  Statements
related to “reserves” and “resources” are deemed forward-looking
statements as they involve the implied assessment, based on
realistically assumed and justifiable technical and economic
conditions, that an inventory of mineralization will become
economically extractable.  Forward-looking statements are not
guarantees of future performance and such information is inherently
subject to known and unknown risks, uncertainties and other factors
that are difficult to predict and may be beyond the control of Duluth
Metals.  Although Duluth Metals has attempted to identify important
risks and factors that could cause actual actions, events or results to
differ materially from those described in forward-looking statements,
there may be other factors and risks that cause actions, events or
results not to be as anticipated, estimated or intended.  Consequently,
undue reliance should not be placed on such forward-looking statements.
In addition, all forward-looking statements in this press release are
given as of the date hereof.  Duluth Metals disclaims any intention or
obligation to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise, save and
except as may be required by applicable securities laws.  The
forward-looking statements contained herein are expressly qualified by
this disclaimer.

SOURCE Duluth Metals Limited