LAS VEGAS, May 2 /PRNewswire-FirstCall/ -- St. George Metals (Pink Sheets:
SGGM), announces Letter of Intent to merge with Nevada Vermiculite, LLC, a
vermiculite mining company based out of Montana.
    William Haseltine, President of SGGM, stated, "This Letter of Intent with
Nevada Vermiculite potentially adds tremendous value for our shareholders.  We
are pleased to begin a mutual due diligence period with Nevada Vermiculite,
and we intend to finalize this transaction within 30 days.  This transaction
will bring in over $30M in recoverable assets through the Hamilton mining
operations in Montana.  These assets and production capabilities have the
ability to produce the highly sought after Vermiculite mineral.  Within the
U.S., there are currently only two mines in South Carolina and one in Virginia
that produce this highly useful mineral, and the demand is increasing due to
the limited amount that currently can be imported into the U.S."
    Bill Blomgren, Manager of Nevada Vermiculite, added, "We have been looking
for the right partner for our company and shareholders for several years and
are pleased that we have a working partner that can help us mine this very
lucrative opportunity.  We have many assets that we can bring to the table,
and offer this partnership the ability to mine an up-and-coming mineral that
has numerous uses."

    Nevada Vermiculite Information:
    Nevada Vermiculite's business focuses upon a niche in the industrial
mineral industry. Nevada Vermiculite's management has defined this niche as
those industrial minerals with an annual worldwide production or consumption
of less than 2.5 million tons. This level of activity fails to attract major
industrial mining companies, and, partly as a consequence, enjoys very high
margins of profitability between the sales price of the product and the cost
of producing the product.
    Nevada Vermiculite's assets are located on 96 unpatented lode and mill
site mining claims. The claims cover some 1,750 acres and are 10 air miles due
east of Hamilton, Montana on the western flank of Skalkaho Mountain.  Access
to the property and shipment of processed vermiculite is via an all-weather
road, 26 miles to Victor Crossing, Montana, where an office and loading area
is located next to a line of the Montana Rail Link Railroad. The claims are
situated at elevations around 7,000 feet above sea level within the Bitterroot
National Forest near the crest of the south end of the Sapphire Mountains.
Necessary environmental and operating permits will be secured through
appropriate State and Federal government agencies.

    Forward-Looking Statements:
    Certain statements in this news release may contain "forward-looking"
information within the meaning of Rule 175 under the Securities Act of 1933
and Rule 3b-6 under the Securities Act of 1934 and are subject to the safe
harbor created by those rules. All statements, other than statements of fact,
included in this release may include forward-looking statements that involve
risks and uncertainties. There can be no assurance that such statements will
be accurate and actual results and future events could differ materially from
those anticipated in such statements.

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