Metallica Resources Announces a Doubling of Measured & Indicated Resources at the El Morro Project, Chile

Metallica Resources Inc's (TSX: MR)(AMEX: MRB) joint venture partner, Xstrata Copper, has provided an updated resource estimate for the La Fortuna copper-gold deposit. This update represents an approximate 100% increase in measured and indicated copper and gold resources over a previously reported resource estimate completed by Metallica in 2005. At a 0.3% copper cutoff grade the new resource estimate shows:

- 6.38 billion pounds of copper and 8.22 million ounces of gold in the measured and indicated categories

- 2.23 billion pounds of copper and 2.74 million ounces of gold in the inferred category

When all mineral resource classifications (measured, indicated and inferred) are considered, the updated resource estimate represents a 7% increase in total tonnes, a 7% increase in contained copper and a 15% increase in contained gold over the 2005 resource estimate. Approximately 70% of the La Fortuna resource is now classified in the measured and indicated categories. This compares to the 2005 resource estimate where approximately 38% was in the indicated category and the remainder was in the inferred category. There was no resource in the measured category in the 2005 resource estimate. The La Fortuna deposit is contained within the El Morro joint venture project and is 30% owned by Metallica Resources.

In addition to the updated resource estimate, Xstrata Copper has informed Metallica that it has initiated a 6,000 meter core drilling program designed to extend the high grade secondary copper zone in the upper portion of the La Fortuna deposit, upgrade deeper inferred resources to measured and indicated status, and improve the delineation of higher grade zones within the central part of the La Fortuna porphyry stock. The drilling program is scheduled to be completed by the end of this year.

The updated resource estimate is based on 147 core holes totaling approximately 57,900 meters. The resource classification is based in part on a simulated mine pit and metal prices of US$1.20/lb copper and US$400/oz gold such that all measured and indicated resources are included within the simulated pit shell. At the 0.3% copper cutoff grade, Metallica Resources' 30% interest in the La Fortuna resource equates to:

- 1.91 billion pounds of copper and 2.47 million ounces of gold in the measured and indicated categories

- 0.67 billion pounds of copper and 0.82 million ounces of gold in the inferred category

Xstrata's resource estimate of the La Fortuna deposit on a 100% basis is as follows: