Millstream Mines Ltd. is looking for expressions of interest from qualified mining companies to form joint venture with a strategic partner for advancement of the Potter Property.

Millstream Mines Ltd. has finalized the negotiating and signing of a memorandum of understanding with an unlisted public company for the formation of a joint venture partnership on its Tamarack Gold Property located in southwestern Montana, U.S.A. The essential terms contained in the agreement are: It is agreed and understood by the parties that the plan is to up-grade the Tamarack Gold Property's existing 60 tpd plant facilities, infrastructure, underground workings and resource definition drilling so that the project has the capacity to process mill throughput of up to 300 tons per day (300 tpd). Also, as part of this agreement, the UPC has issued 3 million treasury shares to Millstream. Millstream has assigned a 49% undivided working interest in the Tamarack to the UPC. Millstream is to be the operator/manager; The UPC to maintain its 49% interest must supply USD 4.1 million for the agreed planned upgrade to Millstream (or as directed by Millstream); The UPC is to deliver the USD 4.1 million in a timely manner through progress tranches not to exceed 12 months from the execution date of this agreement, Any shortfall of the total USD 4.1 million is subject to an interest dilution at 1% per each USD 100,000 (or any part thereof); Any dilution of the UPC working interest to 10% or less will be automatically converted to a 10% net profit interest in the Tamarack Gold Property forfeiting to Millstream a 100% undivided working interest; The UPC must deliver USD 200,000 of the USD 4.1 million on or before the end of the second completed month of being listed on the Frankfurt Exchange or another recognized exchange. Subject to the failure to obtain exchange listing within 2 months after executing this MOU, or failure to deliver the USD 200,000 as stipulated, Millstream can terminate this agreement rendering it as annulled. The result being the UPC forfeits any and all monies paid and shares issued to Millstream prior to the date of termination. The Tamarack Gold Property is a former high grade gold producer located near the town of Sheridan of the Alder Gulch region in the Tobacco Root Mountains of southwestern Montana. The Property is at an advanced stage of underground exploration, development and bulk sampling with a 60 ton per day milling capability, and operates under the Small Mines Exclusion Act of the State of Montana.

Millstream Mines Ltd. announced further on the geophysical program recently performed by Canadian Exploration Services Limited on its Potter Mine Property southern most claims. CXS' summary of the ground Magnetometer and VLFEM survey reports that these southern Potter claims are host to three 3 key anomalies "A" "B" and "C" in the survey area. Anomaly "A" located in the northeast part of the southern Potter Claims appears as a magnetically high unit bisected in the middle by an intense magnetically low feature. Within this magnetic low exists a VLF EM Very Low Frequency Electromagnetic axis indicating the presence of a conductive horizon. The geology appears to be similar to that located around the Potter Mine deposit also situated in a magnetically low feature thereby leading one to conclude that anomaly "A" may represent a zone of similar mineralization to that found at the Potter Mine deposit itself. Anomaly B" located directly west of Anomaly A" in the northwest part of the survey area appears similar to Anomaly "A" but with a weaker signature This weaker response may be attributable to a thicker layer of overburden covering this vicinity. Anomaly C" located in the southwest area of the southern claim group carries an intense magnetic signature which most likely represents that of an ultramafic source the same rock type that is host to some of the Potter Mine massive sulphide mineralization. A VLF EM axis also occurs through this anomaly thereby indicating another conductive horizon to be targeted. Further analysis of the collected raw data from the survey is ongoing. Of particular interest by changing the various wave frequencies of the dataset one is able to delve deeper into the data with the view to discovering more deep seated conductors. To this end Millstream has achieved some significant encouragement CSX recommends before drill testing the anomalies that a Mobil Metal Ion "MMI" geochemical survey be undertaken. This survey method helps to give a better indication of the potential economic metals associated within the anomalies.