Blaine, WA: Tamerlane Ventures Inc. (TAM: TSX-V) is pleased to announce the positive results of its bankable Feasibility Study for the Pine Point Project, located in Canada’s Northwest Territories. The Feasibility Study and Scoping Study were completed by Tamerlane’s staff of engineers and geologists, and the Feasibility Study was reviewed by the third party consultants Chlumsky, Armbrust & Meyer (CAM). Mr. Steve Milne, P.Eng., was the Independent Qualified Person for the Mining Section review by CAM. The study results show the Pine Point Project is feasible and will provide exceptional returns by industry standards.

The Feasibility Study covers all aspects of infrastructure development, mining and processing. As outlined in the Feasibility Study, Tamerlane will focus first on the R-190 deposit, which will utilize a freeze perimeter and other proven technologies for underground mining operations. The Company will then use this infrastructure to access a series of nearby deposits that have been upgraded to the indicated resource category. The indicated resources currently total 10.9 million tonnes. In the future, Tamerlane intends to use historical data, including the results of extensive drilling and operating data, in addition to further infill drilling to verify the historical reserves as current reserves and convert the remaining 50 million tonnes of historical resources to reserves, if feasible.

Unless otherwise noted, all dollar amounts in this press release are in US dollars.

1. Reserves and Resources

The Pine Point Property was the subject of a recently completed National Instrument 43-101 report (NI 43-101). The reserve and resource technical report was prepared by Chlumsky, Armbrust and Meyer, LLC (CAM): the “independent qualified persons” in accordance with the provisions of NI 43-101 are Fred Barnard, California Professional Geologist and Robert Sandefur, P.E. CAM’s work included a thorough review of the geological interpretation, exploration program, and data compilation, including quality assurance/quality control (QA/QC) procedures. All of the parameters used by Tamerlane to define resources and reserves were also reviewed.

Reserves were compiled from historic resources and confirmed during Tamerlane’s 2005 core drilling of the R-190 deposit. Reserves were defined by cut-off parameters for the R-190 deposit. Grade shells for 2%, 5% and 7% zinc cutoff grades were constructed. Grade and tonnages for each of the grade shells were calculated using reserve modeling software.

A preliminary NPV analysis was performed on each of the grade shells for the R-190 deposit to determine the optimal grade shell for extraction. The results of the reserve analysis showed that a 5% zinc grade shell gave the R-190 deposit the highest value resource at 1,000,027 tonnes with grades 11.16% zinc and 5.49% lead (Table 1-1).


Table 1-1
R-190 Deposit Reserves

(Information in this table was reviewed by CAM)

Tonnes
Zinc %
Lead %
R-190 Reserves
1,000,027
11.16
5.49


Five additional deposits in the district, not subject to the R-190 Feasibility Study, contain indicated resources estimated at 10.9 million tonnes at a combined grade of 7.12% zinc and lead (Table 1-2).


Table 1-2
Indicated Resources*
(Information in this table was reviewed by CAM)

Deposit
Tonnes
Lead %
Zinc %
P-499
877,000
2.88
6.45
O-556
861,000
4.32
4.22
X-25
3,124,000
2.30
6.54
G-03
3,444,000
3.00
4.10
W-85
2,597,000
1.05
2.82
TOTAL
10,903,000
2.43
4.69

*Note: Mineral resources that are not mineral reserves do not have demonstrated economic viability.


An additional 50,936,000 tonnes of historic resources are located on the property at an average grade of 3.84% zinc and 1.24% lead. A NI 43-101-qualified report has not been completed on the historic resources and they should not be relied on as current mineral resources (Table 1-3).


Table 1-3
Historical Resources*

(Information in this table was reviewed by CAM)

Deposit
Tonnes
Lead %
Zinc %
Westmin total resources
(V-46, W-19, Z-155)
1,268,000
3.91
6.35
Other Cominco historic resources
49,669,000
1.17
3.77
· Tonnages classed as “inferred” (included in 49,669,000 tonnes above)
32,542,000
0.90
3.07
· Tonnages classed as “indicated” (included in 49,669,000 tonnes above)
17,126,000
1.69
5.11
TOTAL
50,936,000
1.24
3.84

*Note: A qualified person has not done sufficient work to classify the historical estimate as current mineral resources, and the issuer is not treating the historical estimate as current mineral resources. The historical estimate should not be relied upon.

2. Project Description

Tamerlane’s Pine Point Project is located in Canada’s Northwest Territories, approximately 42 km east of Hay River. The Company controls a total area of 175 km2, including both the historic Pine Point Mine property as well as a contiguous property to the west originally explored by Westmin Resources (Westmin). Tamerlane’s Pine Point Project includes more than 60 known zinc-lead deposits.

The Company is initially focused on the R-190 deposit and has upgraded the deposit to minable reserve status. The Pine Point Project will be developed as an underground mine and will operate 365 days per year. The mine will utilize a freeze perimeter curtain to control groundwater, a vertical conveyor to hoist ore to the surface, and Dense Media Separation (DMS) with flotation to upgrade the zinc and lead concentrates.

The Pine Point Project property is 100% owned by Tamerlane Ventures Inc., subject to a 3% NSR payable to the property’s previous owners. Mineral royalties based on net revenues less all operating costs and allowances for depreciation and processing are also payable to the Northwest Territories (NWT) under the Canadian Mining Regulations.

3. Geology

The Pine Point Property is geologically located in the Western Canada Sedimentary Basin in the Northwest Territories near the southern shore of Great Slave Lake. The deposits occur in the mid-Devonian Pine Point carbonate barrier complex and are Mississippi Valley type lead-zinc deposits.

Karsting occurred along three northeast-trending zones parallel to the strike of the barrier complex and the lead-zinc deposits are hosted within these karst cavities.

The R-190 deposit lies within the main trend of the Pine Point mineralized trends. The ore body is a prismatic type occurring in a karst which bottoms just above sandy dolomite in the Pine Point Formation and continues up through the Watt Mountain Formation into the Slave Point Formation.

4. Mining

Mining the Pine Point Project will utilize:

· Perimeter freeze curtain for groundwater control
· Vertical shaft sinking for ore body access
· Underground mechanized longhole stoping for increased tonnage
· Vertical conveyance for consistent hoisting of ore
· Dense Media Separation and flotation processes for upgrading a direct-shipped concentrate

Infrastructure construction and development is estimated to take 12-15 months prior to the commencement of mining operations. The underground workings will be mined using a concrete lined main shaft, vertical conveyance system, and rubber tired diesel/electric equipment. In addition to the vertical conveyance system, the main shaft will also include a service hoist for moving personnel and materials. A secondary escapeway and ventilation raise will also be installed to allow flow through ventilation. In April 2007, Tamerlane contracted Thyssen Mining to conduct shaft sinking setup and sinking designs.

The Pine Point Project will be dewatered using proven freezing technology to maintain a frozen ring of ice, or freeze curtain, around the project perimeter during the development and mining. The freeze curtain will extend from the surface to a depth of approximately 185 meters, surrounding the entire R-190 mineral deposit and underground infrastructure. The primary purpose of the freeze curtain is to prevent the intrusion of water from the aquifer into the underground mine workings. Any excess water underground will be collected in a sump, pumped to the surface and then either reused in the concentrating circuit or discharged to an injection well for re-introduction into the groundwater system. In May 2007, Tamerlane contracted Layne Christensen Company to conduct engineering and designs for the Pine Point Project’s freeze perimeter.

The Pine Point Project will utilize a vertical conveyor to move ore and waste from underground workings to the surface facilities. Mined material will enter a primary crusher located at the bottom of the shaft. The material will be sized to minus 4-inch before entering the vertical conveyance system. The vertical conveyor will lift the material from the mine at an effective rate of 160 metric tonnes per hour from the bottom of the shaft to the collar. The vertical conveyor requires less energy to operate than conventional hoisting and has the ability to move large volumes of material at a constant rate of speed. A consistent material feed rate allows for increased efficiency in the design of the processing system and reduces the amount of material handling and stockpiling required. Virtually all waste contained in the one million tonnes of total material extracted from the R-190 deposit will be returned underground for backfilling purposes. This environmentally-friendly approach eliminates the need for permanent tailings dams. In April 2007, Tamerlane contracted FKC-Lakeshore, a division of Frontier Kemper Constructors, Inc., to engineer and design systems and equipment related to the vertical conveyor system.

5. Processing

Dense Media Separation will take advantage of the significant difference in the specific gravity (SG) of the host rock and remove it from the ore with minimal loss of sulphides. The pre-concentration process will save capital, operating costs and energy consumption for the project. The media used in the circuit will be ferro-silicon. It is inert by nature and poses no risk to the environment. Further processing to upgrade the lead and zinc products will involve a traditional flotation circuit that will not utilize cyanide.

The DMS process works on the basis of SG differences between waste and ore, such that the waste material having a lighter SG will float off, while the concentrate material having a higher SG will sink. Test work has indicated that this process will upgrade the product 58% with minimal (approximately 5%) metal losses.

The upgraded ore will then be sent to a flotation circuit. After further coarse grinding, the material will first pass through a circuit designed to liberate the lead from the zinc and waste, and then to a second circuit to separate the zinc from the waste. The tailings from the flotation circuit will be thickened and mixed with cement and the coarse crush DMS float aggregate. The resulting material will be sent back underground for backfill and shotcrete purposes. There will be no long-term storage of tailings or other process waste on the surface at the Pine Point Project site.

The process system is designed to eliminate the use of cyanide, which is a potentially hazardous chemical. The exclusion of cyanide from the process flow is accomplished through the use of DMS, additional grinding, and the use of inert chemicals such as lime and copper sulphate.

6. Surface Infrastructure/ Utilities

Highway 5 runs within 0.5 km of the Pine Point Project. The highway will be the primary road access to the site and the route for transporting concentrate from the mine to the rail head in Hay River.

Electric power for the Pine Point Project will be provided from the Talston Dam via transmisson lines. In addition to power provided from the Talston dam, Tamerlane will incorporate diesel generator sets to provide self-sufficient, uninterrupted power to the mine site for surge capacity and safety back-up.

The Pine Point Project site will include several buildings, including a compressor building, vertical conveyor facility, slurry/shotcrete plant, office, dry, warehouse, maintenance shop, fuel and lube facility, headframe facility, freeze plant and process plant. Two additional structures will be located near the process plant. One will be an aggregate storage area for material that will be recycled underground. The other will serve as storage for zinc and lead concentrate waiting to be shipped.

7. Schedule

Infrastructure construction is estimated to take 12-15 months, followed by the R-190 extraction period which is anticipated to last an additional 12-15 months. Tamerlane will then develop drifts to access other deposits from the R-190 deposit. Approximately 6 million tonnes of resources from five different deposits are accessible from the R-190 shaft after mining of the initial deposit is completed.

8. Environment and Mitigation

Tamerlane is currently in the application process for its land and water use permits for the Pine Point Project. Tamerlane anticipates receipt of the environmental permits following completion of the remaining activities outlined in the Mackenzie Environmental Impact Review Board (MVEIRB) and Mackenzie Valley Land and Water Board’s (MVLWB) permitting processes. Key permitting activities completed to date are listed in declining chronological order below.

· July 2007
- Tamerlane completes Technical Sessions with MVEIRB as part of the Environmental Assessment process.
· May 2007
- Tamerlane submits its Final Revised Developer’s Assessment Report to MVEIRB in response to the Final Terms of Reference.
· October 2006
- Tamerlane receives information requests (Final Terms of Reference) from MVEIRB.
· June 2006
- Tamerlane’s Pine Point Project is referred to the Mackenzie Valley Environmental Impact Review Board (MVEIRB) for Environmental Assessment by Environment Canada in June 2006.
- Tamerlane submits its applications for land and water use permits to the MVLWB.

Environmental concerns regarding the Pine Point Project are minimal. The process will utilize DMS and coarse grind for flotation. Long-term tailings storage will not be required because waste will be returned underground for backfilling purposes. The chemicals used to process the ore are inert and will not pose a threat to the surrounding environment. No surface subsidence is expected because the mine will be backfilled. The freeze ring will effectively control groundwater without impacting the local groundwater environment.

9. Human Resources and Socioeconomic Factors

Tamerlane has worked closely with all stakeholders to address environmental and socio-economic concerns. The Company is committed to employing Northern and Aboriginal residents during the entire mine life of the Pine Point Project. In addition, Tamerlane anticipates employing residents of the South Slave region. Tamerlane anticipates utilizing residents of the South Slave Area wherever possible during the construction phase and the initial 12 to 15 month operations phase. The Company has signed exploration agreements with the Deninu K'ue First Nations and K'atlodeeche First Nation that provide for their participation in the benefits of the Pine Point Project’s development and operations.

10. Capital Cost

Suppliers, contractors and equipment manufacturers were sourced to provide budget quotes for the direct and indirect costs associated with the equipment, process, installation and commissioning required for zinc and lead concentrate production. The total estimated capital cost of construction, including a 10% contingency is $93.3 million dollars. The initial working capital for the first 90 days of production is estimated at $33.9 million. A breakdown of the costs is included in Table 10-1.

Table 10-1
Capital Costs
(Information in this table was reviewed by CAM)

Item
Capital Cost
Freezing & Infrastructure
$49,163,413
Surface Buildings (installed)
$2,241,789
Crushing and Milling Circuit
$12,553,000
Support Equipment
$16,635,842
Critical Spares
$862,689
Rail Head Loadout
$1,307,828
Other Infrastructure
$635,911
Communications
$56,927
Underground Utilities
$804,000
Misc. Items
$620,000
Subtotal
$84,881,400
Contingency at 10%
$8,488,140
Total
$93,369,540




















Should the company elect to sell its concentrate into the spot market and not enter into a long term smelting contract, Tamerlane will evaluate options for short-term financing of $33.9 million for initial working capital.

Table 10-2
Sustaining Capital for Additional Deposits in Scoping Study
(Information in this table was not reviewed by CAM)

Deposit
Capital Cost
P-499
$32.2 million
O-556
$24.2 million
X-25
$32.7 million
V-46
$16.8 million
Z-155
$24.0 million

11. Operating Costs

The operating costs for the R-190 deposit were calculated from actual quotations where possible, and from other similar scale projects in Canada. The operating costs are determined on a cost per tonne mined basis at an aggregate $53.29 per tonne as described in Table 11-1.

Table 11-1
Operating Cost Summary: R-190 Deposit Only

(Information in this table was reviewed by CAM)

Item
Cost/Tonne Mined
Mining
$32.83
Processing
$13.21
Power
$5.75
Admin/Tech/Environmental
$1.50
Total
$53.29


Operating cash costs per payable pound of metal (total lead and zinc) for R-190 mining operations are $0.20/lb.

Table 11-2
Estimated Future Operating Costs from Scoping Study
(Information in this table was not reviewed by CAM)
Deposit
Cost/Tonne Mined
P-499
$49.70
O-556
$51.20
X-25
$53.50
V-46
$59.70
Z-155
$56.30


12. Financial Analysis

The financial model for the R-190 deposit was developed using capital quotations and estimates from suppliers and contractors, and operating costs from similar operations in Canada. The cash flow model for the financial analysis was run under three different metal price scenarios including a bankable Feasibility Study price scenario, LME 15 month futures price scenario, and current price scenario (Table 12-1). The three price scenarios indicate a range of potential outcomes.

The feasibility price scenario used metal prices that were based on historical prices over the past two and three year periods and were averaged equally with the 15 month LME futures price. These prices are conservative for financing purposes and forecast a net cash flow of $52.7 million.

The second price scenario utilized 15 month LME contract prices to show more favourable project economics at hedgeable prices as of the market open August 21, 2007. The 15 month LME contract price scenario forecasts a net cash flow of $93.1 million.

The current price scenario was based on LME cash metal prices as of the market open August 21, 2007. This price scenario carries the most risk in terms of variability, but also forecasts the most favourable project economics with a net cash flow of $115.4 million.


Table 12-1
Financial Analysis (pre-tax): R-190 Deposit Only
(Information in this table was reviewed by CAM)

Feasibility Price Scenario
LME 15-Month Futures Price Scenario 8/21/07
Current Price Scenario
8/21/07
Metals Prices
Zinc
$1.30
$1.33
$1.41
Lead
$0.80
$1.24
$1.36
IRR
54%
97%
121%
Net Cash Flow @ 0%
$52.7 million
$93.1 million
$115.4 million
Net Present Value NPV @ 5%
$40.9 million
$75.6 million
$94.8 million

The Scoping Study completed by Tamerlane, but not reviewed by CAM, for five nearby deposits (P-499, O-556, X-25, V-46, Z-155) and the R-190 deposit estimates a cumulative Pre-tax Cash Flow of $297 million during the first six years of mining. The preliminary analysis assumes a price scenario of $0.80 lead and $1.30 zinc, utilizing much of the R-190 infrastructure, and inflation of wages at 4.0% and costs 3.0% annually (Table 12-2).


Table 12-2
Scoping Study Financial Analysis: R-190 Deposit & Five Additional Deposits
(Information in this table was not reviewed by CAM)

Scoping Study Price Scenario
Current Price Scenario
8/21/07
Metals Prices
Zinc
$1.30
$1.41
Lead
$0.80
$1.36
IRR
89%
167%
Net Cash Flow @ 0%
$297 million
$595 million
Net Present Value NPV @ 7.5%
$203 million
$422 million


The following tables outline pre-tax cash flow scenarios for the R-190 deposit and indicated resources, but do not include historic resources.


Table 12-3
Cumulative Pre-tax Cash Flow Scenarios for R-190 Only

(Information in this table was reviewed by CAM)

Lead Price/lb.
Zinc Price/lb.
Cash Flow
Feasibility Study Price Forecast
$0.80
$1.30
$52.7 million
LME Month Futures (on 8/21/07)
$1.24
$1.33
$93.1 million
Current Cash Prices (on 8/21/07)
$1.36
$1.41
$115.4 million


Table 12-4
Scoping Study Pre-tax Cash Flow Scenarios: R-190 Deposit & Five Additional Deposits

(Information in this table was not reviewed by CAM)

Lead Price/lb.
Zinc Price/lb.
Cash Flow
Preliminary Analysis Price Forecast
$0.80
$1.30
$297 million
Current Cash Prices (on 8/21/07)
$1.36
$1.41
$597 million

Figure 12-5
Sensitivity Analysis on Costs: R-190 Deposit

(Information in this figure was reviewed by CAM)


Sensitivity analyses were performed to indicate which inputs drive return on investment. For the R-190 deposit, the most critical project variables in declining order are zinc price, zinc grade, metal recovery and capital costs. Over the life of the R-190 mining operation, the analyses indicate that each $0.01/lb increase in the price of zinc increases the project’s net cash flow by $1.57 million, and that each $0.01/lb increase in the price of lead increases the project’s net cash flow by $811,000. A 10% change in mined grade results in a 22% change in IRR. The project is four times more sensitive to each percent change in capital costs than each percent change in operating costs.

13. Smelting

In July 2007, Tamerlane issued Requests for Proposals to smelters for treatment charges of zinc and lead concentrates. Based on the Letters of Interest the Company receives, Tamerlane will negotiate final terms.

14. Financing

Tamerlane is evaluating several financing options for the Pine Point Project. Favourable near-term metals prices provide opportunities to reduce project risk. The current outlook for zinc and lead is very favourable and provides a positive environment for securing the necessary capital for the project.

The Feasibility Study and Scoping Study discussed above cover mining operations through 2014. Tamerlane intends to complete engineering work and feasibility studies for the remaining 50 million tonnes of historical resources concurrent with construction and development of the R-190 deposit.

15. Qualified Person

Tamerlane’s preliminary Scoping Study herein described was prepared under the guidance of Mr. Ross F. Burns, P.Geo., LG, who is designated as a Qualified Person with the ability and authority to verify the authenticity and validity of the data.

Ross Burns, President & CEO, said: “We are extremely pleased with the work that has been done to date by the team of Tamerlane engineers and geologists. The economics of the Pine Point Project are exceptional, and we look forward to establishing a sustainable long-term mine. Our next objective is to secure adequate financing on favorable terms, and our Chairman Margaret Kent and I will be evaluating financing proposals over the next several months.”

Investor Conference Call

The Company will host an investor conference call regarding completion of the positive Feasibility Study and reserve report for the Pine Point Project.

The conference call will be held on Monday, August 27 at 11:00 a.m. Pacific time (2:00 p.m. Eastern time) to discuss details of the Feasibility Study and reserve report. Mining analysts, investors and the media are invited to phone 1-800-779-9513, or 1-210-234-0009 if outside Canada and the U.S.A., followed by the pass code 8160293 approximately 5 minutes before the start of management’s presentation. The presentation will be followed by a question and answer period. A replay of the conference call can be heard through Friday, September 4 by dialing 1-866-509-6762, or from outside North America 1-203-369-1927.


“Ross F. Burns”

President & CEO

For further information, please contact:
Brent Jones, Manager of Investor Relations
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Phone: (360) 332-4653
Fax: (360) 332-4652
Website: www.tamerlaneventures.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this press release.


Caution Concerning Forward-Looking Information

This press release contains forward-looking information within the meaning of applicable securities laws. We use words such as “may”, “will”, “should”, “anticipate”, “plan”, “expect”, “believe”, “estimate” and similar terminology to identify forward-looking information. It is based on assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and accordingly, readers should not place undue reliance on those statements. Risks and uncertainties that may cause actual results to vary include but are not limited to the speculative nature of mineral exploration and development, including the uncertainty of reserve and resource estimates; operational and technical difficulties; the availability to the Company of suitable financing alternatives; fluctuations in zinc, lead and other resource prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks arising from our activities; fluctuations in foreign exchange rates; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management’s Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com.