GENERAL METALS CORP.

In January 2006, General Metals Corporation acquired General Gold Corporation as the Company's entry into the metals exploration and mining sector. Through the acquisition of General Gold Corporation, General Metals now controls 100% of The Independence Mine, located in the Battle Mountain Gold District of northern Nevada and forms an island in Newmont Gold's Phoenix Mine. Newmont is currently spending in excess of $3 billion dollars to develop the Phoenix Mine into the largest operating gold mine in the US. The Phoenix Mine has 8.5 million ounces of gold and 660 million pounds of copper in reserves with more material to follow.

The Independence mine
The Independence mine is predominately a silver mine that produced intermittently from 1938 through 1987. Reported historic production by the various operators totalled 750,200 ounces silver and 11,029 ounces gold. The average recovered grade of all recorded production was 0.17 and 11.53 ounces of gold and silver per ton respectively.

According to Akright in his 1997 report, "the gold resource potential of the Independence property occurs in two distinct categories: a shallow open pit mineable target, suitable for heap leach and a deep underground target. Insufficient drilling has been done to calculate a proven or probable reserve for the shallow target. However, mineralized material containing 235,000 ounces of gold and 2,500,000 ounces of silver have been estimated by Carrington (1997) ... the deep target ... could contain mineralized material with 1.4 million ounces of gold." The deep target will be pursued in a Phase 2 drilling program, while the shallow target is our focus for near term development leading to early cash flow.

Shallow Targets: 235,000 oz. of gold, 2.5 million oz. of silver

GNMT's Phase 1 exploration drilling campaign is designed to bring the shallow target into a resource category, according to SEC Industry Guide 7. The development program will involve the permitting and construction of a cyanide heap leach pad that will accommodate 5-6 million tons of mineralized material. The gold and silver will be recovered by a Merrill Crowe processing system, with precipitate being smelted on site and shipped to the refinery as a gold and silver bar. Management has recently constructed and operated a similar project for another company in Nevada's Comstock Lode. The shallow target has identified mineralized material which contains 235,000 ounces of gold and 2,500,000 ounces of silver. Record gold and silver prices of over $650 and $13 per ounce respectively have encouraged rapid development of the Independence Mine.

Independence Deep Target: 1.4 - 2 million ounces of gold
This target has immediate potential to develop 1.4 to 2 million ounces of contained gold, according to the Carrington Report. Northern Dynasty Minerals reported an estimated resource of 818,000 ounces of contained gold, with an average grade of 0.27 opt gold and Noranda Exploration, in an interoffice memo estimated 2 million ounces. Approximately 25,000 feet of drill core from Noranda's drilling campaign is on site and has been relogged. Eight deep holes have been reported, all contain significant gold intercepts.

Recent acquisition: Mikite Gold Mining's 150 sq. km. Nyhinahin mining concession near Bibiani, Ghana

Effective March 15, 2007, General Metals completed the acquisition of 100% interest in Mikite Gold Resources ("Mikite"), a Ghanaian corporation with exclusive exploration rights to the Nyinahin Mining Concession near Bibiani, Ghana. The Mineral rights are for gold, diamonds and base metals.

The 150 square km Nyinahin mining concession is located between two geological gold belts, the Bibiani Belt to the west and the Asankrangwa to the east. The property shares borders with several major mining companies, including Newmont Mining, Napoli Gold and Dunkwa Continental Goldfields. The district is home to the famous Ashanti Goldfields-Obuasi Mines and is one of the most active exploratory areas in the world.

A preliminary survey by Geodita Resources LTD, Ghana, indicates that the Nyinahin Concession has significant potential for lode gold mineralization and for recovery of alluvial gold. There are 3 major anomalous zones: Owusbukurom anomaly in the center Ntoboroso anomaly in the southeast and the Krakyekurom anomaly in the southwest. There are 4 known mineralized trends: Baaneekurom-Nyinahin, Ntoboroso, Owusukurom-Adupiri and Krakyekurom-Adupiri. The reconnaissance has also shown several abandoned surface mines that are yet to be investigated due to time and budget constraints of the current owners.