Mustang Announces Financing

TORONTO, ONTARIO -- (Marketwire) -- 12/21/12 -- Mustang Minerals Corp. (TSX VENTURE: MUM)(FRANKFURT: NJF) ("Mustang" or the "Company") today announced plans to complete a non-brokered financing for gross proceeds of up to $1,900,000. The proceeds from the financing will be used primarily for exploration and development of the companies Mayville Copper Nickel PGE Deposit and for the Makwa Nickel Project.

The financing will consist of a concurrent private placement of non-flow-through Common Shares and FlowThrough Shares (the "Offerings"). The Common Share Offering will be for Common Shares of Mustang priced at $ 0.06 per share. The Flow Through Offering will be for common shares issued on a flow-through basis (the "Flow-Through Shares") and will be priced at $0.065 per share. The Offerings will be made pursuant to exemptions from the prospectus requirements of the applicable securities laws. Shares issued under the Offerings will be subject to a hold period of four months and one day from date of closing.

During 2012 Mustang conducted resource definition drilling at the Mayville Copper Nickel PGE Deposit and the Company has engaged RPA Associates to complete an updated NI 43-101 compliant mineral resource estimate. Following completion of a positive resource estimate preliminary economic analysis of a mining operation combining the Makwa Ni-Cu Deposit and the Mayville Cu-Ni Deposit is then scheduled. The two deposits are within trucking distance to each other and are located approximately 145 km from Winnipeg in southeastern Manitoba. The deposits and their extensive exploration horizons are located in the Bird River Greenstone Belt within the western Superior Province, an emerging geological area prospective for magmatic sulphide Nickel -Copper-PGE-Chromite.

Current inventory at the projects are:

1.  The Makwa Ni-Cu Deposit has a NI 43-101 outlined reserve estimate
    completed in February 2010 by Micon International Limited of 9.86
    million tonnes in the Probable Ore Reserve category containing 0.541%
    nickel, 0.113% copper 0.433 g/t PGM at the Makwa Project.

2.  The Mayville Cu-Ni Deposit has a present NI 43-101 Indicated Resource of
    9.227 million tonnes containing 0.61% copper, 0.23% nickel and 0.174 g/t
    palladium.

Carey Galeschuk P.Geo. is the National Instrument 43-101 Qualified Person for Mustang Minerals Corp.

To find out more about Mustang Minerals Corp. (TSX VENTURE: MUM), visit our website at www.mustangminerals.com.

We seek safe harbour.

This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (together, "forward-looking statements"). Such forward-looking statements may include the Company's plans for its mineral projects in Manitoba, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risk, uncertainty of production and capital costs estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of nickel and other metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Management Discussion and Analysis for the most recent financial period and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.

Shares Outstanding: 198,160,657

Contacts:

Mustang Minerals Corp.

David Black

Investor Relations

416-955-4773
info@mustangminerals.com
www.mustangminerals.com