President's Letter to Metalline Mining Company Shareholders

COEUR D'ALENE, Idaho, Aug. 27 /PRNewswire-FirstCall/ -- As Metalline
(Amex: MMG) announced July 29, 2008, the understanding of the nature of the
zinc resource at Sierra Mojada has changed appreciably since we started
evaluating it in 2005. As a result of continued drilling, and application of
a less constrained geologic framework, we now have a new resource model that
more than doubles the zinc metal content of the Oxide Zinc mineralization and
which now includes an appreciable amount of silver. This new and larger
resource has altered the approach we are taking to development of the project,
and open pit mining is again an option. During the investigation of mining
methods by Pincock Allen & Holt, in early 2007, open pit mining was rejected
due primarily to the high strip ratio required to extract the high-grade
resource, and underground mining methods were selected as the preferred
alternative for mine development. With the recent receipt of the much larger
oxide zinc resource model a new open pit optimization indicates that higher
production rates and economies of scale are possible and preliminary economic
evaluation now suggests open pit mining to be the more economic mining method.
Consequently, as announced, the underground mine plan, concentrator and test
mining were suspended in order to evaluate a much larger scale operation.
This larger scale operation is intended to exploit both the now much larger
Oxide Zinc (plus silver) mineralization and the Silver Polymetallic
mineralization, which is currently the focus of our exploration drilling
activities.
As a result of this change in focus, project activity will concentrate on
an in-fill drill program to increase the drill hole density on approximately
one-third of the Oxide Zinc mineralization and to bring the adjacent Silver
Polymetallic mineralization to a sufficient drill hole density that a resource
model can be completed on the amount of mineralized material that is projected
to fall within the open pit mine plan. The Silver Polymetallic mineralization
must be evaluated because a portion of it would be mined during stripping of
the Oxide Zinc mineralization. In addition, the current knowledge of this
system indicates it could add significantly to the scope of the mining
operation and the overall economics of the project. The Silver Polymetallic
mineralization borders the Oxide Zinc mineralization on the north side of the
Sierra Mojada fault over the entire length of the Oxide Zinc resource model
and beyond.
A drill program to accomplish these objectives is currently being planned.
We are particularly well prepared to conduct this program with 5 company-owned
drills, and with drill crews sufficient to operate each drill two shifts per
day. In addition we have state-of-the-art sample preparation and Atomic
Adsorption analytical labs on site to facilitate rapid processing of drill
samples and prioritization of samples that are sent to commercial laboratories
for further analyses. We can conduct the required evaluation very cost
effectively. Under the present uncertain financial and commodity market
conditions, drilling to define additional resource is the most productive way
to add project and shareholder value.
Additional metallurgy studies will need to be conducted to determine how
the lower grade oxide zinc mineralization performs in the concentration
process and for potential by-product credit metals. The Silver Polymetallic
mineralization contains silver, copper, cobalt, zinc, lead sulfides and
standard flotation recovery techniques will need to be studied.
The preliminary economic evaluation of the project continues to be very
favorable. The higher production rate of an open pit operation and the larger
metal content produces much more robust economic results than the 3,000 tpd
underground mine and concentrator option that was the previous baseline
development model. Open pit mining of Silver Polymetallic mineralization, in
an early phase of stripping for open pit mining the Oxide Zinc mineralization,
has not yet been considered in the economic model; the potential economic
impact of the Silver Polymetallic mineralization is believed to be very
favorable.
Sincerely
Merlin Bingham
President

Forward-Looking Statements
This news release contains forward-looking statements regarding future
events and Metalline's future results that are subject to the safe harbors
created under the Securities Act of 1933 (the "Securities Act") and the
Securities Exchange Act of 1934 (the "Exchange Act"). These statements are
based on current expectations, estimates, forecasts, and projections about the
industry in which Metalline operates and the beliefs and assumptions of
Metalline's management. Words such as "expects," "anticipates," "targets,"
"goals," "projects," "intends," "plans," "believes," "seeks," "estimates,"
"continues," "may," variations of such words, and similar expressions, are
intended to identify such forward-looking statements. In addition, any
statements that refer to projections of Metalline's future financial
performance, Metalline's anticipated growth and potentials in its business and
other characterizations of future events or circumstances are forward-looking
statements. Readers are cautioned that these forward-looking statements are
only predictions and are subject to risks, uncertainties, and assumptions that
are difficult to predict, including those identified elsewhere herein and
Metalline's Annual Report on Form 10-KSB for the fiscal year ended October 31,
2007 under "Risk Factors." Therefore, actual results may differ materially
and adversely from those expressed in any forward-looking statements.
Metalline undertakes no obligation to revise or update any forward-looking
statements for any reason.
SOURCE Metalline Mining Company

Merlin Bingham of Metalline Mining Company, +1-208-665-2002, fax,
+1-208-665-0041, metalin@attglobal.net