Increased mining rate for Kalumines and Konkola North technical study completed

    -   Rapid build-up of copper mining at Kalumines in the DRC    -   TEAL Metals furnace installed in the DRC and being commissioned    -   Technical aspects of a feasibility study for the Konkola North Copper        Project in Zambia completed    -   Otjikoto's Inferred gold resource in Namibia nears the two million        ounce target    -   Options for the Mwambashi Copper Project in Zambia being  reviewed    -   Major shareholder agrees to guarantee an increase and extension of        existing bridge loan facility    

It was announced on May 15, 2007 that mining at the Lupoto prospect,which forms part of TEAL's Kasonta-Lupoto Mines ("Kalumines") Copper-CobaltProject, had started. At the time of the announcement, the Company wasanticipating a mining operation at a rate of 70,000m(3) per month, which wouldproduce over 20,000 tonnes per year of concentrate. These targets havesubsequently been revised and monthly planned production is now building-up to110,000m(3), producing 40,000 tonnes of mineralized material per month. Fromthis, 3,200 tonnes per month of concentrate will be produced grading between20% and 25% copper, containing approximately 10,000 tonnes of copper per year.

TEAL Metals (DRC) s.p.r.l. ("TEAL Metals") will purchase all theconcentrates from Kalumines and feed its furnace at a rate of 1,800 tonnes permonth. This furnace, which is in the process of commissioning, has a capacityto produce approximately 5,000 tonnes per year of 'black copper' ingots with agrading of 85% to 95% copper.

The surplus concentrates, some 1,400 tonnes per month, will be sold tovarious other smelter operators in the DRC, in particular, to Société Minieredu Katanga s.p.r.l. ("Somika") with whom TEAL Metals has formed a jointventure to process the material at Somika's facilities until December 2007.TEAL Metals will contribute the concentrate, while Somika will contribute allcosts of operation, and profits will be shared on an equal basis.

A feasibility study on a larger open pit mining operation at Lupoto,together with a dedicated processing facility, is in progress and is scheduledfor completion after the verification and in-fill resource drilling, as wellas the metallurgical test-work, has been concluded.

The first results from the exploration drilling program at Lupoto wereannounced on July 11, 2007. TEAL is conducting a 5,200 metre explorationdrilling program on the property to verify and update the historical resource.TEAL has drilled nearly 4,200 metres to date on the Lupoto area comprising 31reverse circulation and 23 diamond core boreholes. Borehole R-001 hasconfirmed the historical interpretation of the upper zones of mineralizationas 2.7 metres grading 11.20% copper, and 13 metres at 6.44% copper on theeastern limb of the main Lupoto structure. Additional drilling information isbeing geologically logged and interpreted. TEAL believes the mineralization isopen ended at depth and on strike, and current drilling is targeting theshallow (above approximately 100 metres depth) and predominately oxide copperenrichment.

The technical aspects of the Konkola North Copper Project feasibilitystudy, based on an operation to exploit the South and East Limb areas of theorebody, have been completed. The study has confirmed the practicality ofutilizing the existing shaft to gain rapid access to the orebody and miningfirst in the South Limb area, followed by the East Limb. The Konkola Northmine is forecast to produce 1,250,000 tonnes per year of run-of-mine ore,predominantly using the sub-level open stoping as well as room-and-pillarmining methods, for an expected build-up to an average production over the16-year life of mine of 25,000 tonnes of contained copper per year. The lifeof mine production contained in the study is forecast at 17.9 million tonnesof ore grading 2.16% copper. It remains the intention to assess the viabilityof a dedicated processing facility for Konkola North and this will be analyzedas a separate project following the completion and approval of the currentstudy, which is expected following the conclusion of the remaining aspects totake this study to a bankable level.

The Board of Directors has approved expenditure of US$1.5 million for theKonkola North Copper Project. These funds will be used to secure long leaditems, such as the electrification for the mine winder system, upgrading ofthe mine power supply to the mine, and the detailed design of the steelworksections in the shaft that requires replacement. The mining contractor willalso be appointed and underground rehabilitation work will continue, whichwill allow mining to commence as soon as the mine winders have been installed.

TEAL is conducting a pre-feasibility study on the Otjikoto Gold Projectand completion of this study is anticipated in early 2008. Following apositive conclusion, this will lead to the immediate initiation of a bankablefeasibility study with the goal of fast tracking the Otjikoto Gold Project toa possible mine development decision.

TEAL recently completed an interim phase of geological modelling andgeostatistical evaluation from its ongoing phase of drilling of the Otjikotodeposit. The current total combined Inferred resource estimate has increasedby 35% to 44 million tonnes at 1.246g/t, providing 1.76 million ounces ofgold. Results from boreholes TC23, TC40 and OT152 have confirmed, andextended, high grade zones of mineralization. TC23 returned 18.90m grading3.05 g/t gold, TC40 16.20m grading 9.54 g/t gold and OT152 returned 13.50m at6.46 g/t gold. This represents an increase of 460,000 ounces from the previous1.3 million ounces, which was audited and supported by SRK Consulting inFebruary, 2007. The additional ounces have resulted from the intersection ofextensions to the mineralization to the eastern and southern areas of thedeposit.

Internationally accredited laboratories are used to analyze samples fromthe Otjikoto Gold Project:

    -   Core samples from the resource expansion and infill drilling: SGS        Lakefield Research Africa (Johannesburg, South Africa) and Genalyses        Laboratory Services (Pty) Ltd (Perth, Australia);    -   Otjikoto exploration and Greater Otjikoto Exploration Area core        samples: ALS Chemex (Johannesburg, South Africa); and    -   Soil samples are processed by Genalyses Laboratory Services (Pty) Ltd        (Perth, Australia).    

As at end June 30, 2007, TEAL's cash resources amounted toUS$5.9 million, and the Company also had access to an additional US$10 millionremaining from a one-year US$20 million bridge loan facility entered intoduring the financial year under review, which is being guaranteed by TEAL'smajor shareholder, African Rainbow Minerals Limited ("ARM"). Subsequent toyear-end, ARM has agreed to increase the guarantee to $50 million, subject toSouth African Reserve Bank approval, which will ensure that TEAL has afacility in place beyond the end of the 2008 financial year or until long-termfunding is arranged. TEAL is currently negotiating the terms, including anextension beyond the one-year time-frame, with Standard Chartered Bank. Thesefunds will be directed towards work to support studies on the core projects:the Konkola North and Kalumines copper projects, as well as the Otjikoto GoldProject. Funding for the capital expenditure at Konkola North, Kalumines andOtjikoto will be pursued after the completion of the final feasibilitystudies.

The Company recorded a consolidated net loss for the three months endedJune 30, 2007 of $8.6 million, or $0.16 cents per share, which compares to anet loss for March 31, 2007 of $9.6 million, or $0.18 loss per share. Over thetwelve month period, TEAL reported a net loss of $27.3 million or $0.51 centsper share. This compares to a net loss of $9.0 million, or $0.27 cents pershare, for the twelve months ended June 30, 2006. This year-on-year increaseis indicative of the accelerated expenditure that occurred over the last yearon exploration drilling programs, project development and the commencement ofmining in the DRC.

TEAL's Chief Financial Officer, Mr. Hannes Otto Meyer (37), the Company'sChief Operating Officer, Mr. Arné Nicolaas Lewis (38), as well as ARM'sExecutive: Business Development, Africa, Mr. Daniel Simelane (45), have beenappointed to the Board.

Mr. Claus Schlegel, Pr. Sci. Nat. (No. 400149/90), TEAL's Vice President:Exploration and Business Development, is the "qualified person" for thecontent of this press release for purposes of National Instrument 43-101.

NOTE:

TEAL is incorporated under the laws of the Yukon, Canada and its commonshares are listed on the Toronto Stock Exchange ("TSX") and the JSE Limited("JSE"). The common shares of the Company trade under the symbol "TL" on theTSX and "TEL" on the JSE.

TEAL is a mineral development and exploration company with developmentprojects and exploration areas in Namibia, Zambia and the Democratic Republicof Congo ("DRC"). TEAL has a portfolio of base and precious metal developmentprojects and complementary exploration areas, and the Company continues toseek other opportunities, mainly in southern and central Africa.

TEAL has targeted specific projects: the Konkola North Copper Project inZambia; the Otjikoto Gold Project in Namibia; and the Kalumines Copper-CobaltProject in the DRC. TEAL also has interests in various other mineral licenceareas in Zambia and in Namibia on which the Company continues drilling andother exploration activities.

A copy of TEAL's Annual Financial Statements and the MD&A are availableat as well as at

For further information

Julian Gwillim (VP: Investor Relations andCorporate Development) on (416) 828-1422 (Canada), or +27 82 4524 389 (SA), orjulian@tealmining.com
or Rick Menell (President and CEO) on +27 82 450 2301,or