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Confederation Completes Deep Drill Hole (Total Length: 1024 Meters) and Significantly Expands Gold Target at Newman Todd
Intersects Target Newman Todd Structure/Alteration System from 787.5 Meters to 931.8 Meters Below Surface

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/06/12 -- Confederation Minerals Ltd. (TSX VENTURE:CFM) ("Confederation" or the "Company") announces that, as part of its ongoing drilling program at the Newman Todd gold project, it has completed a 1024 meter-long drill hole (NT-129) to test the gold-bearing Newman Todd structure at depth. The hole was drilled at an angle of 80 degrees from the horizontal, and was oriented at azimuth 300 degrees. The hole was collared in the central part of the 1.8 kilometer long Newman Todd structural-alteration zone, from which gold mineralization has been intersected in 98 percent of the drill holes completed since January, 2011 when the current program began (refer to previous CFM news releases for a complete list of drill holes and results and visit the CFM website at www.confederationmineralsltd.com).

The objective of NT-129 was to test the depth continuity of the Newman Todd structure. Drilling of the Newman Todd structure began as 50 meter-spaced fences of holes, while during 2012 the spacing between drill fans has tightened up to 25 meters over the 200 meter "Hinge Zone". Nearly all drilling to date has been test shallower and intermediate depth mineralization, generally not deeper than 350 meters. Drilling to date has intersected gold mineralization grading 3 g/t gold and higher in 98 percent of the holes; 5 g/t gold or higher in 85 percent of the holes; and, greater than 20 g/t gold in 46 percent of the holes. The objective of hole NT-129 was to test the depth continuity of the gold-hosting Newman Todd structural-alteration zone.

At 815.8 meters core length, the hole entered the target zone (the Newman Todd structure) composed of a highly-altered and brecciated carbonate rock which is the primary host for gold on the project. This is a silica-carbonate-altered breccia, identical in appearance and alteration intensity to the same gold-hosting unit much higher in the system. The hole penetrated 152.7 meters of the altered unit, and intersected the footwall contact at 968.5 meters. Accounting for the drilling angle, the Newman Todd unit was intersected between 787.5 meters and 931.8 meters below the surface.

Within the zone of alteration, base metal sulphides including chalcopyrite, galena and sphalerite are observed locally, while magnetite replacement zones (a common and important host for gold at Newman Todd) are observed commonly within the Newman Todd structure. A minor amount of visible gold was observed macroscopically at 862.1 meters. Assays are pending.

Drilling of the Newman Todd structure at least 500 meters deeper than previous drilling is an important advance for the project. Importantly, the Newman Todd structural/alteration zone now appears to host identical geological characteristics and contains a similar strength of alteration and structural preparation to a depth of over 900 meters below the surface, while remaining wide open to depth. Very extensive depth continuity, up to and exceeding 2,000 meters below surface, is one of the characteristics of Archaean-hosted mesothermal gold deposits, such as Goldcorp's Red Lake mine, situated in the same greenstone belt as Newmann Todd. By increasing significantly the volume of potentially gold-hosting breccias within the Newman Todd structure, the exploration target has grown significantly, as has, in the opinion of Management, the potential for increasing the precious metals content of the system.

Andrea Diakow, P.Geo, is the Qualified Person as defined by National Instrument 43-101 and has reviewed the technical content of this news release.

About Confederation Minerals

Confederation Minerals Ltd. is a British Columbia-based company engaged in the business of acquisition, exploration, and development of mineral properties. Its objective is to locate and develop economic precious and base metals properties of merit. Confederation Minerals Ltd. holds an option agreement to acquire up to 70% of the Newman Todd project in the Red Lake Mining District of Northern Ontario as well as 100% ownership in another property in the Red Lake Mining District of Ontario. Confederation owns 56% of Magna Resources Ltd., a company which trades on the Canadian National Stock Exchange under the symbol "MNA" and is dedicated to the acquisition and development of potash mineral deposits in the USA and elsewhere. American Potash, a Nevada limited liability corporation, is a wholly owned subsidiary of Magna Resources Ltd. and holds certain potash leases and an option in respect of certain potash lease applications in the State of Utah that constitute the Green River Potash Project.

On Behalf of the Board,

Lawrence Dick, Ph.D., P.Geo, CEO & Director

Forward-Looking Information

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts:
Confederation Minerals Ltd.
Brian Bapty
President and Director
604-652-3950
brian.bapty@confederationmineralsltd.com
www.confederationmineralsltd.com

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