TORONTO, ONTARIO--(Marketwire - July 5, 2010) - Ecometals Limited (TSX VENTURE:EC)(BERLIN:GDQ)(FRANKFURT:GDQ) -

Ecometals Limited is pleased to announce the signing of a non-binding Memorandum of Understanding to form a Joint Venture company with a private arm's-length Mexican company for joint ownership and operation of the Los Alonsos Gold-Silver exploration project in Jalisco State, west-central Mexico.

Summary

• Ecometals believes the Los Alonsos prospect provides it with a reasonably priced entry into an existing gold exploration project where initial exploration by the owners has highlighted the potential for bulk tonnage low grade Au+Ag high sulphidation epithermal mineralization conducive to open pit mining and heap leach extraction.
• Limited exploration work conducted on the property by the current owners comprised trenching, resampling of historical mine workings, outcrop sampling and five percussion drill holes. Composite samples from the drill cuttings indicate a possible bulk average gold equivalent grade of >1g/t over intercepts of >50m. Mineralization is widely distributed over an area of more than 200m x 450m and which is potentially open in all directions, especially to the South where there are historical workings which have yet to be sampled.
• Ecometals' MOU refers to an initial payment of US$150,000 and 500,000 Ecometals shares for 50% equity in a JV company. The JV company will hold the ownership of the mineral tenement and surface rights. After an initial 2 year period of exploration, Ecometals can increase its shareholding in the JV company to 85% for an additional investment of US$150,000 plus 500,000 Ecometals shares, with remaining 15% free carried and with Ecometals having a future call on the remaining shares.
• Los Alonsos provides Ecometals with a suitable investment opportunity with a Latin American focus while at the same time reducing its country risk profile without significantly diverting resources from its existing operations.

Chief Executive Officer Fran Scola said, "This new Joint Venture in a relatively under explored area of Mexico, which is a stable country with a mature mining industry, expands the portfolio of prospective gold exploration properties in the Ecometals fold. Historical small scale production and initial geochemical sampling results from the Los Alonsos property are encouraging for mineral discovery potential."

Qualified Person

SR McMullan, P.Geo, Vice President of Exploration for Ecometals Limited, is a qualified person according to National Instrument 43-101 definition and has prepared the technical information included in this press release.

About Ecometals

Ecometals Limited is a TSX Venture Exchange-listed mineral exploration and development company focused on mineral resources in Latin America. Apart from its gold exploration projects in Ecuador, Ecometals also has significant manganese, gold and iron projects in Brazil at grass roots exploration and development planning stages.

Safe Harbor Statement: Statements contained in this release that are not historical facts are forward-looking statements which involve risk and uncertainties, which could cause actual results to differ materially from those expressed in forward-looking statements.These specifically include references to potential for bulk tonnage low grade Au + Ag open pit and heap leach mining operations, and also posible grades resulting from limited sampling and assays.

For images accompanying this press release, readers are referred to the Company Web site: www.ecometalslimited.com.