TORONTO, ONTARIO--(CCNMatthews - March 8, 2007) - Millstream Mines Ltd. (TSX VENTURE:MLM)(FRANKFURT:NJD) is pleased to report the discovery of a new, rich copper and zinc sulphide zone intersected in the upper section of drill hole S07-02, referred to as the "3rd Interval" (see PR Mar. 5, '07). The high assay values, the location of the intercept vertically from surface and its proximity to the 2nd last mine level (7th level) are significant and could have a dramatic impact on the accessibility for future mining.

Mr. Dave Gamble, P.Geo, (Q.P.) has states, "the current interpretation of this intersection is that it represents a new sulphide zone located approximately 50 metres south of past mine workings and 280 metres below surface. Further, the zone indicates that we are dealing with a stacked series of parallel sulphide intervals at Potter."

The assay data for the whole of S07-02 is as follows starting with the newly discovered zone:

                                        Core
Hole No.           From      To       Length     Cu      Zn      Co     Ag
                (metres)             (metres)    (%)     (%)     (%) (oz/T)
S-07-02
3rd Interval     312.50   325.8         13.3   2.08    2.54   0.039   0.37
------------


Including         318.0  325.80          7.8   3.29    4.33   0.061   0.58
Including        318.85   319.3         0.45   7.51    0.76   0.013   1.10
Including         321.8   322.3         0.50   2.28   14.78   0.102   0.61


1st. Interval    478.05   485.5         7.45   3.34    2.34   0.092   1.02
-------------


Including        478.05  483.05         5.00   4.82    3.43   0.191   1.46
                 478.05  478.75         0.70  15.10    2.54   0.165   4.61
                 479.60   480.0         0.40   1.15   14.70   0.047   0.71


2nd. Interval    503.20   505.5         2.30   1.18    0.91   0.046   0.38
-------------

All samples were sent for assay to Swastika Laboratories Ltd. of Ontario, Canada.

Millstream's 3rd diamond drill Hole S-07-02 cut rich copper and zinc massive sulphide zones, on strike and east of the previous 2 drill holes S-06-01 and S-07-01, on the Potter Property's 2006-07 exploration program. The new intersections continue to extend the massive sulphide (MASU) zones on strike, in depth and correlate with previously reported drill hole intersections.

The dip of Hole S-07-02 is -62 degrees with azimuth 000.5 targeted to test the areas further east from the intercepts identified in Holes S-06-01 and S-07-01.

Potter Mine History and Exploration Highlights

During the copper boom of the late 1920's a shaft 30 feet deep was sunk which intersected sulphides grading 1 to 2% copper. However, the mineralization had limited length. Follow up assessment work led to approximately 40,000 ft. (12,191 m) of diamond drilling. In 1957, a three compartment shaft was sunk to 408 feet (124.35 m). A crosscut was driven on the 350 foot (106.67 m) level. In May 1962, a proposal was made to move Thorncliffe Mines' milling plant located in Garrison Township to the mine property. By June, l965, the shaft was deepened to 630 feet (192 m) and two new levels opened at 350 (106.67 m) and 600 foot (182.87 m) depths (Canad. Mines Handbook, l965). In February, 1966 the mine was renamed Munro Copper Mines Limited. The mine began to produce copper in 1967. Between 1967 and 1972, 477,572 tons of ore were milled. The average recovered grade of the ore milled was 1.63% copper and 1.5% zinc with 0.1 - 0.5 oz. Ag per ton and traces of gold.

The Potter copper-zinc volcanic hosted massive sulphide deposit is located in the Kidd-Munro (KM) Assemblage of the Abitibi Greenstone Belt (AGB) in Ontario near the town of Matheson. The AGB, a subprovince in the Archean Superior Province is the world's largest Archean greenstone belt covering an area in excess of 100,000 sq. km. Millstream Mines Ltd. 100% wholly owned property consists of 16 patented mining claims, 12 leased mining claims and 10 optioned mining claims. The land package of 38 claim units covers 1520 acres or 608 hectares.

The Kidd-Munro assemblage is well known for the excellent classic komatiite exposures at Pyke Hill (which is located on the Potter Property) in Munro Township and also for the world class volcanogenic massive sulphide base metal deposit at Kidd Creek. The KM assemblage, 2717-2710 Ma, contains regionally extensive komatiites and is one of the most ultramafic-rich volcanic successions of any age in the world.

After 1972, The property largely remained idle until Millstream Mines Ltd., between the years of 1995 to 2001, conducted many different exploration programs including linecutting, ground geophysical surveys, geological surveys, geochemical orientation surveys and associated petrographic studies, along with surface diamond drilling programs totalling 17,300 metres drilled in 37 holes. The highlights of the drilling activity are:

                                 Core
Hole No.      From       To      Length    Cu     Zn      Co      Ag
           (metres)             (metres)   (%)    (%)     (%)  (oz/T)
S97-08A     482.40   483.90        1.50  3.62   3.19   0.136    0.86
            491.86   494.40        2.54  2.33   9.09   0.073    1.08
            504.20   506.20        2.00  6.00   4.37   0.082    1.91
            537.40   543.70        6.30  2.32   3.14   0.000    0.12


S97-09      604.60   627.50       22.90  2.65   2.70   0.080    0.76
including   613.60   623.00        9.40  3.86   4.57   0.128   1.153


S98-01      695.15   702.90        7.75  5.34   3.24   0.067    1.16
including   695.15   700.40        5.25  7.81   4.76   0.096    1.69
            773.50   776.50        3.00  2.17   3.90   0.047    0.46
including   774.35   776.50        2.15  2.95   5.42   0.053    0.61


S98-05      420.12   423.75        3.63  2.69   0.29   0.079    0.49
            507.40   519.70       12.30  1.53   2.05   0.131    0.42
including   513.00   519.70        6.70  2.14   2.47   0.174    0.58
including   515.00   519.70        4.70  2.54   3.38   0.168    0.70


S98-06      653.90   680.66       26.76  2.57   1.68   0.082    0.61
including   653.96   665.50       11.60  4.34   2.18   0.122    0.94
including   656.90   663.49        9.59  5.01   2.63   0.131    1.09
            696.62   705.30        8.68  3.39   0.80   0.071    0.67
including   696.62   703.00        6.38  4.46   1.06   0.094    0.89


S99-01A     1171.9  1179.72        7.82  1.96   3.18   0.085    0.53
including   1171.9   1176.4        4.50  1.98   4.55   0.098    0.61
including   1171.9   1175.2        3.30  2.19   5.96   0.116    0.71
            1165.2   1166.2        1.00  1.26   1.18   0.036    0.29
            1161.0   1162.0        1.00  1.71   0.46   0.037    0.34
            1158.4  1159.95        1.55  2.11   1.40   0.093    0.50


     GOLD ASSAYS NOT INCLUDED; ALL ASSAYS OBTAINED FROM SWASTIKA LABS

Recently, Millstream management along with the help of its consultant Mr. Dave Gamble, P.Geo, elected to structure a program to commence with a surface diamond drill program to further enhance the area from a vertical depth of 1100 ft. (335.26 m) to 1800 ft. (548.6 m) below the past mine workings in order to confirm an initial resource as per NI 43-101.

The results from the recent drilling activity, outside of the above reported hole S07-02, are as follows:

                                     Core
Hole No.         From      To      Length    Cu         Zn       Co     Ag
              (metres)            (metres)   (%)        (%)      (%) (oz/T)
S-07-01
1st. Interval  477.75   505.0       27.25  1.68       2.39    0.011   0.73


including      486.15   505.0       18.85  2.40       3.28    0.039   1.02
               495.80   505.0        9.20  3.68       5.03    0.052   1.51
               495.80   502.3        6.50  3.70       6.13    0.050   1.46


2nd. Interval  527.60   530.1        2.50  0.98       3.29    0.020   0.36


S-06-01
1st. Interval  passed through open mined stope, hit a section of its sill
               (floor)
               388.00   389.2        1.20  4.67       2.41    0.149   0.87


2nd. Interval  439.90   466.1       26.20  1.57       1.22    0.047   0.47


including      448.65   466.1       17.45  2.09       1.64    0.049   0.57
               453.50   466.1       12.60  2.26       1.94    0.046   0.61
               459.80   466.1        6.30  2.57       3.07    0.053   0.66


         GOLD ASSAYS NOT INCLUDED; ALL ASSAYS OBTAINED FROM SWASTIKA LABS

Millstream continues drilling to further explore this potentially rich volcanogenic massive sulphide (VMS) type deposit at its Potter property. The Potter Property is located in the highly prolific Abitibi Greenstone Belt in the Kidd-Munro Assemblage near the town of Matheson in north eastern Ontario, Canada.

Management has reviewed this report and press release with the company's consultant Edward Bettiol, P. Eng, and David Gamble, P. Geo, both being designated qualified persons for the property per NI 43-101.

The principle objective of Millstream Mines Ltd. is to enhance and develop known mineral properties to production potential.

50,751,040 SHARES ISSUED

Mar. 7, '07 Close: $0.31

No regulatory authority or similar body approved nor disapproved the information contained herein.

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