ABML Announces Strategic Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 23, 2008) - American Bullion Minerals Ltd. ("ABML" or the "Company") today provided a strategic update to its investors.

Loan Financing

On October 22, 2008 the Company entered into a loan agreement (the "Loan Agreement") with Red Chris Development Company Ltd. ("Red Chris") under which Red Chris has agreed to advance to the Company a loan of up to $250,000 (the "Loan") in tranches of $50,000 each. The Loan bears interest at the rate of 10% per year, calculated monthly, matures on September 30, 2009, and is secured by a general security agreement creating a charge over all of the Company's assets.

ABML intends to use the proceeds from the Loan to fund the preparation of updated financial statements, to engage financial advisors to assist in negotiating and evaluating any offers for the common shares of the Company ("Common Shares") held by the shareholders other than Red Chris ("Minority Shareholders") and for general working capital. Red Chris has indicated that it does not intend to reduce its current ownership interest in ABML.

Background

On May 29, 2001 the British Columbia Securities Commission issued a cease trade order prohibiting all trading in the securities of ABML (the "CTO") as a result of the Company's failure to file audited financial statements. The securities of the Company are also subject to cease trade orders issued by the Alberta and Ontario securities commissions. On October 21, 2008 the British Columbia Securities Commission granted an order partially revoking the CTO to permit the completion of the Loan.

On September 14, 2001 the Common Shares were delisted by the Toronto Stock Exchange as a result of ABML's failure to satisfy its minimum listing requirements. At present, the Common Shares are not listed or quoted on any stock exchange or other market and the trading of such securities is prohibited by the CTO.

On May 3, 2004 bcMetals Corporation ("bcMetals") acquired 4,333,333 Common Shares and warrants to purchase an additional 4,000,000 Common Shares pursuant to a refinancing agreement dated October 22, 2003, which was approved by the Supreme Court of British Columbia. On June 30, 2004 bcMetals purchased an aggregate of 2,403,700 Common Shares from various shareholders of the Company pursuant to a private share purchase agreement dated September 12, 2003 (as amended).

On June 9, 2004 bcMetals and the Company (through its Receiver-Manager) entered into a debt settlement agreement, which was approved by the British Columbia Supreme Court, pursuant to which, among other things, bcMetals exercised warrants resulting in its acquisition of an additional 4,000,000 Common Shares on June 30, 2004. At present, the issued and outstanding share capital of ABML consists of 20,524,831 Common Shares, of which 10,737,033 Common Shares (52.31%) are held by Red Chris (which is the successor to bcMetals).

Status of Minority Shareholders Litigation

In August 2006 ABML was petitioned into bankruptcy by bcMetals, which was both its principal creditor and majority shareholder. Subsequently, a group of minority shareholders of ABML commenced a class action proceeding against bcMetals, the Company and a former director alleging oppression (the "Oppression Litigation"). On May 21, 2008 the Company's bankruptcy was annulled by the Supreme Court of British Columbia. Although the Oppression Litigation is still pending, on September 25, 2008 the petitioners' application for class certification was adjourned generally.

Appointment of Directors

On August 1, 2008 the British Columbia Supreme Court granted an order appointing Brian Kynoch, Andre Deepwell and Bill Espley as directors of the Company. Messrs. Kynoch and Deepwell are also officers and/or directors of Red Chris and its parent company, Imperial Metals Corporation ("Imperial"). Mr. Espley is a shareholder of ABML, and has no affiliation with Imperial or Red Chris. On August 20, 2008 the new board of directors of ABML appointed Mr. Kynoch as President and Secretary.

Formation of Special Committee

On September 23, 2008 the board of directors of ABML formed a special committee (the "Special Committee"), consisting of Bill Espley, with a mandate to establish and implement a process to solicit, negotiate and evaluate offers to purchase the Common Shares held by the Minority Shareholders. The Special Committee is currently in the process of selecting financial advisors to assist in this process. ABML's goal is to provide liquidity to the Minority Shareholders.

Status of Red Chris Project

ABML's principal asset is a 30% reversionary carried ownership interest in 47 mineral claims covering 9,595 hectares known as the Red Chris property, located in northwest British Columbia approximately 80 kilometres south of Dease Lake. The remaining interests in the Red Chris property are held by Red Chris, and the property is subject to a 1.8% net smelter return royalty held by Falconbridge Limited.

Red Chris received approval to proceed with exploration and geotechnical work on the Red Chris property from the provincial and federal governments in July 2005 and May 2006, respectively. On September 25, 2007 the Federal Court of Canada granted an order setting aside the federal approval (which consisted of a screening report) on procedural grounds. On June 13, 2008 the Federal Court of Appeal set aside the decision of the Federal Court, and confirmed the federal environmental assessment of the Red Chris project, which concluded that the project is unlikely to cause significant adverse environmental effects. In September 2008 MiningWatch Canada filed an application with the Supreme Court of Canada seeking leave to appeal the decision the Federal Court of Appeal. Red Chris together with the Attorney General of Canada, The Ministry of Fisheries and Oceans and the Ministry of Natural Resources have opposed this application. The Supreme Court of Canada is expected to issue a ruling as to whether or not it will hear the appeal prior to the end of December.

Construction of a 15 kilometre access trail to the Red Chris property was completed in September 2008 and an exploration and detailed geotechnical investigative program has been initiated.

Reference should be made to Imperial's Annual Information Form for the year ended December 31, 2007 for more information relating to the Red Chris project generally (including the results of the 2007 drilling program) and to Imperial's Material Change Reports dated June 16, 2008 and September 16, 2008 for more information concerning the status of the litigation relating to the federal environmental assessment of the Red Chris project, each of which is available on SEDAR at www.sedar.com.