Duluth Metals and Franconia Minerals Complete Plan of Arrangement

TORONTO, March 7, 2011 -

    - Consolidates One of the World's Largest Copper-Nickel-Precious Metals
      Deposits
    - A Strategic Mega-resource for the United States in the Context of a
      Politically Safe Jurisdiction
    - Moves the Planning Within Twin Metals Minnesota LLC Towards Larger
      Scale Development and Optimization
    - Increases Potential Job Creation and Economic Impact for the State of
      Minnesota
    - Demonstrates Strength of the Strategic Partnership With Antofagasta plc

Duluth Metals Limited ("Duluth") (TSX: DM) (TSX: DM.U) and Franconia
Minerals Corporation ("Franconia") (TSX: FRA) are pleased to announce the
successful completion of their previously announced plan of arrangement (the
"Arrangement").

The Arrangement was completed on the terms and conditions of an
arrangement agreement between Duluth and Franconia dated December 20, 2010,
as amended, and effected by way of a plan of arrangement under the Business
Corporations Act (Alberta).

As previously announced, Franconia received approval from its
shareholders to proceed with the Arrangement at a special meeting of
shareholders held on March 3, 2011. The Arrangement was subsequently approved
by the Court of Queen's Bench of Alberta at a hearing held on March 4, 2011.

Pursuant to the Arrangement, Duluth has acquired all of the issued and
outstanding common shares of Franconia that it did not already own in a
transaction valued at approximately C$77 million. Franconia's assets are
expected to be rolled into Twin Metals Minnesota LLC ("TMM"), a Duluth (60%)
and Antofagasta plc ("Antofagasta") (40%) joint venture which includes the
Nokomis deposit, one of the world's largest undeveloped deposits of copper,
nickel and precious metals.

The common shares of Franconia are expected to be delisted from the
Toronto Stock Exchange ("TSX") at the close of trading on or about March 9,
2011. The commons shares of Duluth issued under the Arrangement are expected
to be listed and trading on the TSX at the opening of trading on or about
March 10, 2011.

Each common share of Franconia was acquired by Duluth for consideration
consisting of: (i) C$0.90 in cash per common share of Franconia; (ii) 0.328
of a common share of Duluth and C$0.001 in cash per common share of
Franconia; or (iii) a combination of (i) and (ii). The closing price of the
common shares of Duluth on the TSX on March 4, 2011, the last trading day
prior to the completion of the Arrangement, was C$2.78. Immediately prior to
the completion of the Arrangement, Duluth owned 3,906,250 common shares of
Franconia representing approximately 4.7% of the issued and outstanding
common shares of Franconia.

As previously announced, in connection with the Arrangement, Antofagasta
subscribed for 7,604,563 subscription receipts (the "Subscription Receipts")
issued by Duluth, by way of private placement, at a price of C$2.63 per
Subscription Receipt for aggregate gross proceeds of C$20,000,000. As a
result of the receipt of the final court order approving the Arrangement, all
of the Subscription Receipts automatically converted into common shares of
Duluth, without the payment of any additional consideration by Antofagasta.

Some of Franconia's deposits and their land holdings are contiguous with
those of TMM, and the acquisition will consolidate TMM's position in the
Duluth Complex region in northeastern Minnesota. Four deposits with NI 43-101
compliant Mineral Resources have been delineated: the Spruce Road Deposit;
the Nokomis Deposit; the Maturi Deposit, and the Birch Lake Deposit. The
joining of land positions between TMM and Franconia Minerals gives TMM over
25,000 acres of land/mineral interests and increases TMM's overall qualified
resources that may support a larger scale mine development plan.

Christopher C. Dundas, the Chairman and CEO of Duluth, stated: "The
merger between Duluth and Franconia will provide TMM the platform to plan the
development of one the world's largest nickel-copper-PGM deposits. This
merger potentially creates a stronger development project of much larger
size, scale and mine life for TMM. Our partnership with Antofagasta will
provide the financing and execution capability necessary to develop this high
economic impact project for Northern Minnesota."

A map showing the land and NI-43-101 resource consolidation is found on
the Duluth Metals website at www.duluthmetals.com under this press release.

David Oliver, P. Geo. is the Qualified Person for Duluth and Site Manager
for TMM, in accordance with NI 43-101 of the Canadian Securities
Administrators, and is responsible for Duluth's technical content of this
press release and quality assurance of the exploration data and analytical
results.

About Duluth Metals Limited

Duluth Metals Limited is committed to acquiring, exploring and developing
copper, nickel and platinum group metal (PGM) deposits. Duluth Metals has a
joint venture with Antofagasta plc on the Nokomis Project, located within the
rapidly emerging Duluth Complex mining camp in north-eastern Minnesota. The
Duluth Complex hosts one of the world's largest undeveloped repositories of
copper, nickel and PGMs, including the world's third largest accumulation of
nickel sulphides, and one of the world's largest accumulations of
polymetallic copper and platinum group metals. Aside from the joint venture,
Duluth Metals retains a 100% position on approximately 31,000 acres of
mineral interests on exploration properties adjacent to and nearby the
Nokomis joint venture.

About Twin Metals Minnesota LLC

Twin Metals Minnesota LLC is a new joint venture company, which is 60%
owned by Duluth Metals and 40% by Antofagasta plc. The joint venture's
principal asset is called the Nokomis Project, located within the Duluth
Complex mining camp in north-eastern Minnesota.

This document may contain forward-looking statements (including
"forward-looking information" within the meaning of applicable Canadian
securities legislation and "forward-looking statements" within the meaning of
the US Private Securities Litigation Reform Act of 1995) relating to, among
other things, the operations of Duluth, the environment in which it operates,
timing and amount of capital expenditures, results of exploration and mine
development, the availability of funding to Duluth and timing of geological
reports. Such statements are based on operations, estimates, forecasts and
projections. They are not guarantees of future performance and involve known
and unknown risks, uncertainties and other factors that are difficult to
predict and may be beyond the control of Duluth. A number of important
factors could cause actual outcomes and results to differ materially from
those expressed in forward-looking statements, including those set forth in
the annual information form under the heading "Risk Factors" and in the other
public filings of Duluth. Consequently, undue reliance should not be placed
on such forward-looking statements. In addition, all forward-looking
statements in this press release are given as of the date hereof. Duluth
disclaims any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise, save and except as may be required by applicable securities laws.

Duluth has its head office at 80 Richmond Street West, Suite 1500,
Toronto, Ontario. A copy of the early warning report filed by Duluth in
connection with the completion of the Arrangement is available under
Franconia's profile at www.sedar.com. Please contact one of the individuals
listed above in order to obtain a copy of the early warning report.

Webpage: www.duluthmetals.com

    For further information:

    Mara Strazdins                          Vern Baker
    Director of Corporate Communications    President
    Telephone: +1-416-369-1500 ext. 222     Telephone: +1-651-389-9990
    Email: mstrazdins@duluthmetals.com      Email: vbaker@duluthmetals.com

For further information: Mara Strazdins, Director of Corporate Communications, Telephone: +1-416-369-1500 ext. 222 , Email: mstrazdins at duluthmetals.com ; Vern Baker, President, Telephone: +1-651-389-9990, Email: vbaker at duluthmetals.com