Duluth Metals Positioned for Growth With Pipeline of New Exploration Properties as Well as Nokomis Development

TORONTO, December 2, 2010 - Duluth Metals Limited ("Duluth Metals") (TSX: DM) (TSX:DM.U) today
announced that exploration work has commenced on the Company's 100% owned
(non-joint venture) exploration properties which consist of approximately
31,000 acres of mineral interests adjacent to and nearby the Twin Metals
Minnesota LLC (TMM) joint venture with Antofagasta plc and Duluth Metals. The
properties provide a pipeline of new exploration targets for potential future
growth outside of the joint venture while the development of the Nokomis
Project is being advanced by TMM.

"It makes sense for the Company to continue exploration in close
proximity to known deposits that we understand geologically, and as such,
Duluth Metals has assembled an exceptional pipeline of grassroots exploration
properties within an emerging mining camp," stated Christopher Dundas,
Chairman and CEO of Duluth Metals. "Duluth Metals is looking for continued
future growth and these properties have the potential for future discoveries
in our own backyard."

The Duluth Metals exploration team has expanded and will concentrate its
exploration on three styles of mineralization within the Duluth Complex,
including typical disseminated Cu-Ni-PGEs, magma conduit related Ni-rich
massive sulphides, and Pt-rich reef type targets. Duluth Metals recently
completed a 7,053 line kilometre airborne VTEM-Magnetic survey over a 649
square kilometre area within the Duluth Complex. Condor Consulting Inc.,
recognized experts in the field of airborne electromagnetics have been
retained to perform a detailed interpretation of the results and their final
report regarding the significance of the survey is pending. Dr. Dean
Peterson, senior V.P. Exploration, and a pre-eminent authority on Duluth
Complex mineralization, is working closely with geophysicists of Condor
Consulting Inc. Drilling is scheduled to start in early 2011 on selected
State and private exploration lands.

    The eight exploration properties are:

    - the Nor'East and East Shore Properties, which are in close proximity to
      the Nokomis Deposit where pending Federal prospecting permits if issued,
      may allow exploration on the magma conduit (Nickel Lake Macrodike)
      that formed all of the South Kawishiwi Intrusion copper-nickel-PGE
      mineralization including the Nokomis Deposit;
    - the Reefs and Land O'Dixie Properties which have potential for
      Platinum-rich Reef type targets; and,
    - the Rook, Cascade, Hoyt and Lands End Properties, which are in close
      proximity to other known copper-nickel-PGE deposits in the Duluth
      Complex.

A budget of $8 Million is being considered for the upcoming 2011
exploration program which will include geologic mapping, geochemical
sampling, geophysical interpretation and drilling. In addition to the
exploration lands, pre-feasibility stage work will continue on the Nokomis
Project through Twin Metals Minnesota LLC, a new joint venture company, which
is 60% owned by Duluth Metals and 40% by Antofagasta plc.

About Duluth Metals

Duluth Metals 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 Metals, the environment in which it
operates, timing and amount of capital expenditures, results of exploration
and mine development, the availability of funding to Duluth Metals 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 Metals. 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 Metals. 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 Metals 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.

    For further information:

    Mara Strazdins,
    Director of Corporate Communications
    +1-416-369-1500 ext 222
    mstrazdins@duluthmetals.com

    Christopher Dundas
    Chairman & CEO
    +1-416-369-1500
    cdundas@duluthmetals.com

For further information: Mara Strazdins, Director of Corporate Communications, +1-416-369-1500 ext 222, mstrazdins at duluthmetals.com; Christopher Dundas, Chairman & CEO, +1-416-369-1500, cdundas at duluthmetals.com