TSX-V: CGLD $0.22 OTCQX: CGLDF $0.16 Gold: $1,339/oz Copper: $2.63/lb


2007 News

Vancouver, BC, December 18, 2007 - Dynasty Metals & Mining Inc. (TSX: DMM, the "Company") has exercised its option to purchase one-half of a 3% Net Smelter Returns Royalty ("NSR Royalty") from IAMGOLD Ecuador S.A. ("IAMGOLD") for US$1 million.

The NSR Royalty agreement relates to certain concessions at the Company's Zaruma Gold Project that were acquired from IAMGOLD in 2004. The Company has a second option to purchase the remaining one-half of the NSR Royalty for US$5 million by June 2009.

Company President and CEO, Robert Washer, commented: "This is a very positive step for the Company. The Zaruma Gold Project has a significant high grade gold resources estimate (see the Company's news release dated July 12, 2006 available on SEDAR at www.sedar.com) and significant exploration potential within 103 square kilometres of concession area. With gold currently valued at about $800 per ounce, the cost to exercise the option represents less than the NSR Royalty otherwise due in the first full year of production."

The Zaruma Gold Project

The Company is presently constructing a plant at its Zaruma Gold Project, which is scheduled to commence operations in the second quarter of 2008 at an initial production rate of 100,000 ounces of gold per annum.

With approximately $17 million in cash (subsequent to making the option payment), the Company has sufficient capital to fund the completion of plant construction and mining start-up at the Zaruma Gold Project, as well as continue with the Company's other development and exploration plans.

An Independent Preliminary Assessment of the Zaruma Gold Project, which is dated August 21, 2006 and is available for viewing at www.sedar.com, estimated a pre-tax cumulative undiscounted cash flow from the proposed mine of US$467 million, net of the NSR Royalty, over a 14.5 year mine life. This estimate was based upon the Company's current gold resource and gold valued at $500 an ounce.

Quality Control and Assurance

The preparation of the technical information contained in this news release was supervised by Michel Rowland, a member of the AUSIMM (Australian Institute of Mining and Metallurgy) and a "qualified person" as defined by National Instrument 43-101.

About Dynasty Metals & Mining

Dynasty Metals & Mining Inc. is a Canadian-based mining company involved in the exploration and development of mineral properties in Ecuador.

The Company has two advanced-stage projects, Jerusalem and Zaruma, and a highly prospective exploration project, the Dynasty Copper-Gold Belt, which includes the Dynasty Goldfield, the Copper Duke Project, and the Marianna Joint Venture among other prospects.

Dynasty Metals & Mining Inc.
Robert Washer, President and CEO

For further information please visit the Company's website at www.dynastymining.com, or please contact

Dynasty Metals & Mining Inc.
Murray Oliver
Tel: (604) 687-0888
Email: info@dynastymining.com
Brisco Capital Partners Corp.
Gordon Aldcorn
Tel: (403) 262-9888
Email: Gordon@briscocapital.com

This news release includes "forward-looking information", as such term is defined in applicable securities laws. The forward-looking information includes, without limitation, the estimation of mineral resources, the realization of mineral resources estimates, the success of exploration activities and other similar statements concerning anticipated future events, conditions or results that are not historical facts. These statements reflect management's current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. The Company cautions that all forward-looking information is inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among others, risks and uncertainties relating to exploration and development; the ability of the Company to obtain additional financing; the Company's limited operating history; the need to comply with environmental and governmental regulations; political and economic instability and general civil unrest in Ecuador; potential defects in title to the Company's properties; fluctuations in currency exchange rates; fluctuating prices of commodities; operating hazards and risks; competition; and other risks and uncertainties, including those described in the Company's Annual Information Form dated February 19, 2007 filed with the Canadian Securities Administrators and available at www.sedar.com. Accordingly, actual future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. All statements are made as of the date of this news release and the Company is under no obligation to update or alter any forward-looking information.

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