gnmt businessplan

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General Metals Corporation

Business Plan

January 2012


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General Metals CorporationConfidential

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This presentation contains forward-looking statements within the meaning of applicable Canadian securities regulations

and Section 21E of the United States Securities Exchange Act of 1934, as amended and the Private Securities Litigation

Reform Act of 1995. All statements other than statements of historical fact herein including, without limitation, statements

regarding potential resources and reserves, exploration results, production rates and future plans and objectives, are

forward-looking statements that involve various risks and uncertainties. Such forward-looking statements include, without

limitation, (i) estimates and projections of future gold production and cash operating costs, (ii) estimates of savings or cost

reductions, (iii) estimates related to financial performance, including cash flow and capital expenditures, (iv) estimates

and projections of reserves and resources, (v) estimates and opinions regarding geologic and mineralization interpretationand (vi) estimates of exploration investment and scope of exploration programs. There can be no assurance that such

statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in

such statements, in particular the estimates do not include input cost increases or gold price variations that could occur in

the future. Important factors that could cause actual results to differ materially from the companys expectations are

disclosed in documents filed from time to time with the U.S. Securities and Exchange Commission (SEC). Forward-looking

statements are based on the estimates and opinions of management on the date the statements are made, and the company

does not undertake any obligation to update forward-looking statements should conditions or managements estimates or

opinions change. Forward-looking statements are subject to risks, uncertainties and other factors, including gold and

other commodity price volatility, political and operational risks, which are described in the companies 10K Form on file

with the SEC as well as the company's other regulatory filings.

Cautionary Note to U.S. Investors - The U.S. Securities and Exchange Commission permits U. S. mining companies, in

their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or

produce. We use certain terms in this presentation, such as measured, indicated, and inferred resources, which

the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. investorsare urged to consider closely the disclosure in our form 10-K which may be secured from us or the SEC website at: http://www.sec.gov/edgar.html

Summary

General Metals Corporation (OTCQB: GNMT.OB; Berlin: GMQ) -is a fully reporting, publicly listed and

traded, production oriented junior mining company headquartered in Reno, Nevada that is engaged in theevaluation, acquisition, exploration and operation of gold/silver projects in Nevada and North America. The

Companys "flagship" project is the Independence Gold Project, situated in the prolific Battle Mountain-Cortez gold belt of north central Nevada. General Metals holds 14 mining claims encompassing 240 acres with100% control of the leasehold interest, subject to a sliding scale royalty. The Company also owns 480 acres of

fee land near the Independence which can be used in heap leaching operations or as waste dumps.

Location - The Independence project is located in Lander County, Nevada, adjacent to Phoenix mine and

approximately 14 miles south of Battle Mountain, Nevada. The Companys14 unpatented lode mining claims

are all located on Bureau of Land Management administered public lands situated in Sections 28, 29, 32, and

33, Township 31 North, Range 43 East. The Companys 480 acres of private fee surface land with no mineral

rights included, is situated in Section 17, Township 30 North, Range 43 East, MDBM, Lander County, Nevada

in the Battle Mountain Mining District.

History- The Independence mine was in production intermittently from 1938 through 1987. Reported historicproduction by the various operators totaled 750,200 ounces silver and 11,029 ounces gold. The average

recovered grade of all recorded production was 0.17 and 11.53 ounces of gold and silver per ton respectively.

Exploration drilling on the property was first conducted by Union Pacific Minerals Division of the Union

Pacific Railroad (1973). Subsequent drilling campaigns were completed by APCO Oil Corporation (1974

1975), United Mining Corp. (1981 1985), Noranda Exploration (1984 1987), Battle Mountain Gold Corp.(1988), Lansdowne Minerals Inc. (1993 1994), Teck Corporation (1995 1996) and Great Basin Gold

Corporation (1997). In 2004 Gold Range LLC, a private Nevada acquired an option to lease the Independence

Property from Independence Gold and Silver Mines Company and subsequently acquired the leasehold

interest. Later in 2004, Gold Range negotiated an agreement with General Gold Corporation which resulted in

Gold Range assigning its interests to General Gold. General Gold was subsequently acquired by GeneralMetals Corporation.

Since acquiring the Independence Project, General Metals has drilled logged and modeled 40,000 feet of


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reverse circulation drilling in 131 drill holes in surface oxide mineralization. It has re-logged and re-assayed all

mineralized intercepts in deep core holes and modeled the Deep Skarn Target in detail for the first time. A total

of 8,000 fire assays analyzing 32 elements have also been completed.

In December 2010, a new management team, and a reconstituted Board of Directors, led by Daniel J. Forbush,took over the operation of the Company (see Management section below). During the subsequent threemonths the team raised over $500,000 in new capital, advanced project drilling and metallurgical work,

completed a substantial amount of baseline environmental analysis and started driving the Company tocomplete the preliminary feasibility study in connection with its next round of major financing. If these critical

tasks are completed according to schedule and with its financing in place, the Company projects gold

production could begin as early as 12-18 months from that point.

Geology The shallow near surface mineralization at the Independence Project is best characterized as a high

level epithermal system formed as a leakage halo above the deep Independence gold skarn, both related to

emplacement of Eocene age granodiorite porphyries. The Independence deep gold skarn target is a high grade,

gold rich skarn system developed in the carbonate rich portions of the Battle Mountain, Antler Peak and Edna

Mountain formations of the Roberts Antler Sequence in the lower portion of the Roberts Mountain Allocthon.The Independence Stock situated at the northern end of the Independence Property hosts stockwork style gold-silver mineralization and disseminated porphyry style gold-copper mineralization.

Area Gold Mines (see Independence Project Location map) - The Phoenix open pit gold and coppermine is located less than one mile east-northeast of the Independence project in Copper Canyon. Lithologically

and structurally-controlled Copper Canyon mineralization can be considered to be the low-grade halo

mineralization surrounding the Fortitude Mine, also located in Copper Canyon on the east boarder of the

Independence Property. Phoenix mine reserves in 2010 contained an estimated 6.0M ounces gold. The now

depleted Fortitude deposit is situated approximately 4,000 feet north-northeast of the Independence and

consisted of the Upper and Lower Fortitude deposits, discovered in 1981 and mined until 1993 by Battle

Mountain Gold. Fortitude contained combined production of 2.2 million ounces of gold and 9.7 million ounces

of silver. More than 90% of the Fortitude mineralization was contained in the Antler sequence which consistsof the Edna Mountain, Antler Peak, and Battle Mountain Formations in the Roberts Mountains Allocthon. The

Fortitude Mine is considered one the more lucrative mines ever operated in Nevada. The Sunshine deposit islocated almost due North of the Independence Project. It was mined by Battle Mountain Gold in 1995 and

1996 and produced 32,000 ounces of oxide gold which was treated by heap leaching. Sunshine mineralization

was hosted in cherts of the Havalla / Pumpernickel Formation of the Golconda Allocthon, and portions of theIndependence Stock along its northern margin.


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The Independence Mineralized Zone In June 2011, the Company received a revised Canadian National

Instrument 43-101 mine technical report that defines the Measured, Indicated and Inferred gold/silver ore

resources at the Independence Project. The report incorporates all of the analytical, sampling, drilling and

metallurgical work completed at the property up to that date by General Metals and prior operators. While it

incorporates input from management, the 43-101 is an independently authored document prepared by aQualified Person(s) that meets rigorous standards for mineral resource classification. It stands as the bestestimate to this point of the gold/silver production potential of the Independence and it is a pre-requisite for alisting of the Companys shares on a Canadian Stock Exchange.

The Report describes two primary potential ore producing zones at the site the Independence Shallow

Target and the Deep Skarn Target. The Measured, Indicated and Inferred gold/silver tonnages identified

come from these targets. The Report also notes three additional important potential resource areas the HillZone (directly adjacent to The Independence Shallow Target), the North Target/Independence Stock and an

additional deep ore target halo lying above and below the Deep Skarn Target. These areas are described in the

following material.

Independence Shallow Target: The geometry of the Independence Shallow Target is a large westdipping tabular body with excellent continuity along strike and down dip, which appears to be

amenable to open pit mining and, due to its thoroughly oxidized nature, also appears to be amenableto low cost heap leaching. This mineralized zone has been defined over a width of up to 400 feet, and


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for a distance of more than 3000 feet on strike. Mineralization remains open on strike to the north,

and to depth. The mineralization is oxidized to depths of 300 to 400 feet below the surface after

which a narrow zone of mixed oxide sulfide rapidly give way to unoxidized, sulfide rich primary

mineralization. Recent metallurgical test work completed by McClelland Laboratories of Sparks

Nevada, indicates the Independence near surface mineralization will be amenable to cost efficient,heap leach technology. One 1.9 ton column test on this ore yielded 91.45 % extraction of gold onmaterial crushed to 80% passing 4 inches. By comparison it is common for many heap leach mines to

crush ores to one inch or smaller and to only achieve 70% to 75% extraction of the contained gold.Record gold and silver prices of over $1,600 and $30 per ounce respectively encourage rapid

development of the Independence Mine. The resource estimates below are based on historic drilling

and the Company's 84 drill holes completed during its 2007- 2008 drill program.

Independence Shallow Surface Oxide Target:

Measured & Indicated 223,300, oz. gold, 3,784,400 oz. silver

Inferred: 46,400 oz gold; 211,200 oz. silver

Deep Skarn Target: General Metals believes the surface mineralization identified above on theproperty has its roots in the gold skarn below the Golconda Thrust approximately 3,000 feet belowthe surface. This target is hosted in fractured skarn altered sediments of the Antler Peak, EdnaMountain and Battle Mountain Formations, the same rocks that host the historic Fortitude Deposit

and much of the mineralization at the present and past producing mines in the Battle Mountainmineral complex. Thin and polished sections of ore show gold occurs as the last mineral phase as

minute grains of free gold deposited on micro fractures independent of pre-existing mineral species.

More than 25,000 feet of historic core has been re-logged and original pulps from Noranda

Exploration and Great Basin Gold were re-analyzed with using modern "best practices" with Certified

Reference Materials (CRM's), duplicates and blanks.Gold mineralization in the deep skarn has beenencountered in drill holes over an area more than 1,400 feet wide and 3,400 feet long which occurs as

sub horizontal blankets that have been locally modified by post mineral faulting. The majority of the

skarn target is roughly 2,800 to 2,900 feet beneath the surface, except along the eastern margin of theproperty where faulting displaces the receptive horizon to roughly 2,600 feet beneath the surface. The

mineralized zones range from five to twenty feet thick with typically shallow dips, rarely up to 30degrees westerly and southwesterly. The relatively good geologic continuity of the deep skarn deposit

in conjunction with the limited number of drill holes allows for only an inferred resource

classification.

Deep Skarn Target:

Inferred Resource: 796,200 oz. gold

Resource Summary The following table summarizes the Measured, Indicated and Inferred

gold/silver resources at the property as defined in the 43-101 report. These estimates form the basisfor the preliminary economic analysis presented later in this plan.


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Independence Gold and Silver Resources

Shallow DepositResource

NameMeasured

TonsAveGrade

(opt)

ContainedOunces

IndicatedTons

AveGrade(opt)

ContainedOunces

MeasuredIndicated

Tons

AveGrade(opt)

ContainedOunces

GoldResource 8,328,000 .015 128,200 7,728,000 0.012 95,000 16,056,000 0.014 223,300

SilverResource 8,328,000 0.296 2 ,466,900 7,728,000 0.170 1,317,500 16,056,000 0.236 3,78 4,400

GoldEquivalentResource8,328,000 0.024 198,800 7 ,728,000 0.017 132,800 16,056 ,000 0.021 331,600

Note: Cutoff grade is 0.008 opt Aueq. The silver to gold ratio is 35:1 or the equivalent of a $1100/oz gold price and a $31.00/oz silver

price.

Shallow DepositResource

NameInferred

TonsAveGrade

(opt)

ContainedOunces

Gold Resource 4,592,000 .010 46,400Silver Resource 4,592,000 0.046 211,200

Gold Equivalent Resource 4,592,000 0.011 52,400

Deep Skarn Deposit

ResourceName

InferredTons

AveGrade(opt)

ContainedOunces

Deep Skarn Deposit 4,182,000 0.190 796,200The terms Measured, Indicated and Inferred, as they apply to the Independence Projects

resources are defined as follows by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM):A Measured Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities,

shape, and physical characteristics are so well established that they can be estimated with confidence sufficient to allow

the appropriate application of technical and economic parameters, to support production planning and evaluation of

the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing

information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and

drill holes that are spaced closely enough to confirm both geological and grade continuity.

An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities,

shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriateapplication of technical and economic parameters, to support mine planning and evaluation of the economic viability of

the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through

appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely

enough for geological and grade continuity to be reasonably assumed.

An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality can be

estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological

and grade continuity. The estimate is based on limited information and sampling gathered through appropriate

techniques from locations such as outcrops, trenches, pits, workings and drill holes.


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Additional Project Targets

Hill Zone The Hill Zone was discovered as a part of the ongoing integration of drill and analytical

data with the historic geologic, geochemical and mining data. Historically, mineralization at the

Independence mine was believed to be terminated to the north by the Canyon fault. Interpretation ofGeneral Metals drilling in the Independence target and historic gold-silver surface sampling dataindicated the offset of the Canyon fault to be minimal and projected the favorable hosts and the

mineralized zone to continue north of the Canyon Fault. At the Hill Zone, gold soil anomalies aremuch higher and more continuous than at the Independence Shallow Target. This may be due to a

shallow source of mineralized material, a higher grade source, or both. These anomalies suggest the

gold zone widens to the north into an area that is open for additional discovery. The Company has

recently completed an additional 44 drill holes to increase drill hole density in the Hill Zone. Drilling

results to date in the Hill Zone intersected very large, continuously mineralized zones of surface and

near surface, oxidized gold mineralization up to 445 feet (135 meters) in width within the potential

open pit, heap leach target. The large intercepts reported are hosted in favorable sedimentary rocks,

east of structurally controlled high grade oxidized mineralization in "feeder structures". These

feeder structures (faults or breaks in the rocks which increase porosity, permeability andreceptivity), are identified in holes GM-127 and GM-128. GM-127 contained an interval whichassayed 0.908 opt Au and 0.36 opt Ag over 10 feet with an individual high of 1.586 opt Au over 5feet and GM-128 which contained 1.019 opt Au and 0.99 Ag opt over 15 feet, and an individual high

sample of 2.897 opt Au over five feet. The intercept in GM-128 is believed to represent a high gradefluid conduit or a potential high grade mineralized zone similar to those mined historically from the

Independence Mine.

North Target/Independence Stock - The Independence Stock, situated at the northern end of the

Independence Property hosts stockwork style gold-silver mineralization. A small pit, just north of the

Property, contains disseminated porphyry style gold-copper mineralization along the north margin of

the Independence Stock. The main structural feature evident at the surface on the property is the

Wilson Independence fault Stock-work. Possible porphyry style mineralization occurs in the Eoceneage Independence Stock at the north end of the Independence property. On the Independence

Property, quartz stockwork mineralization occurs at the surface and in drill intercepts. In the Sunshinepit contiguous with the north boundary of the property, porphyry style gold copper mineralization was

mined from the Independence Stock.Limited drilling in the Independence Stock has returned up to 90

foot intercepts which grade 0.016 opt Au

Deep Target Halo - Additional potential exists in high angle, structurally controlled mineralization

halos both above and below the Deep Skarn Target. The potential below the Deep Skarn is

substantially verified by Great Basin Golds drill hole WI-001 which intersected five feet assaying

2.19 opt Au in the Harmony formation below the Roberts Mountains Thrust. Empirical evidence

suggests that there are likely to be as yet undiscovered high angle structures which acted as conduitsthrough which mineralizing fluids rose from the Deep Skarn and formed the Independence ShallowDeposit. Due to their potential inclusion as additional resources, the highest priority of theIndependence drilling program is clearly the extension of the Independence Shallow mineralization

and development of additional near surface oxide mineralization in the intrusive hosted stock work

and porphyry mineralization of the Independence Stock. Due to its high-grade, the Independence

Deep Skarn Target and its attendant halo warrants special future consideration.


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Exploration, Development and Production Plan- Independence Project

Exploration, Development and Production Plan

The Companys primary focus now is on completing the necessary work and studies and to gain the permits

and approvals to place the Independence Shallow Target into production. To reach this objective the Company

needs to complete the following key tasks:

Exploration- General Metals will complete sufficient reverse circulation (RC) drilling to fully define

the extent of mineralization in the Hill Zone and other nearby areas so that the mineralization in thesezones can be classified as measured and indicated resources. As part of this program a number of HQ

or larger diameter, shallow core holes will be completed as twins to existing RC holes and in areas

where metallurgical samples are needed. The Company will also expend drilling funds on the Deep

Skarn target because of its untested higher grade potential. Additional potential exists in the high

angle, structurally controlled mineralization halo both above and below the Independence Deep Skarntarget.

Environmental and Permitting A substantial portion of the baseline environmental studies has

been completed at the property. This includes bat surveys, endangered plant and animal studies and

portions of the cultural resource study, water pollution control and mine reclamation. The overall Plan

of Operations that will be submitted to the BLM is nearly finished. The Company anticipates having

to complete an Environmental Assessment as part of the process to gain a mining permit. The overallschedule for completing the environmental studies and gaining final permit approval is shown below.


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Feasibility Study and Project Construction General Metals anticipates completing its Preliminary

Economic Analysis of the project by fourth fiscal quarter 2012 (Feb.12 Jan.13). At that point a

wide range of financing options become available to the Company, including a listing of the stock on

a major exchange, gold loans or sale of mineral royalty interests, among other options. The Company

intends to raise approximately $13 million which will be used to complete permitting and projectconstruction and to put the mine into production. The estimated schedule for accomplishing thesetasks is set forth below. The first leach solution application is targeted to occur in the _4 th fiscal

quarter 2013, as the following chart illustrates:

Production Plan General Metals projects that, if the projected schedules are met, initial goldshipments can begin in mid-2013. In calculating gold and silver production the Company has used the

resource calculations shown in the 43-101 report shown above in conjunction with preliminary pitoptimization estimates done by Mine Development Assoc., Inc.

The Company has assumed that metallurgical recoveries will average 70% for gold and 30% for

silver (the overall laboratory cyanide-soluble/fire-assay test data indicated that across all samples an

average of approximately 86% of the gold and 65% of the silver in the pulverized drill-sample pulps

analyzed was extracted).

Company Financing The Company intends to raise capital in three tranches. The first funding is

for approximately $$2.0 million and will be used to complete additional drilling and metallurgicalwork and a pre-feasibility analysis. The second round of funding is anticipated to be for $3.0 million

which will be used to complete all permitting, gain approval from the BLM for the Plan of Operationsand complete a full mine economic feasibility analysis. The final tranche, approximately $15 million

will be used to commence on-site operations, waste removal, leach pad construction and to begin gold

production.


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Management

Daniel J Forbush, President, CEO and CFO is a Certified Public Accountant, with over 25 years of mining

industry experience at Fortune 500 firms including Glamis Gold, Ltd., AMOCO, TENNECO and Arthur

Andersen & Company. He served as Chief Financial Officer and Treasurer for Glamis Gold, Ltd., directing allaspects of financial, administrative and operations management for this $200MM NYSE-listed, multi-nationalcorporation.

Walter A. Marting, Jr. has spent a large part of his career both as a senior executive for a Fortune 500mining company and starting and running his own junior gold mining company. After graduating from

Harvard Business School in 1975 and following three years in the US Navy with SEAL Team Two, Mr.

Marting joined Amax Inc. as an underground mine Production Supervisor at Amaxs Climax Molybdenum

property in Leadville, Colorado. Mr. Marting spent two years working underground and in Climaxs open pitoperation before moving to the Companys headquarters in Greenwich, CT. In 1982 Mr. Marting was named

Vice President Finance for Amax Europe in Paris, France. Mr. Marting helped build Amaxs global mining

presence from its Paris headquarters and had financial oversight of the companys European and Africanexploration and development and ore processing activities. He left Amax in 1984 to start his own mining

company that undertook the re-opening and operation of the famed 16-1 Mine in Allegheny, CA.

P.K. "Rana" Medhi of Casa Grande, Arizona has over 40 years of experience in the mining industry,

including 28 years with Cyprus Amax Minerals. Mr. Medhi holds a Master of Science degree from the

University of Arizona and is a Registered Mining and Engineering Geologist working as an Independent

Consultant. In addition, Mr. Medhi is a Certified Professional Geologist with the American Institute of

Professional Geologists, a Member of Society for Mining, Metallurgy and Exploration (SME) and a certifiedadjunct professor of mineral technology and geology with the community colleges of Arizona. Mr. Medhi has

also authored and published several technical papers and an occasional speaker to mining and public forums.

Mr. Mehdi is currently the Chairman of the Board of Sunergy, Inc., a junior mining company with activities in

West Africa. He was the Chairman of the Board of Governors of the Arizona Department of Mines andMineral Resources.

Larry Biglerhas over 30 years of mining experience. Mr. Bigler is a practicing Certified Public Accountant

with many mining clients. Mr. Bigler formerly was CFO, Vice President, and Director for Oro Nevada

Resources and was instrumental in raising C$ 40 million from an initial public offering. From 1987 until 1992

he was Treasurer and Controller for Getchell Gold where he completed an initial public offering and a goldloan. He has degrees in economics and accounting and has published many articles on mining financial issues.

Shane K. Dyer, P.E., W.R.S. of Reno, NV is a Registered Professional Engineer and a Registered WaterRights Surveyor, with over 10 years experience in the Engineering Consulting Industry specifically in the

design and permitting of mining operations including leach pad and waste dump designs, water resource

engineering and business management. Currently he serves Vice President at Dyer Engineering Consultants,

Inc. a firm with a track record of producing excellent design, and project management results for clients in the

United States and internationally, Mr. Dyer holds a Masters Degree in Civil Engineering with a minor in

Business Management from Brigham Young University. He serves as the Director of Permitting and Finance

at Key Medical, Inc. a National Medicare Accredited DMPOS. Mr. Dyer has a strong technical background

and is innovative in problem solving and design.

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