Metallica Resources Announces Second Quarter 2007 Financial Results and Recent Corporate Developments

Metallica Resources Inc. (TSX: MR)(AMEX: MRB) is pleased to report its second quarter 2007 financial results and corporate developments for the second quarter to date. Complete quarterly results will also be available on SEDAR, EDGAR and on the Company's website at www.metal-res.com . All dollar values are in U.S. currency unless otherwise stated.

Highlights:

- The Cerro San Pedro project produced its first gold-silver dore in April 2007. Commercial production officially commenced May 1, 2007.

- Gold and silver sales in the second quarter totaled $1.8 million and $0.7 million, respectively. The Company sold 2,765 ounces of gold and 53,881 ounces of silver at an average realized price per ounce of $655.82 and $13.32, respectively.

- Gold production in July totaled 2,083 ounces of gold and 37,160 ounces of silver, which is on target with our ramp-up plan.

- Ore production at Cerro San Pedro is currently meeting daily budgetary expectations but is approximately five weeks behind the year-do-date schedule due to delays in haul road construction and bench development.

- As of August 1, 2007, approximately 2.7 million tonnes of ore have been placed on the leach pad at Cerro San Pedro. This predominantly limestone ore contains an estimated 52,750 ounces gold and 2.8 million ounces of silver. Because most of the ore has been leaching less than 60 days, it is too early to determine overall recovery.

- In late June the Company retained a local company to provide mining equipment for the Cerro San Pedro project, replacing the contract with Washington Group Latin America. Negotiations are underway for a long-term agreement to lease or purchase the required equipment or to secure a contract mining arrangement. The existing agreement is renewable through March 2008.

- Cerro San Pedro processing activities continue according to plan. The Merrill-Crowe plant, currently operating at 50% capacity, is expected to achieve full production levels by the end of 2007.

- Construction at the Cerro San Pedro project was substantially completed in April but construction of the second and third cells of the leach pad has been delayed due to the exceptionally heavy rainfall affecting the entire Gulf Coast region. This has necessitated over-stacking of ore on cell one, a practice that is expected to impact near-term recoveries. Cells two and three are now scheduled for completion in the third and fourth quarters of 2007, respectively.

- The bulk sampling and 7,900-meter drilling programs undertaken by joint venture partner, Xstrata Plc. ("Xstrata"), at the Company's 30%-owned El Morro project in Chile have been delayed due to high amounts of snowfall and extreme winter weather conditions at the project site during July. Efforts are underway to clear snow and resume bulk sampling and drilling programs to full production by mid-August.

- A 3,268-meter drilling program has been completed at the Company's 100%-owned Rio Figueroa copper-gold project in Chile. Results include 104 meters averaging 0.39% copper and 0.26 g/t gold from 358 to 462 meters depth in hole MDH-4, and 190 meters averaging 0.37% copper and 0.21 g/t gold from 254 to 444 meters depth in hole MDH-8. Surface trenching and sampling are in progress in preparation for another round of drilling planned for late 2007 or early 2008.

- An exploration option agreement was signed in July to acquire the Liberty Bell gold project located in the Tintina Gold Belt in central Alaska. The agreement stipulates the Company will invest $2.0 million in exploration expenditures and deliver a feasibility study by the end of 2011, or incur additional exploration expenditures totaling $5.5 million and deliver a feasibility study by the end of 2015.

- The Company concludes the second quarter of 2007 with a strong balance sheet. As of June 30, 2007, the Company had $27.6 million in cash and no debt.