TORONTO, ONTARIO--(Marketwire - June 19, 2007) - Metallica Resources, Inc. (TSX:MR)(AMEX:MRB) announced today that its subsidiary, Minera San Xavier, S.A. de C.V., a Mexican corporation ("MSX"), has terminated its mining contract with Washington Group Latin America, Inc. ("WGLA") under which WGLA had served as the mining contractor for MSX's Cerro San Pedro Mining Project in Mexico. The termination is effective June 19, 2007. MSX intends to continue to operate the Mining Project through one or more other contractors. However, it is likely that the termination of WGLA will have a short term negative impact on production levels at the Mining Project until the transition to a new contractor is completed.

Metallica Resources is a Canadian precious and base metal exploration and development company focused on the Americas. It currently has 92.2 million shares outstanding. As of March 31, 2007 it had approximately US$36 million in cash and cash equivalents with no debt. For further details on Metallica Resources, please visit the company's website at www.metal-res.com.

Information in this news release that is not current or historical factual information may constitute forward-looking information or statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Implicit in this information, particularly in respect of statements as to future operating results and economic performance of the Company, and resources and reserves at the Company's mineral projects, are assumptions regarding projected revenue and expense, gold, silver and copper prices, and mining costs. These assumptions, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual results are subject to a number of risks and uncertainties, including risks relating to general economic conditions and mining operations, and could differ materially from what is currently expected. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

FOR FURTHER INFORMATION PLEASE CONTACT:

Metallica Resources, Inc.
Richard J. Hall
President and CEO
(303) 796-0229, Ext. 304
Website: www.metal-res.com