2010 News Releases

Confederation Minerals Ltd Announces it has arranged a Private Placement in the Capital of the Company

CONFEDERATION MINERALS LTD. (TSX VENTURE: CFM.V) (www.confederationmineralsltd.com) (“the Company”) is pleased to announce that it has arranged a private placement in the capital of the Company (the “Offering”) of up to 1,428,571 flow through units (the “FT Units”) at a price of $0.35 per FT Unit and up to 5,357,142 non flow through units (the “NFT Units”) at a price of $0.28 per NFT Unit for aggregate gross proceeds of up to $2,000,000. Each FT Unit will consist of one common share in the capital of the Company (a “Share”), which will be designated as a flow-through share pursuant to the Income Tax Act (Canada), and one Share Purchase Warrant (a “Warrant”). Each NFT Unit will consist of one Share and one Warrant. Each Warrant will entitle the holder to purchase one further non-flow through common share in the capital of the Company (a “Share”) at a price of $0.45 per Share for a period of one year from the closing of the Offering.

The Company may pay a finder’s fee on all or a portion of the Offering within the maximum amount permitted by the policies of the TSX Venture Exchange.

Closing of the Offering is subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals, including approval of the TSX Venture Exchange. All securities issued in connection with the Offering will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation.

The proceeds from the Offering will be used to fund exploration programs on the Company's Newman Todd gold prospect in the Red Lake gold camp and for general working capital and corporate purposes.
Regarding the Offering, Company President Lawrence Dick commented: “This funding will permit us to commence drilling almost immediately on one of the most prospective gold prospects I have observed in the northern Canadian Archean gold terrain. The property has been systematically explored along a 2km-long structural corridor and at least 3 zones of high-grade gold mineralization have been identified. Confederation’s drill program at the Newman Todd prospect will represent the most thorough and comprehensive drill program carried out to date. In particular, drilling will target the depth and strike extension of known gold mineralization within the well-defined, gold-bearing structural corridor with the objective of demonstrating continuity between high-grade intersections drilled on the prospect to date. The Newman Todd prospect is situated in the highly-prospective Red Lake gold camp, with known mineralized intersections from previous drilling exhibiting many similarities to the famous Red Lake ores.


On behalf of the Board of Confederation Minerals Ltd.

Lawrence A. Dick, Ph.D., P.Geo, President and CEO

Contacts
Lawrence A. Dick, Ph.D., P.Geo
Confederation Minerals Ltd.
President and CEO
604 580 9402 (Tel)
604 588 2211 (Fax)
www.confederationmineralsltd.com


Forward-Looking Information
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and
exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.