2011 News Releases

Confederation Minerals Closes $10 Million Private Placement Financing

CONFEDERATION MINERALS LTD. (“the Company") (TSX.V:CFM) is pleased  to announce the completion  of  the brokered  private  placement  (the “Offering") previously  announced  on  February  10, 2011, with a syndicate of underwriters  co-led by Cormark  Securities Inc. and Fraser Mackenzie Limited and including Casimir Capital Ltd. (collectively, the "Underwriters'').

Upon closing of the Offering, 2,500,000 "flow-through" common shares ("Flow-Through Common Shares'') were issued at a price of $0.80 per share and 12,997,500 units (''Units'') were issued at a price of $0.67 per Unit, with each Unit consisting of one common share (a "Common Share'') and one-half of one common share purchase warrant (each whole warrant, a "Warrant''), for gross proceeds to the Company of $10,708,325. Each Warrant entitles the holder thereof to purchase one Common Share at an exercise price of $1.00 per Common Share until July 3, 2012.

A cash commission equal to 6% of the gross proceeds of the Offering was paid to the Underwriters. In addition, the Underwriters were issued broker warrants equal to 6% of the number of Units issued pursuant to the Offering. Each broker warrant entitles the holder thereof to purchase one Common Share at an exercise price of $0.67 per Common Share until July 3, 2012.

All securities issued in connection with the Offering are subject to a four-month hold period, expiring July 4, 2011.

Proceeds from the sale of the Units will be used to fund the Company's capital program and for general corporate purposes and the gross proceeds from the sale of the Flow-Through Common Shares will be used to fund ongoing exploration activities eligible for Canadian Exploration Expenses which will be renounced in favor of the subscribers of the Flow-Through Common Shares effective on or before December 31, 2011.

FOR FURTHER INFORMATION PLEASE CONTACT: Lawrence Dick
Director, President and Chief Executive Officer
Confederation  Minerals Ltd.
Suite 1980, 1075 West Georgia Street
Vancouver, B.C.
604.688.9588
This email address is being protected from spambots. You need JavaScript enabled to view it.
www.confederationmineralsltd.com

 

Forward-Looking Statements
This news release contains certain statements that may be deemed ''forward-looking statements". All statements in this release, other than statements of historical facts, that address exploration activities and events or developments that Confederation Minerals Ltd. expects to occur, are forward-looking statements. Forward-looking statements 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.  Forward-looking statements  in  this  document  include  statements  with  respect  to  anticipated  expenditures  on  the exploration and development of the Company's exploration programs.

Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of foture 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 uncertainty with respect to findings under exploration programs and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of foture 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. 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. These  statements  are  based  on  a  number  of  assumptions,  including,  among  others,  assumptions regarding general business and  economic conditions and  the ability of management to  successfully implement  the planned  exploration. The  foregoing  list of  assumptions is  not  exhaustive. Events  or circumstances could cause results to differ materially.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF TillS RELEASE.