|May 22, 2007|
Playfair Announces Private Placement With The Mineralfields Group
|News Release 2007-9|
Playfair Mining is pleased to announce that the company has arranged a private placement with one of Canada's premier mining funds, the MineralFields Group of Toronto, Ontario. This institutional non-brokered private placement will consist of the issuance of 5,000,000 flow-through shares of Playfair Mining at $0.60 per share for a total of CDN $3,000,000. Proceeds of this financing will be used to advance Playfair's Canadian tungsten properties including the Risby and Grey River tungsten deposits.
In connection with private placement, Playfair Mining has agreed to pay a cash finders' fee to First Canadian Securities® of 5% of the proceeds raised and 500,000 non-flow-through finder's warrants equal to 10% of the shares subscribed for at an exercise price of $0.60 for a term of 24 months. All of the securities issued pursuant to this offering will have a hold period expiring four months after the closing date. Completion of this flow-through private placement is subject to the delivery of definitive subscription agreements and TSX Venture Exchange acceptance.
About MineralFields, Pathway and First Canadian Securities ®
MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar resource limited partnerships to investors throughout the world.
Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds. Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities®, a division of Limited Market Dealer Inc., is active in leading resource financings (both flow-through and hard dollar)on competitive, effective and service-friendly terms, with investors both within, and outside of MineralFields Group.
About Playfair Mining Ltd.
Playfair Mining owns four high-grade and advanced stage tungsten deposits* in Canada. These deposits, all of which have deposits that pre-date NI 43-101and are therefore non-compliant; Grey River (Newfoundland) which has a total of 10 million pounds of contained tungsten (473,000 tonnes of 0.97% W03), Risby (Yukon) which has a total of 48.2 million historical pounds of contained tungsten (2,700,000 tonnes of 0.81% W03), Lened (NWT) which has 18.5 million historical pounds of contained tungsten (737,000 tonnes of 1.14% W03), and Clea (NWT) which has 5.3 million historical pounds of contained tungsten (257,000 tonnes of 0.93% W03). In addition to these high-grade and advanced stage tungsten projects, Playfair also owns a highly prospective exploration property, Granite Lake.
Playfair's Canadian Tungsten Deposits
*Estimates of tungsten resources are historical in nature, predate and are noncompliant with NI 43-101. Playfair is not treating the historical estimates as current mineral resources or reserves. Playfair has not undertaken any independent investigation of the resource estimates nor has it independently analyzed the results of the previous exploration work in order to verify the resources, and therefore the historical estimates should not be relied upon. However, Playfair believes that these historical estimates provide a conceptual indication of the potential of the occurrences and are relevant to ongoing exploration
Tungsten is an extremely hard, heavy, steel-grey to white metal that is remarkable for its robust physical properties and vast uses and cannot be substituted in many industrial applications. Tungsten has the highest melting point of all metallic elements. Tungsten is a strategic metal and emerging economies such as India and China are consuming increasing amounts of tungsten. Until 2005, China was the world's largest exporter of tungsten concentrate but rapid industrialization within China, structural economic changes, and changes in economic policies towards industry have resulted in the restriction of tungsten exports from China. China is now the world's largest consumer of tungsten. Escalating Chinese consumption, in conjunction with the ongoing demand in the world's principal economies along with the supply issues noted above, has resulted in increases in the price of tungsten. Tungsten prices are quoted per Metric Ton Unit of contained tungsten trioxide (WO3). One MTU contains 10 kilograms of WO3 and is the standard weight measure of the tungsten trade. Ammonium Paratungstate ("APT") is an intermediate product in the production of tungsten metal for which prices are available. A price of US$260 per MTU equates to US $26 per Kilogram or US $12 per pound.
Mr. Michael Moore, P. Geo is the qualified person who has reviewed the technical information contained in this release on behalf of Playfair.
Visit our website at www.playfairmining.com for more information.
ON BEHALF OF THE BOARD
"D. Neil Briggs"
D. Neil Briggs
President and Director
No Stock Exchange has Approved or Disapproved the Information Contained Herein. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.