|February 28, 2012|
|Playfair Mining Ltd. (TSX.V Symbol - "PLY"), and its Board of Directors are pleased to announce that the Company has initiated a non-brokered Private Placement of up to 20,000,000 common shares for gross proceeds of up to $1,000,000 subject to TSX Venture Exchange approval. Each share will be priced at $0.05 cents. A finder's fee may be paid. The Company plans to utilize the proceeds of this financing for general working capital purposes, and ongoing development of the company's Grey River Tungsten Deposit.|
Playfair is a tungsten exploration and development company. The company has identified and continues to develop a portfolio of Tungsten deposits, in 4 locations across Canada. Playfair's extensive Tungsten asset base includes inferred resources of more than 4.7 million MTUs (in excess of 100 million lbs). The company's Grey River Deposit located near the fishing village of Grey River, Newfoundland, represents the most advanced stage deposit of the four and therefore is being advanced towards production. An updated independent mineral resource estimate was recently completed on Grey River by Desautels Geoscience Ltd. ("DGL") which complies with National Instrument 43-101 ("NI 43-101") Standards of Disclosure for Mineral Projects. Results from the updated resource estimate indicate 1.2 million tonnes of Inferred mineralization grading 0.730% WO3 containing 18.8 million pounds of tungsten trioxide or 853,000 metric tonne units (MTU). The company has also retained Golder Associates Ltd. to complete an updated Preliminary Economic Assessment ("PEA") incorporating the increased size of the Tungsten Resource as well as Stantec Consulting Limited to advance environmental and permitting work related to the Grey River property and SGS Minerals Services UK Ltd. to complete metallurgical testing to a pilot plant scale.
In addition to rapidly advancing the Grey River project on the ground, Playfair has also been active corporately and is in discussions with several end users of tungsten regarding production potential, financing opportunities and off-take agreements.
Growing shortfalls between global supply and demand have recently driven the Tungsten price to an all-time high of $485.00 / MTU (approx. $22.07/LB) in mid-June 2011. The current price of tungsten is approximately US $19.85 per pound.
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 by 70% over the last two years. Tungsten prices are quoted per Metric Tonne 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 $437.50 per MTU equates to US $43.75 per Kilogram or US $19.85 per pound.
Due to these Chinese export restrictions and the strong global demand for tungsten, the management of Playfair feels that the company is very well positioned with four high-grade deposits, all located within Canada.
Michael Moore, PGeo, is the qualified person who has reviewed the technical information contained in this news release on behalf of the company.
Visit our website at www.playfairmining.com for an internet link to the spot Tungsten price and for more information on Playfair's Tungsten properties.
ON BEHALF OF THE BOARD
"D. N. Briggs"
D. Neil Briggs, Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements: This Playfair Mining Ltd. news release may contain certain "forward-looking" statements and information relating to Playfair which are based on the beliefs of Playfair management, as well as assumptions made by and information currently available to Playfair management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events. Information concerning mineral resource estimates also may be deemed to be forward-looking statements in that it reflects a prediction of the mineralization that would be encountered if a mineral deposit were developed and mined. Should any one or more of these risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein.