Asian Mineral Resources Limited

Asian Mineral Resources Limited

October 11, 2007 17:28 ET

Asian Mineral Resources Limited Announces Private Placement

TORONTO, ONTARIO--(Marketwire - Oct. 11, 2007) - Asian Mineral Resources Limited ("AMR" or the "Company") (TSX VENTURE:ASN) announced today that it has agreed to sell 7,000,000 units consisting of one common share and one-half a warrant ("Warrant") to purchase a common share for Cdn$2.50 for two years at Cdn$1.75 a unit, for gross proceeds of Cdn$12.3 million. The purchaser is associated with the Santa Elena Group which owns an extensive portfolio of investments in a broad range of international resource properties.

Of the 7,000,000 units, one-third will be sold for gross proceeds of approximately Cdn$4.1 million following TSX-V approval and two-thirds will be sold for gross proceeds of Cdn$8.2 million on the earlier of (i) the issue of a mining license to AMR's 90% owned Ban Phuc Nickel Mines Limited ("BPNM") not later than December 31, 2007 and (ii) the election by the subscriber to pay the subscription price and be issued the securities, whether or not the mining license has been issued.

Mr. Rob Thomson, President and CEO of AMR, commented that: "The discussions we had recently with our largest shareholder, Vietnam Resource Investment (Holdings) Limited ("VRI"), that were terminated abruptly by them included an offer by VRI to subscribe for a US$10 million convertible note, the proceeds of which would have been sufficient to fund a substantial portion of our Ban Phuc commitments until the expected issue of a mining license. That offer was effectively withdrawn by VRI's surprise announcement that they had lost confidence in our board, but, fortunately, we were able to take advantage of a previous offer of financing that was still available to us. We are evaluating other sources of additional funding to ensure that AMR can continue to provide BPNM with the funds it requires to satisfy its commitments and obligations."

Company Profile:

Asian Mineral Resources Limited is currently engaged in the exploration and development of the Vietnamese located Ban Phuc Nickel Project in which it currently has a 90% interest. The Project is part of a granted Foreign Investment License covering 150 square kilometres of highly prospective ultramafic hosted nickel occurrences.

For further details on the Company and the Ban Phuc Nickel Project please refer to the website at

Forward-Looking Statements

This press release includes certain "Forward-Looking Statements." All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of Asian Mineral Resources Limited are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Asian Mineral Resources Limited's expectations are disclosed under the heading "Risk Factors" and elsewhere in Asian Mineral Resources Limited documents filed from time-to-time with the TSX Venture Exchange and other regulatory authorities.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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