Continental Minerals Corporation
TSX VENTURE : KMK
OTC Bulletin Board : KMKCF

Continental Minerals Corporation

January 30, 2007 09:30 ET

Continental Arranges Cdn$20 Million Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 30, 2007) - Gerald S. Panneton, President and CEO of Continental Minerals Corporation (TSX VENTURE:KMK)(OTCBB:KMKCF), announces that Continental has reached agreements in principle to privately place approximately 12.1 million units in its capital at a price of Cdn$1.65 per equity unit for gross proceeds of Cdn$20 million to a number of accredited investors. Each unit consists of one common share and one common share purchase warrant exercisable to purchase an additional common share at a price of Cdn$1.80 for a one year period from completion of the financing. The warrants are subject to accelerated expiration which can be triggered at the election of Continental on 30 days notice if Continental's common shares trade at a price of $Cdn2.25 for any ten consecutive day period after the four month hold period has expired. The financing is currently subject to execution of definitive agreements and TSX Venture Exchange acceptance, both of which are expected in the ordinary course. The securities will be subject to a four month hold period in the principal Canadian jurisdictions.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration requirements is available.

Proceeds from the placement will be used to fund the completion of the Xietongmen feasibility study, completion of the Environmental Impact Assessment (EIA) and the 10,000 meter exploration drill program to define the size of the exciting Newtongmen discovery previously announced (November 28, 2006) and for general working capital.

Gerald Panneton, President & CEO

Continental Minerals Corporation

No regulatory authority has approved or disapproved the information contained in this news release.

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 the merger, acquisition of additional property, exploration drilling, exploitation activities and events or developments that the companies expect are forward-looking statements. Although the companies believe the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause 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.

For more information on Continental Minerals Corporation, Investors should review Continental's annual Form 20-F and the Form F-4 filings with the United States Securities and Exchange Commission at www.sec.gov and its home jurisdiction filings that are available at www.sedar.com.

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

Contact Information

  • Continental Minerals Corporation
    Shawn Wallace
    Investor Services
    (604) 684-6365 or Toll Free: 1-800-667-2114
    (604) 684-8092 (FAX)
    Website: www.continentalminerals.com