Medallion Resources Ltd.

Medallion Resources Ltd.

January 22, 2010 15:37 ET

Medallion Closes $376,250 Private-Placement Unit Offering

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 22, 2010) - Medallion Resources Ltd. ("Medallion" or the "Company") (TSX VENTURE:MDL) today announced it closed on January 20, 2010 (the "Unit-Offering Closing Date"), its private placement unit offering (the "Unit Offering"), originally announced in the Company's news releases of December 15 & 23, 2009, for gross proceeds of $376,250. A total of 2.15 million units (a "Unit") were sold at $0.175 per Unit. Each Unit consists of one of the Company's common shares and one transferable common-share purchase warrant (a "Warrant"). Each Warrant is exercisable to acquire one common share at an exercise price of $0.30 until January 20, 2012. Medallion paid cash finders' fees totalling $18,147.49 representing 9% of the gross proceeds raised from purchasers introduced to the Company by certain finders at arm's length to the Company. The Company also granted an eligible finder 51,428 finders' warrants equal to 9% of the Units sold to a purchaser. Each finders' warrant shall be exercisable to acquire one common share at an exercise price of $0.225 per share until January 20, 2012.

Pursuant to securities legislation and policies of the TSX Venture Exchange (the "Exchange"), the Unit Offering is subject to final Exchange approval and all securities issued to purchasers and finders under the Unit Offering will be subject to a four-month hold period from the Unit-Offering Closing Date, ending May 21, 2010.

Medallion also recently closed a private-placement Flow-Through Offering, which raised gross proceeds of $361,625 (Company news release of January 4, 2010). The gross total proceeds raised from the two offerings are $737,875. The proceeds of the Unit Offering and Flow-Through Offering will be used for exploration of the Company's Eden REE Project, acquisition of new properties and working capital.

Medallion focuses on exploration for rare-earth elements (REE's), lithium and other metals required by the new energy-saving technologies. The Company's first project, announced Dec 1, 2009, is the Eden REE project in Western Manitoba.


William H Bird, PhD, PGeo, President & CEO

Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future exploration and financing plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in these statements. Such risks include expectations that may be raised by discussing potential acquisitions. Also, in order to proceed with the Company's exploration plans, additional funding is necessary and, depending on market conditions, this funding may not be forthcoming on a schedule or on terms that facilitate the Company's plans.

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.

Contact Information