Melkior Resources Inc.
TSX VENTURE : MKR

Melkior Resources Inc.

December 17, 2009 15:14 ET

Melkior Closes $6M Private Placement

OTTAWA, ONTARIO--(Marketwire - Dec. 17, 2009) -

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Melkior Resources Inc. (TSX VENTURE:MKR)("Melkior" or the "Company") is pleased to announce the second and final closing today of a private placement which brings the total gross proceeds raised to $6,059,502. This financing permits Melkior to substantially advance and deepen its drilling on its promising 100% owned West Timmins Carscallen Gold property which adjoins Lake Shore Gold Corp. A Carscallen budget of approximately $3 million is planned. Funds will also be made available to explore and drill its 100% owned East Rim Nickel property in the "Ring of Fire" in Northern Ontario. A budget of $1.5 million is planned for East Rim.

The second closing completed today is composed of : (i) 250,000 units (the "Units") at a price of $0.30 per Unit for gross proceeds of $75,000 and (ii) 303,000 flow-through common shares ("Flow-Through Shares") at a price of $0.33 per Flow-Through Shares for gross proceeds of $99,990 for total gross proceeds of $ 174,990 (collectively, the "Private Placement"). Each Unit is comprised of one Melkior common share ("Common Share") and one-half of one Common Share purchase warrant ("Warrant"). Each whole Warrant entitles its holder to purchase one additional Common Share at a price of $0.40 per Common Share from December 17, 2009 (the "Closing Date") to December 17, 2010 and at a price of $0.50 per Common Share from December 18, 2010 to December 17, 2011.

Pursuant to the Private Placement, the Company paid a cash commission to Blackmont Capital of $3,500. As well, Melkior paid total aggregate fees to M Partners Inc. and Investpro Securities Inc., co-lead agents for the brokered portion of the Private Placement (collectively the "Agent") comprised of (i) cash in the amount of $ $5,250, representing 7 % of the gross proceeds raised by the Agent under the brokered portion of the Private Placement, and 25,000 Common Share purchase warrants (the "Broker Warrants"), representing 10% of the number of Units issued under the brokered portion of the Private Placement. The Broker Warrants entitle its holder to purchase one additional Common Share at a price of $0.30 per Common Share, for a period of 24 months following the Closing Date.

After the final closing today of the Private Placement, 109,480,370 Common Shares were issued and outstanding.

Flow-Through Share proceeds will be used for qualified Canadian Exploration Expenditures on the Company's Canadian based properties located in Ontario and Unit proceeds will be used for further development of the Company's properties and for general corporate purposes.

The securities issued pursuant to the Private Placement will be subject to a hold period of four months and a day form the Closing Date. The private placement is subject to final acceptance for filing by the TSX Venture Exchange and receipt of any required regulatory approvals.

Investors are invited to visit the Melkior IR Hub at http://agoracom.com/ir/Melkior where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to MKR@agoracom.com where they can also request to be added to the investor e-mail list to receive all future press releases and updates in real time.

About Melkior:

Melkior is a junior exploration company with active exploration projects in West Timmins and the Mc Faulds "Ring of Fire" areas of Ontario. Melkior also holds a 49% interest in the Delta Kenty nickel-copper-platinum-palladium deposit in Ungava and has several other gold properties in Ontario and Quebec.

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.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in Melkior's periodic reports including the annual report or in the filings made by Melkior from time to time with securities regulatory authorities.

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