Minco Silver Corporation
TSX : MSV

Minco Silver Corporation

October 22, 2009 16:38 ET

Minco Silver Closes $13,897,804 in a Non-Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 22, 2009) -

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Minco Silver Corporation (the "Company" or "Minco Silver") (TSX:MSV) is pleased to announce that it has closed the non-brokered private placement financing previously announced on September 24, 2009. The financing placed a total 8,175,179 Units at a price of $1.70 per Unit for a gross proceeds of $13,897,804 (the "Offering").

Each Unit consists of one (1) common share in the capital of the Company and one-half of one common share purchase warrant (each whole common share purchase warrant a "Warrant"). Each Warrant will entitle the holder to purchase one common share in the capital of Minco Silver at an exercise price of $2.15 for a period of twelve (12) months from the closing of the Offering.

The Company placed a total of 6,000,000 Units with IDG-Accel China Growth Fund II L.P. ("IDG-Accel Fund") and IDG-Accel China Investors II L.P. ("IDG-Accel Investors") for gross proceeds of $10,200,000. IDG-Accel Fund acquired, indirectly through Blue Sky Strategic Holdings I, Ltd., ownership of 5,546,400 Units, and IDG-Accel Investors acquired, indirectly through Blue Sky Strategic Holdings II, Ltd., ownership of 453,600 Units. In aggregate, IDG-Accel Fund and IDG-Accel Investors acquired indirect ownership of 6,000,000 Units, and the 6,000,000 common shares, and the 3,000,000 common shares issuable upon exercise of the warrants, represents up to approximately 20.64% of the outstanding common shares of Minco Silver.

The Company will pay a 7% finders' fee in connection with a portion of the Offering in the amount of $244,707 subject to the Toronto Stock Exchange acceptance.

The proceeds of the Offering will be used for the development of the Company's Fuwan Silver Project located in the Province of Guangdong in the Peoples Republic of China; the continued financing of Sterling Mining Company and reorganization and for general corporate purposes.

IDG-Accel Fund is a limited partnership organized under the laws of the Cayman Islands. The general partner of IDG-Accel Fund is IDG-Accel China Growth Fund II Associates L.P., a limited partnership organized under the laws of the Cayman Islands. The general partner of IDG-Accel China Growth Fund II Associates L.P. is IDG-Accel China Growth Fund GP II Associates Ltd., a limited liability company incorporated under the laws of the Cayman Islands. IDG-Accel Investors is a limited partnership organized under the laws of the Cayman Islands. The general partner of IDG-Accel Investors is IDG-Accel China Growth Fund GP II Associates Ltd., which is also the general partner of IDG-Accel China Growth Fund II Associates L.P., which is the general partner of the IDG-Accel Fund. Blue Sky Strategic Holdings I, Ltd. and Blue Sky Strategic Holdings II, Ltd., each a limited liability company organized under the laws of the British Virgin Islands, are wholly-owned by IDG-Accel Fund and IDG-Accel Investors, respectively.

About Minco Silver

Minco Silver Corporation (TSX:MSV) is a TSX listed company focusing on the acquisition and development of silver dominant projects. The Company owns 90% interest in the world class Fuwan Silver Deposit, situated along the northeast margin of the highly prospective Fuwan Silver Belt. For more information on Minco Silver, please visit the website at www.mincosilver.ca.

ON BEHALF OF THE BOARD
"Dr. Ken Z. Cai"
Chairman & CEO

Certain terms or statements made that are not historical facts, such as anticipated advancement of mineral properties or programs, productions, sales of assets, exploration plans or results, costs, prices, performance are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, expected or implied. These risks and uncertainties include, but are not limited to; metals price volatility, volatility of metals production, project development risks and ability to raise financing. The Company undertakes no obligation and has no intention of updating forward-looking statements.

The Toronto Stock Exchange does not accept responsibility for the accuracy of this news release.

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