Minefinders Corporation Ltd.
TSX : MFL
NYSE Amex : MFN

Minefinders Corporation Ltd.

September 21, 2009 15:31 ET

Minefinders Files Prospectus Supplement Relating to C$66 Million Bought Deal

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 21, 2009) - Minefinders Corporation Ltd. ("Minefinders" or the "Company") (TSX:MFL)(NYSE Amex:MFN) will be filing today a prospectus supplement (the "Prospectus Supplement") to the Company's Canadian short form base shelf prospectus dated December 1, 2008 (the "Shelf Prospectus") in all of the provinces and territories of Canada (other than Quebec), and in the United States by way of a prospectus supplement to the Company's shelf registration statement and related prospectus filed with the United States Securities and Exchange Commission (the "SEC") on December 1, 2008.

The Prospectus Supplement relates to the previously announced agreement with a syndicate of underwriters under which the underwriters have agreed to buy on a bought deal basis 6,200,000 common shares in the capital of the Company (the "Common Shares") at a price of C$10.65 per Common Share for gross proceeds of C$66,030,000 (the "Offering"). The lead underwriters for the Offering are BMO Capital Markets and Scotia Capital Inc. with an underwriting syndicate that also includes Salman Partners Inc. Under the terms of the underwriting agreement, the Company has granted to the underwriters an over-allotment option to purchase up to an additional 900,000 Common Shares up to 30 days from the closing of the Offering.

As required by the SEC on the filing of the prospectus supplement, the Company has also filed revised financial statements for the years ended December 31, 2008, 2007 and 2006 which updates the US GAAP reconciliation note for those years to reflect the Company's retrospective adoption in 2009 of FSP APB 14-1, Accounting For Convertible Debt Instruments That May Be Settled In Cash Upon Conversion (Including Partial Cash Settlement). The consolidated interim financial statements for the three and six month periods ended March 31, 2009 and June 30, 2009 reflect this change in accounting principles. Other than with regard to the US GAAP reconciliation note, the revised financial statements are unchanged.

A copy of the prospectus supplement may be obtained upon request by contacting Investor Relations at BMO Capital Markets, Distribution Department, 1 First Canadian Place, B2 Level, Toronto, Ontario, M5X 1H3 (tel: 416-363-6996 x224), or in the United States from BMO Capital Markets Corp., Attention: Lori Begley, 3 Times Square, 27th Floor, New York, New York, 10036 (tel: 212-885-4039).

About Minefinders

Minefinders is a precious metals mining and exploration company and operates the multi-million ounce Dolores gold and silver mine in Mexico. The Company continues its exploration effects on other prospective projects in Mexico to build a quality pipeline of precious metals projects for future growth.

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