Pitchstone Exploration Ltd.

Pitchstone Exploration Ltd.

December 22, 2009 07:00 ET

Pitchstone Closes Flow-Through Financing

- Financing increased to $654,255

- Athabasca drilling progress

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 22, 2009) - Pitchstone Exploration Ltd. (TSX VENTURE:PXP) ("Pitchstone" or the "Company") is pleased to announce that it has closed a non-brokered private placement of 1,453,900 "flow-through" common shares at $0.45 per share to raise gross proceeds of $654,255. The amount raised was increased from the previously announced $520,000 due to additional demand. A cash finder's fee of $22,500 has been paid in connection with part of the private placement. All securities issued in the private placement will have a hold period expiring on April 22, 2010.

Pitchstone's cash position is now approximately $5.3 million and the Company has 36.5 million common shares outstanding after the closing. The flow-through funds raised will be used for exploration on Pitchstone's Canadian property interests, which will constitute Canadian Exploration Expenses (as defined in the Income Tax Act) and will be renounced for the 2009 taxation year.

Athabasca Drilling

Establishment of the winter access road to Gumboot, 20 kilometers northwest of Cigar Lake, and re-opening of the camp are underway. Pitchstone plans 6,000 meters of core drilling on its Athabasca Basin properties this winter. Drilling will focus on its 100% owned Gumboot property where uranium mineralization was intersected earlier in 2009 (see September 9, 2009 News Release). Mineralization at Gumboot is open along strike in both directions and the five kilometer long graphitic horizon is largely untested (see maps at www.pitchstone.net).

About Pitchstone

Pitchstone is exploring for uranium in three proven districts in Canada and Namibia. The property portfolio features 12 projects in the eastern Athabasca Basin, Saskatchewan, four of which are 100% owned. In addition, there is a joint venture on two projects in Namibia and several joint venture projects in the Hornby Bay Basin, Nunavut. Pitchstone benefits from the collaboration of a unique group of geologists with extensive uranium exploration and production experience.

On behalf of the Board,

E.A.G. (Ted) Trueman, CEO & Chairman

This news release may contain assumptions, estimates, and other forward-looking statements regarding future events. Such forward-looking statements involve inherent risks and uncertainties and are subject to factors, many of which are beyond Pitchstone's control, that may cause actual results or performance to differ materially from those currently anticipated in such statements.

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

  • Pitchstone Exploration Ltd.
    Claire Stewart
    604 630 5563
    Pitchstone Exploration Ltd.
    Mark T. Brown
    604 687 3520