Probe Mines Limited
TSX VENTURE : PRB

Probe Mines Limited

October 22, 2007 16:15 ET

Probe Mines Announces $3,000,000 Non-Brokered Private Placement to Explore McFauld's Lake Project

TORONTO, ONTARIO--(Marketwire - Oct. 22, 2007) - The Directors of PROBE MINES LIMITED (TSX VENTURE:PRB) ("Probe") are pleased to announce a proposed non-brokered private placement financing of up to $3,000,000 comprising the sale of up to 4,000,000 Units, to be sold at $0.75 per Unit, subject to regulatory approval and closing. Each Unit consists of one common share and one-half of one common share purchase warrant. Each whole common share purchase warrant entitles the holder to acquire one common share for $1.00 for a period of 24 months (the "Warrant Term") from the closing of the transaction (the "Closing Date"), provided, however, that should the closing price at which the common shares trade, equal or exceed $1.75 for 20 consecutive trading days following the date that is four months and one day after the Closing Date, Probe may accelerate the Warrant Term to the date which is 30 days following the date a press release is issued by Probe announcing the reduced Warrant Term. All securities issued in conjunction with the offering will be subject to a hold period, which expires four months after closing.

Proceeds of the financing will be used to fund exploration on the Company's McFauld's Lake properties, including the 100%-owned McFauld's Lake West Project, located approximately 450m from Noront Resources recent high-grade nickel-copper-PGE discovery; and the 100%-owned Victory Project which hosts numerous untested drill targets in a volcanic belt attached to the McFauld's Lake Belt. Exploration on the McFauld's Lake properties will include a winter program of magnetic and electromagnetic geophysical surveys followed by diamond drilling. The programs are expected to commence shortly, and will be focused on bringing the properties to a drill-ready state as soon as possible. Drilling will focus on the McFauld's West property, where regional government magnetic data shows the presence of two anomalies within the claims that are similar in size and shape to that associated with Noront's discovery.

The McFauld's area is once again receiving considerable attention with the recent discovery of high-grade nickel-copper-PGE mineralization by Noront Resources. Results from hole NOT07-05 returned a 63.8m intersection of massive and net-textured sulphides in olivine-bearing peridotite grading 5.9% nickel, 3.1% copper, 2.9 g/t Pt and 9.8 g/t Pd; including a 3m interval grading 8.7% nickel, 10.9% copper, 41 g/t Pt and 14 g/t Pd. Recent field observations indicate the boundary of Probe's McFauld's West property is only 450m from the discovery zone. The management of Probe is encouraged by the proximity to this significant discovery, and believes there is a strong potential for this property to also host mineralization.

About Probe Mines:

Probe Mines Limited is a Canadian base and precious metal exploration company with a portfolio of highly prospective mineral properties. The Company is currently focused on the McFauld's Lake area where it owns 931 claims covering almost 15,000 hectares. This includes a 100% interest in 12 claims (192 hectares) situated less than 450 metres from the site of Noront's significant new nickel-copper discovery and represents one of the closest properties to the discovery. Probe currently has joint venture agreements on its Bristol Township gold project (West Timmins Mining Inc.) and Tamarack base metal project (Mantis Minerals Corp.). The Bristol Project is adjacent to the million-plus ounce gold deposit owned by Lake Shore Gold Corp., which has recently announced a positive pre-feasibility study for the project. Probe also maintains a 5% net smelter royalty on a portion of Agnico Eagle's Goldex Mine near Val d'Or, Quebec, slated for production in 2008. The company's shares trade on the TSX Venture Exchange under the symbol PRB.

Investors are invited to visit the Probe Mines IR Hub at http://www.agoracom.com/IR/Probemines 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 PRB@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.

David Palmer, Ph.D., P.Geo., is the qualified person for all technical information in this release. To find out more about Probe Mines Limited, visit our website at www.probemines.com.

Forward-Looking Statements

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Probe, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially form those anticipated in such statements. Important factors that could cause actual results to differ materially from Probe's expectations are exploration risks detailed herein and from time to time in the filings made by Probe with securities regulators.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Probe Mines Limited
    David Palmer, Ph.D.
    President
    (416) 777-6703
    or
    Probe Mines Limited
    Harry J. Hodge, P.Eng.
    Director
    (416) 363-4376
    or
    Probe Mines Limited
    Karen Willoughby
    Investor Relations
    1-866-365-4724
    Website: www.probemines.com