Adriana Resources Inc.
TSX VENTURE : ADI

Adriana Resources Inc.

October 17, 2007 15:47 ET

Adriana Announces Closing of $5 Million Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 17, 2007) - Adriana Resources Inc. ("Adriana" or the "Company") (TSX VENTURE:ADI) announces the closing of the $5,000,000 non-brokered private placement announced on October 11, 2007. The unsecured subordinated convertible debenture in the amount $5,000,000 (the "Debenture") was issued to one investor. The Debenture is convertible into common shares of the Company at a conversion price of $1.05 per share if exercised prior to October 1, 2009 and at a price of $1.16 per share if exercised on or before October 1, 2010. The Debenture has a three year term and bears interest at 7% per annum.

The purchaser of the Debenture, Patriarco Holdings Ltd. ("Patriarco"), has undertaken not to exercise conversion rights attached to the Debenture if the conversion results in Patriarco holding in excess of 20% of the outstanding shares of the Company (a "Control Person" as defined by the TSX Venture Exchange) without the Company first obtaining disinterested shareholder approval.

Up to 4,761,905 common shares will be reserved for issuance as the maximum number of securities issuable upon conversion of the Debenture. Any securities issued upon conversion of the Debenture will be subject to a hold period expiring on February 11, 2008.

Proceeds of this financing will be used in part to fund the Company's commitment for the Brazilian port site development, announced on August 22, 2007, and for general working capital.

About Adriana Resources Inc.

Adriana Resources Inc. is a mineral exploration and development company with advanced and early staged mineral projects in Canada, Finland and Brazil. The individuals comprising Adriana's Board have a proven record in identifying and successfully developing mineral deposits through to production. Adriana is focused on bringing our advanced mineral project in Finland to production and developing a world class iron ore port facility in Brazil.

ON BEHALF OF ADRIANA RESOURCES INC.

Michael J. Beley, President

Certain information regarding the Company including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with mining exploration and development, volatility of prices, currency fluctuations, imprecision of resource estimates, environmental risks and permitting, access to labour and services, competition from other companies and ability to access sufficient capital. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this release.

Contact Information

  • Adriana Resources Inc.
    Robert Ferguson
    (604) 629-0250 or Toll Free: 1-877-629-0150
    (604) 629-0923 (FAX)
    Website: www.adrianaresources.com