Altai Resources Inc.

Altai Resources Inc.

March 10, 2005 12:08 ET

Altai Resources Inc. Announces Private Placement Closing and Company Update


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ALTAI RESOURCES INC.

TSX VENTURE SYMBOL: ATI

MARCH 10, 2005 - 12:08 ET

Altai Resources Inc. Announces Private Placement
Closing and Company Update

TORONTO, ONTARIO--(CCNMatthews - March 10, 2005) - Altai Resources Inc.
(TSX VENTURE:ATI), (US Sec. Rule 12g3-2(b) File # 82-2950) (the
"Company") announces the following transaction and Company update:

The Company has closed a non-brokered private placement of $80,000 for
the issuance of 800,000 flow through common shares at $0.10 per share
which are subject to hold until July 2, 2005. The proceeds will be used
for the ongoing exploration work of the Company.

Altai Philippines Mining Corporation ("APMC"), the Company's 40% owned
affiliate, has signed an option agreement with a group of two Australian
and a Philippine company headed by Sunshine Mining Pty. Ltd. (the
"Optionee") for the sale of APMC's Sibuyan lateritic nickel property,
Romblon province, Philippines. The option exercise price of C$1.3
million is payable within six months of the Philippine Government
signing a Mineral Profit Sharing Agreement ("MPSA") with APMC on the
property. The MPSA application involves public hearings with the local
governments and organisations which are to be held in the near future.
The Optionee will make a non-refundable advance of US$70,000 to APMC
towards the costs of the hearings. If and when the sale occurs,
approximately C$720,000 of the sale proceeds will accrue to the Company
as partial repayment of APMC's debt to the Company.

APMC informed the Company that its MPSA application on the Mabulao
property, Camarines Norte, Philippines, has been cancelled by the
Philippine Government due to APMC's insufficient working capital to
maintain the number of properties it holds. APMC also informed the
Company that the Samar Island MPSA application has been cancelled as the
provincial government no longer intends to issue new MPSAs on that
island. APMC currently has five exploration properties remaining in its
portfolio.

The asset sale agreement between Bolcar Energie Inc. ("Bolcar") of
Montreal, the Company and its joint-venture partner in its seven gas and
oil permits in the Sorel area, Quebec for the sale to Bolcar of the said
permits (announced in the Company's press releases of May 19, 2004 and
September 2, 2004) has now expired without the proposed transaction
being closed. Bolcar did not complete the minimum additional equity
financing per the terms of the agreement. The Company is now open to
proposals from all interested parties on the permits.

Dr. Didier Pomerleau, a director of the Company since May 7, 2001,
resigned from his directorship effective March 3, 2005 due to his busy
work schedule. The Company thanks Dr. Pomerleau for his dedicated
service during his tenure.

ALTAI RESOURCES INC. IS AN EXPLORATION COMPANY WITH A PORTFOLIO OF
PROMISING NATURAL GAS, GOLD, NICKEL AND INDUSTRIAL MINERALS PROPERTIES
IN CANADA AND PHILIPPINES.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Dr. Niyazi Kacira, President and CEO, Tel: (416) 383-1328
    Fax: (416) 383-1686, Email: altai@arex.com
    Internet: http://www.altairesources.com
    TSX Venture Exchange has neither approved nor disapproved of the
    information contained herewith.