Argus Metals Corp.
TSX VENTURE : AML

Argus Metals Corp.

July 19, 2011 09:00 ET

Argus Closes Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 19, 2011) - Argus Metals Corp. (the "Company") (TSX VENTURE:AML) –

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Argus Metals Corp. announces that it has received TSX Venture Exchange approval to the closing of its private placement. The Company has raised an aggregate $1,508,500 via two tranche closings through issuance of 13,285,000 units at a price of $0.10 per unit ("Unit") in the first tranche and issuance of 1,800,000 Units in the second tranche closing.

Each Unit consists of one common share and one half of one common share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder to purchase one common share of the Company for a period of 18 months from the closing date at a price of $0.25 per share, provided that should the closing price of the Company's shares be at least $0.35 per share for 20 consecutive trading days at any time following four months after the date of closing, the Company may reduce the remaining exercise period of the Warrants to not less than 30 days following the date of giving notice.

A finder's fee of $44,265.00, 261,450 Units and 550,200 finder's warrants of the Company were paid in connection with the private placement closing. The securities issued in relation to this financing are subject to regulatory four month hold periods expiring November 1, 2011, and November 15, 2011.

The proceeds from this financing will be used to continue exploration on the Company's exploration projects and for general working capital purposes.

The Company also reports that it has, subject to regulatory approval, retained Peter Grandich to provide investor relations services.

Mr. Grandich will receive a total compensation of $36,000 (U.S.) for an initial term of 12 months, payable in advance on a monthly basis of $2,000 (U.S.) per month starting July, 2011. Grandich will also receive 200,000 incentive stock options of the Company at an exercise price of $0.17 per share, exercisable for a term of five years. An additional 1,050,000 options, priced at $0.17 have been issued to officers, directors and consultants to the Company for a term of five years.

Paul D. Gray, P.Geo., is the Company's Qualified Person with respect to the Company's Projects and has reviewed and approved this press release.

For additional information please visit the Company's website at www.argusmetalscorp.com.

On behalf of the Board of Directors,

Michael Collins, CEO and Director

The Units have not been registered under the United States Securities Act of 1933, as amended (US Securities Act), and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This news release does not constitute an offer to sell or a solicitation of an offer to buy such Units in any jurisdiction in which such an offer or sale would be unlawful. Certain statements in this press release may be considered forward-looking information, including those relating to the "expectations", "intentions" or "plans" of the Company, and there is no guarantee the above mentioned private placement will close on the basis announced, or at all. Such information involves known and unknown risks, uncertainties and other factors – including the approvals of regulators, availability of funds, the results of financing and exploration activities, the interpretation of drilling results and other geological data, project cost overruns or unanticipated costs and expenses and other risks identified by the Company in its public securities filings - that may cause actual events to differ materially from current expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company disclaims any intention or obligation to update or revise any forward-looking statements, except to the extent required by law, whether as a result of new information, future events or otherwise.

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