Australian Minerals Fields

April 02, 2007 14:30 ET

Australian Mineral Fields Inc. Raises $5.5 Million in Private Placement

PERTH, WESTERN AUSTRALIA--(CCNMatthews - April 2, 2007) -


Australian Mineral Fields Inc. (the "Company") announced today that it has closed a private placement under which it issued 11,091,155 units at a price of Cdn.$0.50 per unit to raise gross proceeds of over Cdn.$5.5 million, less the commissions and expenses paid by the Company in connection with the offering. PowerOne Capital Markets Limited ("PowerOne") acted as agent in connection with the sale of five million units, and the remaining units were issued on a non-brokered basis.

Each unit consists of one common share in the capital of the Company and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase an additional common share at a price of Cdn.$1.00 per share. In addition, each unit entitles the holder to one penalty right convertible into an additional 0.01 units on December 31, 2007 and on the last day of each subsequent calendar month thereafter unless and until the common shares of the Company are listed and posted for trading on the Toronto Stock Exchange, the TSX Venture Exchange or, with the consent of PowerOne, such other stock exchange as may be put forth by the Company.

Proceeds from the private placement will be used to fund grassroot exploration activities and reconnaissance drilling activities on the Company's exploration projects, geological reports and other fees related to the Company's intended application to have its common shares publicly traded and for general working capital purposes.

"The success of the private placement enables Australian Mineral Fields to accelerate the execution of our growth strategy according to plan," said Company President and Managing Director Marcus Willson. "In less than 10 months following our inception, we have acquired interests in five gold projects in Western Australia that provide a solid foundation for building a balanced portfolio with strong potential to yield both near and longer term shareholder value."

About Australian Mineral Fields

Australian Mineral Fields Inc., headquartered in Perth, Australia, advances the application of industry leading mineral exploration and development techniques in Australia. These techniques enable the Company to quickly and precisely identify opportunities with high economic potential that conventional methods cannot. The Company's objective is to rapidly develop a balanced portfolio ranging from early to advanced stage properties that offer shareholders the greatest potential for maximizing value while minimizing both exploration and investment risk.

FORWARD-LOOKING STATEMENTS: This news release contains forward-looking statements. These statements relate to future events or to the Company's future performance. The accuracy of these statements is dependent on known and unknown risks, uncertainties and other factors that may cause the Company's or its industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressly or implicitly predicted by the forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", or the negative of such terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially. In evaluating these statements, you should specifically consider various factors, including the risks commonly applicable to the mining industry, which may cause actual results to differ materially from any forward-looking statement. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievements. Moreover, neither the Company nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. The Company is under no duty to update any of the forward-looking statements after the date of this news release in order to conform such statements to actual results, whether such results are based on new information or otherwise.

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