BALTIC RESOURCES INC.

BALTIC RESOURCES INC.

March 24, 2005 12:40 ET

Baltic Resources Inc.: Press Release


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: BALTIC RESOURCES INC.

TSX VENTURE SYMBOL: BLR

MARCH 24, 2005 - 12:40 ET

Baltic Resources Inc.: Press Release

TORONTO, ONTARIO--(CCNMatthews - March 24, 2005) - Baltic Resources Inc.
(TSX VENTURE:BLR)

The Company wishes to announce that it will be seeking disinterested
shareholder approval for its proposed acquisition from Donald McKinnon
of the two mining properties (the "Properties") located in the mining
districts of Sault Ste. Marie, Ontario and Porcupine, Ontario, as
previously disclosed in the Company's news release dated January 20,
2005, at its annual and special meeting of shareholders (the "Meeting")
to be held on May 4, 2005.

The Company is expecting to close a private placement financing, as
previously announced in the Company's news release dated January 20,
2005, on or about March 29, 2005 pursuant to its agreement with Integral
Wealth Securities Limited (the "Agent") to sell, on a best efforts basis
"flow-through" shares (the "Flow-Through Shares") of the Company and
units (the "Units") of the Company by private placement at a price of
$0.23 and $0.20, respectively, for aggregate gross proceeds of up to
$1.2 million (the "Offering").

Each Unit will consist of one common share in the capital of the Company
(a "Common Share") and one-half of one Common Share purchase warrant
(each whole Common Share purchase warrant a "Warrant"). Each Warrant
will entitle the holder thereof to acquire one Common Share at a price
of $0.30 for a period of 18 months from the closing of the Offering.

As consideration for its services in connection with the Offering, the
Agent has received a corporate finance fee of $10,000, and will receive
a cash commission equal to 8% of the gross proceeds of the Offering and
warrants (the "Broker's Warrants") in the amount that is equal to 10% of
the number of Units and Flow-Through Shares sold pursuant to the
Offering, which shall be respectively payable and issuable to the Agent
on the closing of the Offering. Each Broker's Warrant shall be
exercisable at a price of $0.20 for one Common Share and one-half of a
Warrant for a period of 18 months following the closing of the Offering.
The closing of the Offering is subject to regulatory approval.

The proceeds of the Offering will be used for general working capital
purposes and exploration activities. The securities issued under the
Offering will be subject to a hold period of four months from the
closing date.

Subject to obtaining shareholder approval at the Meeting, following the
Meeting the Company intends to undertake another private placement
financing in order to fund the Company's work program on the Properties,
subject to regulatory approval.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Baltic Resources Inc.
    Donald D. McKinnon
    President and Chief Executive Officer
    705.268.8822
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.