Black Smoker Ventures Inc.
CNSX : BSM

Black Smoker Ventures Inc.

April 20, 2012 18:35 ET

Black Smoker Announces Closing of First Tranche of Private Placement for Gross Proceeds of $295,300

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 20, 2012) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

Black Smoker Ventures Inc. (CNSX:BSM) ("Black Smoker" or the "Company") announces that further to its news releases of February 21, 2012 and March 19, 2012, the Company has closed the first tranche of the non-brokered private placement of units (the "Offering") for gross proceeds of $295,300.

The first tranche closing consisted of 3,691,250 units (the "Units") at a price of $0.08 per Unit. Each Unit consists of one flow-through common share of the Company and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder to purchase one non flow-through common share of the Company (the "Share") at a price of $0.14 per Share until April 17, 2013.

In connection with the Offering, the Company has paid a cash commission in the total amount of $13,000.00, being 8% of the aggregate proceeds from the sale of Units to purchasers introduced by a finder. The Company has also issued warrants (the "Finder's Warrants") to acquire a total of 162,500 Shares, being 8% of the number of Units sold under the Offering to purchasers introduced by a finder. Each Finder's Warrant entitles the holder to purchase one Share at a price of $0.10 per Share until April 17, 2013.

All securities issued under the Offering are subject to a four month hold period ending August 18, 2012 in accordance with applicable Canadian securities laws. The net proceeds of the Offering will be used by the Company to incur exploration expenditures on the Company's Fox Lake Property in the Province of Manitoba.

In addition, the Company is pleased to announce the appointment of Justin Blanchet, CA, CPA (Illinois) as the Company's Chief Financial Officer. In connection with Mr. Blanchet's appointment, Robert Geisthardt has resigned his position as Chief Financial Officer and Corporate Secretary of the Company. The Company thanks Mr. Geisthardt for his contributions to the company and wishes him well in his future endeavors.

Mr. Blanchet is a member of the Institute of Chartered Accountants of British Columbia and the Illinois Certified Public Accountant Society and brings more than 8 years of mining experience in the areas of financial management, regulatory compliance, tax, treasury, and audit. Mr. Blanchet has held a variety of roles including Chief Financial Officer for a number of public mineral exploration and development companies. Mr. Blanchet also holds a Bachelor of Technology in Accounting degree from the British Columbia Institute of Technology.

About Black Smoker

Black Smoker is presently focused on the exploration of the Fox Lake Property in Manitoba, Canada. The Company will continue its core business while developing and assessing plans for the Fox Lake Property. A total of approximately 12 million tons grading 1.82 % copper and 1.78% zinc was produced from the Fox Mine in the years 1970 to 1985. Black Smoker is utilizing modern deep penetrating geophysical techniques to target new discoveries at depth and in proximity to the historic mine site.

On behalf of the board of directors of:

BLACK SMOKER VENTURES INC.

Carson Seabolt, Chief Executive Officer

THE CNSX HAS NEITHER APPROVED NOR DISAPPROVED THE INFORMATION CONTAINED HEREIN.

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