Cash Minerals Ltd.
TSX VENTURE : CHX

Cash Minerals Ltd.

November 03, 2005 09:21 ET

Cash Minerals Announces Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 3, 2005) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR VIA US NEWSWIRE SERVICES

Cash Minerals Ltd. (TSX VENTURE:CHX) is pleased to announce that it has entered into an agreement to raise up to $8 million by way of a best-efforts basis brokered private placement led by Pacific International Securities Inc. and including Sprott Securities Inc and PowerOne Capital Markets Limited (the "Agents"). Up to $4 million will be raised through the issuance of up to 8.9 million flow-through shares (the "FT Shares") priced at $0.45 per FT Share, and up to $4 million will be raised through the issuance of up to 10 million units (the "Units") priced at $0.40 per Unit, subject to regulatory approval. The Agents have been granted an option to offer for sale up to an additional 2.225 million FT Shares and up to an additional 2.5 million Units, exercisable until closing. Each Unit will consist of one common share and one half of one common share purchase warrant. Each whole common share purchase warrant will entitle the holder to purchase one additional common share, at $0.70, for a period of two years following the closing date. Closing is expected to occur on or about November 24, 2005.

The Agents will receive a commission of 6.0% of the gross proceeds raised in this private placement, as well as compensation options equal in number to 6.0% of the aggregate number of FT Shares and Common Share Units sold under the financing which will entitle the Agents to purchase, at an exercise price equal to $0.45, one common share and one half of one common share purchase warrant, for a period of two years. Each whole warrant will be exercisable into one common share at an exercise price of $0.75.

The gross proceeds from the sale of the FT Shares will be used for exploration of the Company's coal and uranium assets and will qualify as Canadian exploration expenses as defined in the Income Tax Act and will be renounced for the 2005 taxation year. The net proceeds of from the sale of the Units will be used to fund exploration and for general corporate purposes.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About Cash Minerals Ltd.

Cash Minerals has a two-pronged exploration and development focus in the Yukon. Its Division Mountain Coal Project's five Coal leases measure 776.4 hectares and the 30 Coal Exploration Licenses cover approximately 360,000 hectares in coal-bearing stratigraphy. A recently completed NI 43-101 Report on the Project by T. C. Becker, B.Sc., P.Geo. of Norwest Group (first reported by the Company on March 31, 2005 and filed as a technical report on SEDAR on April 1, 2005) confirms resources of 38.6 million tonnes (Measured) and 13.0 million tonnes (Indicated) and a full bankable feasibility study is nearing completion.

Cash's uranium exploration projects include interests in eight properties in the Yukon and western Quebec. Four of the projects host Olympic Dam-type mineralization, two have similarity to the prolific Rossing Deposit in South Africa, and one is testing possible unconformity-related, high grade, vein-and-fracture-controlled uranium mineralization. Cash Minerals Ltd. (www.cashminerals.com) is an emerging energy resource company listed on the TSX Venture Exchange under the symbol "CHX" and currently has approximately 36.3 million shares outstanding.

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The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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