Catalina Metals Corp

February 25, 2011 18:09 ET

Catalina Metals Corp.: Financing and Debt Settlement Completed; New Director Appointed

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 25, 2011) - Catalina Metals Corp. (TSX VENTURE:CTX.H) ("Catalina" or the "Company") reports that it has closed on a previously announced (February 11, 2011) non-brokered private placement of 6,250,000 units at a price of $0.08 per unit. A unit consists of one common share and one share purchase warrant. Each share purchase warrant is exercisable into one further common share at a price of $0.10 for a period of one year expiring February 16, 2012. The shares and any shares acquired on exercise of the warrants are subject to restrictions on resale to June 17, 2011. The Company issued 318,850 units, having the same terms as the units issued under the private placement, as a finder's fee to Leede Financial Markets Inc.

The Company also reports that it has settled outstanding debt of approximately $150,800 to creditors by the issuance of 1,885,000 units at a deemed price of $0.08 per unit, the units having the same terms as the units offered under the private placement and, further, had settled further outstanding indebtedness of $30,000 owed to a Director of the Company by issuance of 375,000 shares at a deemed price of $0.08 per share. The securities issued under the debt settlement transaction are subject to restrictions on resale to June 17, 2011.

Catalina is pleased to announce the appointment of R. Bob Singh to its Board of Directors. R. Bob Singh, P.Geo., received his B.Sc. in Economic Geology at the University of British Columbia in 1991 and has been associated with the mineral exploration industry for over 23 years. Bob brings a strong technical background in evaluating and exploring gold and base metal systems and has outstanding geological, data management, computer and project management abilities. Bob has worked for both junior and major mining companies as well as developed new technologies for recording and analyzing geological data through his role as President and Founder of North Face Software Ltd. Bob has managed several exploration programs in the Red Lake Gold district since 2003 and was a key member of an exploration team exploring for sediment hosted gold deposits in British Columbia. Mr. Singh will serve as Catalina's Qualified Person as defined by NI 43-101.

David Pallen has resigned as a Director of the Company. The Board of Directors wishes to thank Mr. Pallen for his contribution and service to the Company.

Neither the 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.

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