Columbia Yukon Explorations Inc.

Columbia Yukon Explorations Inc.

March 12, 2007 10:31 ET

Columbia Yukon Announces $2.4 Million Financing

WEST VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 12, 2007) - Columbia Yukon Explorations Inc. (the "Company") (TSX VENTURE:CYU) announces that, subject to regulatory approval, it intends to proceed with a non-brokered private placement (the "Private Placement") to raise up to $2,400,000 by the issuance of 6,000,000 units at $0.40 per unit (the "Units"). Each Unit will consist of one common share and one common share purchase warrant, with each warrant entitling the holder to purchase an additional common share at a price of $0.50 for a period of one year from the closing date. With respect to this Private Placement, the Company will pay a finder's fee in the amount of 7% of the Units sold (payable in cash or in Units at a deemed price of $0.40 per Unit) and issue warrants entitling the holder to purchase that number of common shares as is equal to 10% of the number of Units purchased by subscribers introduced to the Company by such finders.

The proceeds from this Private Placement will be used for general working capital and for exploration and development of the Company's "Storie" molybdenum property located in northern British Columbia. The Storie property lies south of the former Cassiar Mine townsite and is accessible by paved highway to Cassiar and then 5 kilometers of all weather gravel road.

For 2007, the Company has budgeted for a 10,000 to 20,000 metre core drilling program in an effort to provide additional confirmation of the resource with infill drilling, and to test the potential increase of the size of the resource with exploration along strike and in parallel targets. The Company is currently finalizing the drill contracts for this program which is scheduled to start in late spring. Also, prior to completing a pre-feasibility study, the Company plans to take a bulk sample for preliminary metallurgical testing.

The historical resource estimate for the Storie Property molybdenum deposit is 100,500,000 tonnes @ 0.077% Mo or 0.129% MoS2. The resource calculated by Shell Canada Resources Ltd. ("Shell") in 1981 is a historical resource and does not meet National Instrument 43-101 standards and as such can not be relied upon. The Company's Qualified Person, John Kowalchuk, P. Geo., has not reviewed the calculation for the historical resource; however, believes that it has been calculated by competent engineers to the standards of the period. The historical resource estimate was based on 86 drill holes, covering an approximate 1000-metre (3,280 feet) strike length, over a 300-400 metre (980-1,310 feet) width and to a vertical depth of 150 metres (492 feet).

As recently announced, the Company has retained Watts, Griffis and McOuat, Geological Engineering Consultants, to construct a deposit model and to calculate an NI 43-101 compatible resource for the Storie property. Following the resource calculation, Watts, Griffis and McOuat have also been engaged to complete a scoping study for the Storie project. The scoping study will help guide the Company's exploration of the Storie project towards full feasibility. The scoping study is scheduled to be completed by April/May 2007.

John Kowalchuk, P. Geo., has reviewed this release and is the Qualified Person for the Storie molybdenum property project.

Also, the Company has granted an aggregate of 138,000 incentive stock options to certain consultants and officers of the Company, which options are exercisable at $0.40 per share and governed by the terms of the Company's stock option plan.

Columbia Yukon Explorations Inc.

Douglas L. Mason, Chairman

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

Contact Information

  • Columbia Yukon Explorations Inc.
    Mr. Clive Shallow
    Investor Communication
    (604) 922-2030
    (604) 922-2037 (FAX)