Cross Lake Minerals Ltd.
TSX : CRN

Cross Lake Minerals Ltd.

March 12, 2007 18:54 ET

Cross Lake Minerals Ltd.: $8.5 Million Financing for QR Mine Development

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 12, 2007) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR RELEASE TO U.S. NEWSWIRE SERVICES

Cross Lake Minerals Ltd. (the "Company" or "Cross Lake") (TSX:CRN) is pleased to announce that it has engaged a syndicate of agents led by Pacific International Securities Inc., and including PowerOne Capital Markets Ltd., (the "Agents") for a commercially reasonable efforts brokered private placement (the "Offering").

The Offering will consist of the issuance of up to 5,000,000 units of the Company ("Units") at $0.50 per Unit and up to 10,000,000 flow-through units of the Company ("FT Units") at $0.60 per FT Unit. Each Unit will consist of one common share and one half of one transferable common share purchase warrant (each whole such purchase warrant, a "Warrant"). Each FT Unit will consist of one flow-through common share and one half of one Warrant. Each whole Warrant will be exercisable into one additional common share of the Company for a period of eighteen months from closing of the Offering at an exercise price of $0.75 per common share.

The Agents will be paid a commission of 7% of the gross proceeds of the Offering, which commission may be paid, at the election of the Agents, in cash or in whole or in part in Units (at a deemed price of $0.50 per Unit). The Agents will also receive compensation options equal in number to 10% of the number of Units and FT Units sold under the Offering, where each compensation option will entitle the Agents to purchase, at an exercise price of $0.60, one common share of the Company for eighteen months from the date of closing.

The total gross proceeds of the Offering will be up to $8,500,000. Cross Lake expects to use such proceeds for the continuing development of the Q.R. mine property and to finance general exploration activities. The gross proceeds raised from the issuance of the FT Units will be used for general exploration expenditures, which will constitute Canadian exploration expenses (as defined in the Income Tax Act) and will be renounced for the 2007 taxation year.

If the Offering is fully subscribed, the total number of securities to be issued pursuant to the Offering will exceed 25% of the issued and outstanding common shares of the Company. As a result, the rules of the Toronto Stock Exchange require that the Company obtain the approval of the shareholders to the Offering. Management of the Company intends to close at a minimum the non-flow-through portion of the Offering as soon as possible, and will be seeking the required shareholder approval of the balance of the financing at the upcoming Annual & Special General Meeting of shareholders to be held on May 1, 2007 (the "Meeting").

Completion of the Offering is also subject to regulatory approval and TSX acceptance.

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.

This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration and development activities and events or developments that the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see our public filings at www.sedar.com for further information.

12(g) No. 82-2636

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