Crown Minerals Inc.
TSX VENTURE : CWM

May 19, 2010 12:38 ET

Crown Minerals Inc. Announces Completion of Financing With the MineralFields Group

TORONTO, ONTARIO--(Marketwire - May 19, 2010) - Crown Minerals Inc. ("Crown" or the "Company") (TSX VENTURE:CWM) is pleased to announce that it has successfully completed the first tranche of its previously announced $500,000 non-brokered private placement. An aggregate of 2,916,666 flow-through units were sold on May 17, 2010 to funds of the MineralFields Group at a price of $0.12 per flow-through unit for gross proceeds of $350,000 and an aggregate of 500,000 non-flow-through units were sold to other accredited investors at a price of $0.10 per unit for gross proceeds of $50,000. Each flow-through unit is comprised of one flow-through common share and one-half of a flow-through common share purchase warrant. Each whole flow-through warrant entitles the holder to purchase one non-flow-through common share at any time within 18 months after closing at a price of $0.25. Each non-flow-through unit is comprised of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one non-flow-through common share at any time within 18 months after closing at a price of $0.20.

Two finders received in the aggregate 5% cash commission and 291,666 finder's warrants, being 10% of the aggregate number of flow-through units purchased through the finders. Each finder's warrant entitles the holder to purchase for a period of 18 months following closing one finder's unit comprised of one non-flow-through common share and one-half of a non-flow-through warrant for a price of $0.12.

The gross proceeds to Crown from the sale of the flow-through units will be used to fund exploration expenses which qualify as "Canadian Exploration Expenses" (within the meaning of the Income Tax Act (Canada)) in connection with Crown's recently acquired gold properties in Ontario, including in Whitney and Deloro Townships near Timmins, Ontario, at the Stairs mine near Matachewan, Ontario and on Mackenzie Island near Red Lake, Ontario. The gross proceeds from the sale of the non-flow-through units will be used to fund administration and other expenses.

All the securities issued pursuant to this private placement are subject to a four (4) month hold period. 

"We are very pleased to be continuing our relationship with MineralFields Group", said Stephen Dunn, President, Chief Executive Officer and Secretary of Crown. "This is an important milestone in the growth of Crown and we look forward to working with MineralFields Group as we develop our holdings in Ontario."

About MineralFields, Pathway and First Canadian Securities ®

MineralFields Group (a division of Pathway Asset Management), based in Toronto, Vancouver, Montreal and Calgary, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities ® is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities ®.

This news release shall not constitute an offer to sell or solicitation of an offer to buy the securities in any jurisdiction. The securities comprising the units, the flow-through units and the finder's warrants have not been and will not be registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent an applicable exemption from the registration requirements.

This news release contains forward-looking statements within the meaning of applicable Canadian and U.S. securities regulation, including statements regarding the future activities of the Company. Forward-looking statements reflect the current beliefs and expectations of management and are identified by the use of words including "will", "anticipates", "expects", "expected to", "plans", "planned", "proposed" and other similar words. Actual results may differ significantly. The achievement of the results expressed in forward-looking statements is subject to a number of risks, including those described in the Company's management discussion and analysis as filed with the Canadian securities regulatory authorities which are available at www.sedar.com. Investors are cautioned not to place undue reliance upon forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or contents of this news release.

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