December 23, 2008 12:42 ET

Darnley Bay Resources Closes Financing

TORONTO, ONTARIO--(Marketwire - Dec. 23, 2008) - Darnley Bay Resources Limited (TSX VENTURE:DBL) is pleased to announce that it has closed its previously announced non-brokered private placement of units ("Units") and flow-through units ("FT Units") to raise gross proceeds of $84,130. In connection with the financing, the Company issued an aggregate of 534,000 Units and 133,666 FT Units.

Each Unit was issued at a price of $0.12 per Unit, and consisted of one common share of DBL and one common share purchase warrant. Each common share purchase warrant is exercisable for two years from the closing date (December 17, 2008), at an exercise price of $0.24/Unit. The proceeds will be used for working capital. Each $0.15 FT Unit consists of one flow-through share and one flow-through share purchase warrant. Each flow-through share purchase warrant is exercisable for two years from the closing date (December 17, 2008), at an exercise price of $0.30/FT Unit. The proceeds will be used for drilling and geophysical surveys on the Company's base metals and diamond properties near Paulatuk, NT. The proceeds must be used to incur Canadian exploration expenses by December 31, 2009 (as defined in the Income Tax Act).

These private placement offerings are subject to the receipt of all required regulatory approvals.

Further to the Company's news release on November 4th regarding La Prairie Limited's debt conversion, this offer has been declined due to the current market conditions however the Company remains committed to offering debt conversion where allowable.

About Darnley Bay Resources Limited

The Company was formed in 1993 to explore and develop an area of geophysical significance in the Northwest Territories of Canada. Initial base metal exploration fortuitously resulted in the discovery of diamonds, indicating that the area is host to both metallic and non-metallic mineral deposit interests. The Company's objectives are to secure and maintain successful financing partnerships to continue exploration for both base metals and diamonds that will result in the development of a profitable mining venture.

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

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