Puma Exploration Inc.

Puma Exploration Inc.

October 16, 2007 09:06 ET

Exploration Puma Completes $350,000 Investment

RIMOUSKI, QUEBEC--(Marketwire - Oct. 16, 2007) - Exploration Puma (TSX VENTURE:PUM) has completed a $350,000 investment with Northern Precious Metals 2007 Limited Partnership, subject to final acceptance by the TSX Venture Exchange. Under this investment, the Company has issued 875,000 flow-through common shares at a price of $0.40 per share and 437,500 stock purchase warrants, each giving the right to subscribe a common share. Each stock purchase warrant can be exercised at a price of $0.45 per share until October 15, 2008, and $0.55 per share until October 15, 2009. If the shares are traded at a price equal to or greater than $1.00 per share for a period of 10 consecutive trading days, according to the closing price, Exploration Puma may notify the holders of stock purchase warrants in writing of its intention to change the exercise price of the stock purchase warrants. Upon receipt of this notice, the holder will have 10 business days to exercise the stock purchase warrants. Otherwise, their exercise price will be automatically fixed at $0.75 until their expiration.

Northern Precious Metals Management acted as the broker for this investment, and has been paid the due diligence fees of 6% of the investment proceeds.

These securities will be subject to a holding period until February 16, 2008. The investment proceeds will be used for exploration work. With this investment, the Company now has 30,968,533 issued shares.

The TSX Venture Exchange accepts no responsibility regarding the truthfulness or accuracy of this press release.

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