SOURCE: FinMetal Mining, Ltd.

June 20, 2007 09:00 ET

FinMetal Signs Definitive Agreement to Acquire 51% of Halvala Nickel Mine

TAMPERE, FINLAND--(Marketwire - June 20, 2007) - FinMetal Mining Ltd. (OTCBB: FNMM) is pleased to announce the recent execution of the definitive agreement to form a Joint Venture ("JV") with Magnus Minerals OY ("Magnus") to develop nickel (Ni) reserves in a former nickel-producing region of Finland known as the "Enonkoski Nickel Belt." The JV covers eleven projects including the former producing Halvala Nickel Mine.

Terms of the Transaction

FinMetal can acquire ownership from Magnus of up to a fifty-one (51%) percent interest in certain valid claim reservations, and pending claims located in the Enonkoski Nickel Belt. To do so, it must fulfill a US $10 million work commitment and pay euros EUR 3 million in option payments. FinMetal will be the operator of the JV.

Once FinMetal has earned a 51% interest, both FinMetal and Magnus will convert their interest to a working interest. If either party is unable or unwilling to fund their share of continued exploration and other required expenditures, the working interest would be reduced proportionally. In the case of Magnus, the working interest can fall to no less than 10%. At this point Magnus' interest would convert into a carried interest. FinMetal will have the right to buy this 10% carried interest for US $10 million.

FinMetal has paid euros EUR 300,000 towards the option payments and owes the balance of EUR 2.7 million of option payments to Magnus as follows; EUR 600,000 by November 30th 2008, EUR 900,000 by November 30th 2009 and EUR 1,200,000 by November 30th 2010. FinMetal must also perform US $10 million of work in the area, with minimum expenditures of $1.8 million by November 30th 2008, $2.2 million by November 30th 2009, $2.8 million by November 30th 2010 and $3.2 million by November 30th 2011.

On Behalf of the Board:

Daniel Hunter - CEO

Disclaimer

This release contains forward-looking statements that are based on the beliefs of FinMetal Mining Ltd.'s management and reflect FinMetal Mining Ltd.'s current expectations as contemplated under section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. When used in this release, the words "estimate," "project," "believe," "anticipate," "intend," "expect," "plan," "predict," "may," "should," "will," "can," the negative of these words, or such other variations thereon, or comparable terminology, are all intended to identify forward-looking statements. Such statements reflect the current views of FinMetal Mining Ltd. with respect to future events based on currently available information and are subject to numerous assumptions, risks and uncertainties, including, but not limited to, risks and uncertainties pertaining to development of mining properties, changes in economic conditions and other risks, uncertainties and factors, which may cause the actual results, performance, or achievement expressed or implied by such forward-looking statements to differ materially from the forward-looking statements.

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