Foran Announces Private Placements for up to C$14 Million

SASKATOON, SASKATCHEWAN--(Marketwire - Feb. 7, 2011) -  

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES.

Foran Mining Corporation (TSX VENTURE:FOM) ("Foran" or the "Company") is pleased to announce a brokered private placement of securities through a syndicate of agents to be led by Scotia Capital Inc. and GMP Securities L.P. (the "Agents"), in which the Agents will issue up to C$6,300,000 in common shares (the "Common Shares") on a reasonable commercial efforts basis (the "Offering") at a minimum price of C$1.05 per Common Share. The Offering is scheduled to close on or about March 7, 2011. The Agents will receive a cash commission representing 6% of the gross proceeds of the sale of the Common Shares.

The Company also proposes to complete, concurrently with the Offering, a non-brokered private placement of up to 6,000,000 flow-through common shares at a price to be determined in the context of the market. Closing is expected to take place on or before March 7, 2011. 

The net proceeds from the sale of the Common Shares will be used for exploration and general working capital purposes.  

All securities issued in connection with the Offering will be subject to a four-month hold period. Completion of the Offering is subject to a number of conditions including completion of satisfactory due diligence investigations and receipt of all necessary regulatory approvals.

These securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States or to, or for the benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

About Foran Mining Corporation

Foran Mining is an exploration company currently focused on the McIlvenna Bay deposit, which is comprised of 26 claims totaling 12,950 ha, and is located approximately 1 kilometre south of Hanson Lake, Saskatchewan, approximately 375 km northeast of Saskatoon and 65 km west south-west of Flin Flon, Manitoba.

"ON BEHALF OF THE BOARD OF DIRECTORS"

Darren Morcombe, Chairman, Patrick Soares, P.Geo, President/CEO

Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking information is identified by words such as "estimates", "intends", "expects", "believes", "may", "will" and include, without limitation, statements regarding the company's plan of business operations (including plans for progressing assets), estimates regarding mineral resources, projections regarding mineralization and projected expenditures. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, risks inherent in the mining industry, financing risks, labour risks, uncertainty of mineral resource estimates, equipment and supply risks, title disputes, regulatory risks and environmental concerns. Most of these factors are outside the control of the company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.