Franconia Minerals Corporation
TSX : FRA

Franconia Minerals Corporation

January 29, 2010 16:16 ET

Franconia Minerals Closes $4.23 Million Private Placement

SPOKANE, WASHINGTON--(Marketwire - Jan. 29, 2010) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES NEWSWIRE SERVICES.

Franconia Minerals Corp. ("Franconia" or the "Company") (TSX:FRA) is pleased to announce that it has completed its previously announced private placement of 9,400,000 special warrants (the "Special Warrants") at a price of $0.45 per Special Warrant for gross proceeds of $4.23 million (the "Offering"), including exercise of the underwriter's option. The Offering was underwritten by Wellington West Capital Markets Inc.

Each Special Warrant will be automatically exercised for one Unit (the "Units") of Franconia for no additional consideration following the receipt of a final prospectus qualifying for sale the Units underlying the Special Warrants. Each Unit consists of one common share and one half of one common share purchase warrant. Each full warrant is exercisable into one common share at a price of $0.70 for a period of 12 months from the closing date. The Company will use its best efforts to obtain a receipt for a final prospectus within 45 days of closing of the Offering. All Special Warrants not previously exercised will be automatically exercised for Units four months and one day following the closing date.

The net proceeds of the Offering will be used to advance the Company's Birch Lake deposit in Minnesota, and for general corporate purposes.

About Franconia Minerals Corporation (TSX:FRA): Franconia is currently focused on the development of the Birch Lake copper-nickel-platinum-palladium project - consisting of the Birch Lake, Maturi and Spruce Road deposits - in the highly prospective Duluth complex in northeastern Minnesota. The recently updated NI 43-101 report estimates an Indicated Resource of 131.2 million tonnes, plus an Inferred Resource of 37.5 million tonnes for the Birch Lake deposit (see news release dated September 23, 2009). Underground mining at Birch Lake will minimize the surface impact of the operation. Also, storage of mine wastes underground would further minimize the surface impact. Additional resources at the Birch Lake project include Inferred Resources at the Maturi deposit (see news release of September 6, 2006) and at the Spruce Road deposit (see news release of December 3, 2007). Independent reports prepared to NI 43-101 standards by Scott Wilson RPA are available at www.SEDAR.com and www.franconiaminerals.com.

FORWARD LOOKING STATEMENTS:

This news release contains certain "forward-looking statements" and "forward-looking information" under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan", "except", "project", "intend", "believe", "anticipate", "estimate", and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Assumptions upon which such forward-looking statements are based included that all required third party regulatory and governmental approvals will be obtained. Many of these assumptions are based on factors and events that are not within the control of Franconia and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions and other risk factors discussed or referred to in the annual information form of Franconia dated December 21, 2009 and in the annual Management's Discussion and Analysis for Franconia filed with the applicable securities regulatory authorities and available at www.sedar.com. Although Franconia has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Franconia undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

THIS NEWS RELEASE, PROVIDED PURSUANT TO APPLICABLE CANADIAN REQUIREMENTS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS ABSENT REGISTRATION OR APPLICABLE EXEMPTION FROM REGISTRATION REQUIREMENTS.

The TSX has neither approved nor disapproved the contents of this press release.

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